G7 commits to open and participatory public procurement reforms essential to ensure trillions of dollars for recovery aren’t wasted
- Governments around the world spend $13 trillion a year on contracts for public services, goods, and public works, but key information is missing in over 97% of this spending
- Countries with more open procurement systems managed pandemic supply chain disruptions more effectively and transparently, highlighting the urgency of procurement reform
- OCP welcomes G7 commitments on transparency, accountability and digitization across the procurement process, including accessible and user-friendly open databases
Today’s G7 Interior Ministerial Commitments recognized the importance of open contracting in tackling the vulnerability of public procurement systems to fraud and corruption.
G7 countries committed to strengthen their public procurement systems guided by a vision of transparency and digitization across the full procurement process, from planning to payments. They also committed to “strengthen data collection systems”, and supported “open databases that are accessible and user-friendly” are critical elements of public procurement reforms and recognized the vital role of civil society and the media in monitoring anti-corruption reforms. This is the first time the G7 has committed to open contracting reforms like this and the commitments reflect the critical role of open and efficient procurement in the pandemic response and recovery for all countries.
“Fraudulent or incompetent providers for vital supplies during the pandemic have cost lives, time and money. We can’t afford to pour trillions into the same leaky systems as we look to rebuild our economies. We welcome the commitments by G7 to reform procurement so it is smart, digital, accountable and inclusive. Implementation must start now to build much stronger and fairer economies for the future,” said Gavin Hayman, executive director of OCP.
The communication notes that “countries with more open procurement systems have been better able to ensure transparency of public expenditure during the pandemic, helping buyers and suppliers navigate the unprecedented supply chain disruptions, tracking risks as well as fostering public trust in government.” It also recognizes the adoption of the Open Contracting Data Standard as a good digital and open data approach to ensure this end-to-end transparency across the public procurement process.
The pandemic last year has greatly increased awareness of the importance of transparency, creating an unprecedented opportunity for reform. In the Political Declaration of the UN General Assembly Special Session on Corruption 178 countries committed to increased transparency and accountability in public procurement. Now, the G7 governments are committing to speak with one unified voice on corruption, enhancing global cooperation on an issue that crosses borders.
Rapid implementation needs to follow. G7 economies risk wasting trillions of dollars in taxpayers funds on the recovery and stimulus packages unless we see systematic reforms to digitize and open up procurement to make it fairer, help tackle corruption, deliver better services, and promote inclusive economic opportunities.
Georg Neumann, firstname.lastname@example.org, +1-202-7144460
The Open Contracting Partnership is a silo-busting collaboration across governments, businesses, civil society, and technologists to open up and transform government contracting worldwide. We bring open data and open government together to make public contracting fair and effective. Spun out of the World Bank in 2015, we are now an independent not-for-profit working in over 50 countries around the world. We help make reforms stick and innovations jump scale, and foster a culture of openness about the policies, teams, tools, data, and results needed to deliver impact.