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Making public procurement SMEs friendly in the MENA countries Olga Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

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Making public procurement SMEs friendly in the MENA countries Olga Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy. SMEs in public procurement. Great potential for development and growth - PowerPoint PPT Presentation

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Page 1: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

Making public procurement SMEs friendly

in the MENA countries

Olga SavranOECD-MENA Investment Programme

20 September 2012, Caserta, Italy

Page 2: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

SMEs in public procurement

• Great potential for development and growth

• Little involvement due to capacity constrains - subcontractors and framework agreements

• High integrity risks – vulnerability to solicitation, low capacity for integrity responses

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Page 3: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

SMEs in MENA countries

• Important players in productivity growth, innovation and job creation– but slower growth in the MENA region

• Opportunities and obstacles for high growth– Regulatory environment, access to

finance, skills, other

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Page 4: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

• MENA-OECD Investment Programme, working group on SME policy discussed various issues, high growth, enterprise development, women entepreneruship and other issues on job creation and other avenues for SME development

• will develop country-specific policy recommendations

• In this context government procurement was mentioned

• at its meeting on 17 July 2012 in Rome called upon governments:

to ensure that government procurement and tenders’ regulations do not put SMEs at a disadvantage; and called for adopting an “SME mindset”

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Page 5: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

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Page 6: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

Towards an action plan

• Clear policy objective, e.g. 10% target of contracts awarded to SMEs

• Facilitate access to finance, e.g. 20% of total financing needs for SME implemented projects from grants, funds, guarantee schemes

• Simplify regulations, e.g. reduce the time spent for PP procedures by 20 %

• Business support to train/inform SMEs, e.g. about pp procedures, risks of corruption, complaints mechanisms 6

Page 7: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

Involving stakeholders

• Listen to/talk to/study the practices of SMEs

From formalistic councils to open dialogue

Continuous examination of progressUndue pressure from interest groupsE-platforms; surveys; government

capacity to analyse, provide transparent information and facilitate dialogue

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Page 8: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

MENA-OECD Investment Programme

• Working Group on SME policy, entrepreneurship and human capital development

• MENA Business Integrity Network

– Regional exchange of experience, best practices and benchmarking for business representatives

– Private-public dialogue on practical measures to promote integrity in public procurement 8

Page 9: Making public procurement SMEs friendly  in the MENA countries Olga  Savran OECD-MENA Investment Programme 20 September 2012, Caserta, Italy

WWW.OECD.ORG/DAF/PSD

Thank you for your attention

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