Sibeso,

Public procurement is the acquisition of goods, services, and works by governments and public bodies. It is a significant economic activity and one of the most important sources of income for many countries. It is also essential for achieving many public policy objectives, such as economic development, employment creation, and innovation. Public procurement is also a significant factor in fostering economic growth, as it drives investment and innovation, supports the development of local businesses, and creates jobs. The incentives of public procurement in promoting economic development are numerous and varied. For business houses, the primary motivations are access to public sector contracts, which can provide a stable, long-term source of income and the potential to win larger contracts and expand their business. Public procurement can also create opportunities to access new markets and technologies and build relationships with government and public bodies. In addition, public procurement can help business houses achieve greater efficiency and cost savings through economies of scale and improved quality control and compliance. Public procurement can also provide access to new technology and expertise, increasing competitiveness and innovation. However, public procurement also has challenges and barriers to fostering economic development. Firstly, the general procurement process can be complex and time-consuming, with many rules and regulations that must be followed. This can be a deterrent for businesses, tiny and medium-sized enterprises (SMEs), who may need more resources to navigate the procurement process. Secondly, there is often a lack of transparency in public procurement processes, which can lead to favoritism and corruption. This can create an uneven playing field, where larger, well-connected companies have an advantage over smaller, less established businesses. It can also lead to waste and inefficiency, hurting economic development. Finally, public procurement can be complicated by political interference and manipulation. This can lead to contracts being awarded for political gain rather than based on cost and quality, which can have a detrimental effect on economic development. Public procurement can be an effective tool for fostering economic growth, with numerous incentives for business houses. However, multiple challenges and barriers must be addressed to ensure public procurement is conducted fairly and transparently, leading to meaningful economic development.

References:

1. World Bank. (2016). Public Procurement. Retrieved from: https://www.worldbank.org/en/topic/publicsectorgovernance/brief/public-procurement

2. United Nations. (2020). Public Procurement. Retrieved from: https://www.un.org/development/desa/publications/public-procurement.html

3. European Commission. (2016). Fostering Economic Development Through Public Procurement. Retrieved from: https://ec.europa.eu/growth/content/fostering-economic-development-through-public-procurement_en

4. World Bank. (2019). Public Procurement and Economic Development: Challenges and Opportunities. Retrieved from: https://www.worldbank.org/en/topic/publicsectorgovernance/brief/public-procurement-and-economic-development-challenges-and-opportunities

Thanks Felix for the elaborate in put to my question. Thanks for the links too. I am motivated to start moving on my research topic. I will be looking at the current status of public procurement policies and implementation operatives in my country.