Consultancy:Profession or Business Gian E. Casartelli The World Bank

Consultancy:Profession or Business Bank Approach Consultant Business: Procurement issue a) Bank projects b) Harmonized country procurement system Professions : Country Development issue c) Professional Economy d) Contribution to well- functioning socio-economic setting

Consultant Assessment Reports 1rst Generation CPARs did not consider the effects of poor procurement rules on professional consulting services 2 nd Generation Reforms are strongly “knowledge based and technical”, require more consulting services. As a consequence: 2 nd Generation CPARs include Consultant Assessment (CAR) 1 st Generation Reforms bypassed Consultants

2 nd Generation CPARs lead to Consultant Assessments (CAR) with main objectives: Assess the country consultant procurement performance and recommend improvements Assess suitability of the consultant procurement system for independent national consultancies Consultant Assessment Reports

Consultant Assessment Report Review and make recommendation upon: Country policy on consultants Regulation on consultants Selection processes and practices Capacity building and Integrity Demand and Supply conditions Risk analysis

Consultant Assessment Reports Country policy on consultants, questions: Are professional consultants needed? In what fields? Should they be national or foreign in what proportion? Should government support consultants?

Consultant Assessment Reports Regulation of professional consultants, caveats: Beware of no regulation Beware of UNCITRAL model Beware of aggregation into the general procurement law Recommendation: look at harmonized MDB

Consultant Assessment Report Institutional arrangements: Policy council and institutional links between those contributing to policy implementation Regulatory unit in procurement departments covering consultant issues Technical departments led by professionals Credible evaluation committee in executing agencies

Selection processes and practices Objectives: Improve procurement processes Attract interest of national independent professional consultants Targets: Reduce process complexity Reduce transaction time and cost Increase integrity of transaction Consultant Assessment Report

Capacity and integrity building: Develop professional capacity in formulation of policy, regulation, selection and management Provide Incentives: Recognition, Remuneration and enforcement tools to discourage corruption Establish official dialogue with national consultants associations on policy, regulation on procedures

Consultant Assessment Report Consultant strategy: re-establish trust and dialogue Short term: White book: “Cost of poor quality projects” Insist on the adoption of suitable regulation Medium term Organizing principles: sound professional and honest practices Strengthen national associations Train young professional consultants.

Bank Strategy: Institutionalize CARs Invest in public sector, public service, and procurement reform Promote consultant policy harmonization Promote dialogue between borrowers and professional consultants Develop collaboration with umbrella organizations Consultant Assessment Report FIDIC 2004

Consultant Assessment Report The way forward Recommended Action Plan for the short term: Consultant prepare white books Banks prepare CARs Government invites to seminar/workshop Medium term Consultants: Quality and integrity as organizing principles Government: Simplify rules, build capacity and incentives Bank: Invest in capacity building counting on integrity FIDIC 2004