Procurement is a keystone in development finance. Eurodad estimates that US$ 69 billion of aid money is spent on procuring goods and services annually either by donors or by recipient countries, more than 50% of total Official Development Assistance (ODA). Procurement practices are, therefore, key to ensure that aid delivers the best development results. More than ten years after initial agreements to untie aid, two thirds of contracts awarded by bilateral donors still go to firms from Organisation for Economic Cooperation and Development (OECD) countries.
Aid untying is essential for smart procurement as well as the use of country systems, which increases ownership and domestic accountability, and improves the chances for local firms to win contracts. Much more can and must be done to fully exploit the potential of targeted and wellregulated procurement, which can yield a double dividend for poverty eradication and sustainable development.
Read the full updated summary: How to spend it: Smart procurement for more effective aid
Download the full report published on September 2011 in different languages: How to spend it: Smart procurement for more effective aid