In the expansive world of government procurement, which accounts for 10 to 20 percent of a nation’s GDP, strategic decision-making is essential. Policymakers regard procurement systems not merely as transactional frameworks but as influential instruments for advancing macroeconomic goals. These systems possess considerable potential to shape industrial landscapes, making procurement a pivotal factor in national economic strategy.
The various procurement policies aim to steer purchases towards specific sectors, often advocating for initiatives such as ‘buy small’, ‘buy local’, or ‘buy green’. Nonetheless, there is a significant gap in evaluating the effectiveness of these policies in achieving their objectives. During this Policy Research Talk, Manuel García-Santana will delve into critical economic research insights that scrutinize the implications of these procurement strategies.
Key questions posed in this dialogue include the effectiveness of these policies, the possibility of negative unintended consequences, and their macroeconomic impacts. Additionally, will the success of these strategies vary based on a country’s developmental stage? Answering these questions will provide policymakers with a comprehensive view of the trade-offs inherent in procurement policy design, alongside their broader economic ramifications.
To support this conversation, two insightful research papers will be highlighted: “Governments’ Home Bias and Efficiency Losses” and “Buy Big or Buy Small? Procurement Policies, Firms’ Financing, and the Macroeconomy”. These resources will illuminate critical aspects of how procurement decisions can shape economic outcomes, leading to informed policy development.
The event is scheduled for January 28, 2025, from 12:30 PM to 2:00 PM ET at the MC Building (MC 2-800). Participants are encouraged to reach out to Michelle Chester via [email protected] for more information about this essential discussion on procurement and its economic impacts.
Government procurement significantly influences national economies, accounting for 10-20% of GDP. Policymakers are keen to understand the effectiveness of procurement policies like ‘buy small’ and ‘buy local’. Manuel García-Santana will present findings on these policies’ impacts during a talk on January 28, 2025, helping clarify the trade-offs involved in effective policy design.
The upcoming event on government procurement promises to unravel the complex economic dynamics at play. With Manuel García-Santana leading the discussion, attendees will explore the effectiveness of procurement policies and their macroeconomic impact. By addressing key questions, this talk aims to equip policymakers with insights necessary for crafting effective procurement strategies that align with national objectives.
Original Source: www.worldbank.org
