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Innovative procurement to enhance public-sector productivity

28 Jul 2023

It is widely agreed that public procurement should be governed by the principles of open competition and utmost integrity. Viewed as a strategic arm of government operations, procurement is recognized as a critical public-sector management tool, as it directly influences the quality and quantity of services delivered to citizens. The concept of innovative public procurement refers to acquiring new or significantly improved goods or services to enhance the productivity and efficiency of public services. This can help stimulate innovation in the market, leading to improved services, greater efficiency in public expenditure, and broader benefits to society.

An online workshop on Innovative Public Procurement was organized by the National Productivity Secretariat (NPS) of Sri Lanka and APO Secretariat, 18–20 July, to explore procurement processes that promote innovation and productivity. Two international resource persons from the ROK and Sweden and one local resource person from Sri Lanka conducted sessions with 35 participants from 10 member economies to discuss new approaches to public procurement.

The workshop was centered on the OECD Framework to Promote the Strategic Use of Public Procurement for Innovation (2017), which includes policy strategies and stakeholder management to make procurement systems more successful. Participants were introduced to new models of innovative public procurement, such as green procurement, social procurement, and health-sector procurement. The shift toward innovation was appreciated by participants, who were mainly familiar with the common e-procurement models. In addition, methods for reviewing achievements and challenges of innovative public procurement were examined, with practical examples from the ROK.

Enhancing public-sector productivity is of paramount importance, as it directly translates into the quality and effectiveness of services offered and the national economy. By supporting public-sector productivity, the APO contributes to sustainable economic development and an improved quality of life among its members and around the region.

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