NOVEMBER 2017CIOAPPLICATIONS.COM8odern public sector procurement is a key instrument for galvanizing the market to develop technology-driven solutions with far wider applications than public services delivery. It is also an important driver of market competitiveness, resource efficiency, and responsible industry practices. The breadth and amount of public sector procurement is the influencing factor; it affects a substantial share of world trade flows; represents a significant part of national economies, estimated at 10-25 percent of gross domestic product; and accounts for a considerable share of total government expenditure, averaging 30 percent in OECD countries.The World Bank generates up to US$20 billion per year in the public procurement market with approximately 100,000 contracts awarded annually in 132 countries. This level of procurement expenditure provides the World Bank with a unique opportunity to positively impact development outcomes and market performances, and to see the effects of modernization. Functional performance is more important than ever to extract best value from increasingly limited public financial resources. To this end, public procurement has evolved into a key public sector function to help reduce waste, improve services and delivery, and stimulate growth. Public procurement can be a powerful tool in the pursuit of development objectives such as driving environmental and social best practices by promoting green economies, sustainable consumption, and resource efficiency; or providing the critical mass necessary for new market entrants or innovative, promotable technology such as electric vehicle use. Sustainable procurement --now more commonly referred to as "smart procurement" --is the key to implementing every aspect of sustainable infrastructures and communities, from smart government that promotes public safety and social ENZO DE LAURENTIIS, CHIEF PROCUREMENT OFFICER, THE WORLD BANKTHE LOGIC OF MODERN PUBLIC PROCUREMENTMIN MYVIEWEnzo de Laurentiis
< Page 7 | Page 9 >