The range of economic sectors affiliated with public procurement is as wide as governments’ need to properly function and deliver services to its citizens. Governments turn to the private sector for supplies of goods and services for such activities like construction of hospitals, securing financial services or construction of new roads or dams.To date, it is surprising to note that there is not a single attempt to systematically collect or document reliable statistics on the size of public procurement in the developing economies around the world. The European Union, however, has well-documented public procurement data for the high-income countries and are publicly available (The European calculates), which averages the share of public procurement in the GDP of its member states (28 member states) to be 16 percent. The Organization for Economic Cooperation and Development also collects statistics on the share of public procurement on the 35 member states which average 12 percent of GDP in 2015. The rest of the world the data and analysis on Public Procurement are very scarce. The World Trade Organization predicts that the share of public procurement in GDP globally to be between 10 and 15 percent, showing that public procurement is as used in middle-income and poor countries as in high-income ones. According to a study carried out in 123 countries by World Bank in 2016, for 2015 or the latest available year, it 9 | P a g e
was concluded based on data obtained from international development institutions or governments showed that there existed a large share of public procurement in the GDP of low-income countries at 14.5%, followed by upper-middle income countries at 13.6%. In an example, due to both significant inflows of development assistancethat go through public procurement and the small size tax base, Eritrea’s Public Procurement is a whole 33 percentof the GDP, which makes government expenditures almost entirely dependent on development aid and Angola is much the same. However, some developed nations also have high shares of public procurement in GDP such as theNetherlands at 20.2% and Finland at 18.5% (Asif &Simeon, 2016).The United Nations through its Population branch (United Nations Population Fund-UNFPA) in 2013 engaged in a goal described as ‘Greening the Blue’ which aims gradually become climate neutral and environmentally sustainable which had was in two sections (i) Initialization of a dialogue with suppliers and manufacturers and (ii) Setting requirements to which they must adhere to (Morten, 2013) UNFPA would later introduce the environmental component to procurement to safeguard the environment with the aim of having a sustainable environment.The specific goals included (a) the environmental focus areas for which UNFPA would like to setup requirements and (b) the process through which the suppliers are expected to demonstrate that they met these requirements. Suppliers can exercise influence in four parts of their organization to make improvements which
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- Spring '08
- Environmentalism, Green Public Procurement, GPP