Making public procurement SMEs friendly in the MENA countries Olga Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

SMEs in public procurement Great potential for development and growth Little involvement due to capacity constrains - subcontractors and framework agreements High integrity risks – vulnerability to solicitation, low capacity for integrity responses 2

SMEs in MENA countries Important players in productivity growth, innovation and job creation –but slower growth in the MENA region Opportunities and obstacles for high growth –Regulatory environment, access to finance, skills, other 3

MENA-OECD Investment Programme, working group on SME policy discussed various issues, high growth, enterprise development, women entepreneruship and other issues on job creation and other avenues for SME development will develop country-specific policy recommendations In this context government procurement was mentioned at its meeting on 17 July 2012 in Rome called upon governments:  to ensure that government procurement and tenders’ regulations do not put SMEs at a disadvantage; and called for adopting an “SME mindset” 4

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Towards an action plan Clear policy objective, e.g. 10% target of contracts awarded to SMEs Facilitate access to finance, e.g. 20% of total financing needs for SME implemented projects from grants, funds, guarantee schemes Simplify regulations, e.g. reduce the time spent for PP procedures by 20 % Business support to train/inform SMEs, e.g. about pp procedures, risks of corruption, complaints mechanisms 6

Involving stakeholders Listen to/talk to/study the practices of SMEs  From formalistic councils to open dialogue  Continuous examination of progress  Undue pressure from interest groups  E-platforms; surveys; government capacity to analyse, provide transparent information and facilitate dialogue 7

MENA-OECD Investment Programme Working Group on SME policy, entrepreneurship and human capital development MENA Business Integrity Network –Regional exchange of experience, best practices and benchmarking for business representatives –Private-public dialogue on practical measures to promote integrity in public procurement 8

Thank you for your attention 9