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Public procurement as an industrial policy tool: an option for developing countries
- Journal of public procurement
"... ABSTRACT. This article sets out to answer two interrelated questions: is it advisable for developing countries to use public procurement efforts for development, and should more developing countries join the World Trade Organization (WTO) Government Procurement Agreement (GPA)? We survey key argume ..."
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ABSTRACT. This article sets out to answer two interrelated questions: is it advisable for developing countries to use public procurement efforts for development, and should more developing countries join the World Trade Organization (WTO) Government Procurement Agreement (GPA)? We survey key arguments for and against joining the GPA, and argue that government procurement should not be seen only as an indirect support measure for development, but also as a direct vehicle for promoting innovation and industries and, thus, growth and development. We also show that using public procurement for development assumes high levels of policy capacity, which most developing countries lack. In addition, we show how the GPA as well as other WTO agreements make it complicated for the developing countries to benefit from public procurement for innovation. The article suggests that the developing countries could apply a mix of direct and indirect (so-called soft) public-procurement-for-innovation measures. In order to do this, developing countries need to develop the policy capacity to take advantage of the complex and multi-layered industrial policy space still available under WTO rules.
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"... public management, policy capacity, innovation and development erkki karO rainer katteL* In this paper we discuss the question of what factors in development policy create specific forms of policy capacity and under what circumstances development-oriented complementarities or mismatches between the ..."
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public management, policy capacity, innovation and development erkki karO rainer katteL* In this paper we discuss the question of what factors in development policy create specific forms of policy capacity and under what circumstances development-oriented complementarities or mismatches between the public and private sectors emerge. We argue that specific forms of policy capacity emerge from three inter-linked policy choices, each fundamentally evolutionary in nature: policy choices on understanding the nature and sources of technical change and innovation; on the ways of financing economic growth, in particular technical change; and on the na-ture of public management to deliver and implement both previous sets of policy choices. Thus, policy capacity is not so much a continuum of abilities (from less to more), but rather a variety of modes of making policy that originate from co-evo-lutionary processes in capitalist development. To illustrate, we briefly reflect upon how the East Asian developmental states of the 1960s-1980s and Eastern European transition policies since the 1990s led to almost opposite institutional systems for fi-nancing, designing and managing development strategies, and how this led, through co-evolutionary processes, to different forms of policy capacity.
zbw Leibniz-Informationszentrum WirtschaftLeibniz Information Centre for Economics
"... räumlich unbeschränkte und zeitlich auf die Dauer des Schutzrechts beschränkte einfache Recht ein, das ausgewählte Werk im Rahmen der unter ..."
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räumlich unbeschränkte und zeitlich auf die Dauer des Schutzrechts beschränkte einfache Recht ein, das ausgewählte Werk im Rahmen der unter
Forthcoming in Journal of Public Procurement
, 2010
"... Public procurement as an industrial policy tool an option for developing countries? ..."
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Public procurement as an industrial policy tool an option for developing countries?
