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Scandalous procurement in development assistance

Study: How to spend it?

The Paris Declaration and the Accra Agenda for Action (AAA), major aid effectiveness agreements of the international community, were a first attempt to make aid work better for poverty eradication and sustainable development and to deliver on the Global Partnership for Development (MDG8), but little attention has so far been paid to how aid can enable poor people and countries to help themselves, to become independent from aid in the long run. By Bodo Ellmers


According to a new study (see reference), key to such success are smarter procurement practices by aid agencies and developing country governments. Development projects are administered by ministries and aid agencies but they rely on inputs from the private sector, for example to contract construction firms to deliver infrastructure works, buy drugs for health programmes, or purchase textbooks for education projects. The exact amount is not officially disclosed, but our calculations suggest that $69bn annually, more than 50% of total official development assistance, is spent on procuring goods and services for development projects from external providers...

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Find in this article:

How smart are donors’ procurement practices?
Options for reform
Using country systems can change the picture
Country Procurement Systems: Strengthened by whom and for what?

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