1. Monitoring Procurement: The Small and the Big Way
THE WORLD BANK
E-Government: Impact on Transparency and Anti-Corruption
January 28, 2002
Monitoring Procurement: The Small and the Big Way
Director
Managing Partner
Miguel Schloss

2. Procurement E-System Enhance efficiency and effectiveness
Increase transparency and probity
Empower civil society
Strengthen public management

3. Procurement:
Monitoring the Small Way:
Public Surveillance

5. Procurement Monitoring
Price Comparisons
Professional Coordination
Homogenous products
Primary data (invoices, contracts)
Information analysis (price ranges, averages)
Bulletin, Publications, Dissemination
Monitoring Results

6. Procurement Monitoring
Public Hearings
Meeting with Stakeholders, including media
Levelling Playing Field; Technical Experts
Agenda, Trade-Offs Assessment, Discussion,
Minutes
Explicit Resolution of Issues

7. Procurement Monitoring
Integrity Pacts
No-bribery commitment by bidders
Commitment of government to prevent extortion and acceptance of bribes
Disclosure of payments
Sanctions against bidders who violate their no-bribery commitment
Involvement of civil society in monitoring bid evaluation, award decision process and implementation of the contract

8. Procurement Monitoring
Evaluation
Strategic positioning (vulnerable areas).
State-of-the-art expertise.
Constituency grounding.
Opening to outside bidders.
Watch up-scaling implications
Risks of bureaucratization
Focus on systemic issues
Safeguards for whistleblowers, arbitration vehicles.

9. Procurement:
Monitoring the Big Way:
The Policy & Institutional Route

10. Bribery by Business Sectors

11. Ominous Correlations: Oil Economies
Why has this happened? This slide and the next, titled "Ominous Correlations", shed some light on the problem.
The chart above, based on ongoing research at the World Bank, plots performance against a variety of governance indicators for 155 countries. The vertical axis shows the likely range of the indicators for each country, and the mid-points the most likely value*.
A very clear correlation emerges. Oil exporting developing countries are clustered heavily in the bottom one-third of all countries included in the sample. We have seen that oil wealth is often inversely correlated with growth and development. This chart suggests strongly that oil wealth is also inversely correlated with governance. The implication is that oil erodes governance which in turn limits growth.
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*Several hundred indicators are used, primarily qualitative, produced by a range of organizations…commercial risk rating organizations, multilateral agencies, think-tanks, NGOs…Topics/indicators include political stability, business climate, perceptions of corruption, quality of public service, etc. For more information, visit
Source: World Bank Institute

12. Potential Savings

13. Government Involvement and Levels of Inefficiency

14. Petroleum Import Dependency

15. No “one size fits all” e-government solutions
Preconditions:
Actions require ownership: demand and constituencies for accountability, responsiveness, partnerships.
Performance requires contestability: checks and balances, plurality and competition, emancipation/empowerment, removal of governments and private sector monopolies.
Sustainable action requires incentives: motivation, alignment between public and individual wellbeing.
Change in mindset towards service orientation; processes and ICT are means, not ends; piercing bureaucratic barriers.