Skip to content

Forum for the Future of Aid

Southern Voices for Change in the International Aid System Project

The Forum on the Future of Aid is an online community dedicated to research and opinions about how the international aid system currently works and where it should go next

organised by ODI

Buying Power Aid, Governance and Public Procurement

Author: Olivia McDonald, Christian Aid

This paper analyse the importance of government procurement systems as one of the most controversial aspects of the good governance agenda.
It stresses the importance of procurement systems “as a major tool for promoting development strategies, since governments tend to be the largest single consumers of goods and services. A government’s use of purchasing can thus be a very significant tool to achieve socio-economic objectives. If procurement reform is done accountably, with a view to achieving both cost-effectiveness and broader development goals, it can play a powerful role in poverty reduction.”
The paper states that while one of the main aid-effectiveness commitments is to increase the use of country systems, donors’ use of national procurement systems is, in part, linked to the degree of liberalisation of those systems. “This link to liberalisation is alarming when set against the failure of donors to stop aid-tying, which allows them to ensure domestic firms secure aid-funded contracts”.
The paper places a set of recommendations to reform Aid effectiveness commitments related to the use of local procurement systems and how donors should engage in procurement reforms.

To read the full paper, click here

Log In or Join

Resource Categories

Size of tags indicates the number of resources
Absorption Accountability Africa Aid Architecture Aid Architecture Aid effectiveness Aid linkages Aid modalities Aid organisations All regions Asia Pacific Bilateral Donors Budget Support By Region Capacity Development Conditionality Corruption CSOs Debt Relief Domestic Resource Mobilisation Donor Coordination Mechanisms Economic Growth Education Effects of aid Emergencies Environment Europe Food Aid Gender Good Humanitarian Donorship Governance Harmonisation & Alignment Health Hot Topics Humanitarian Aid Quality Institutions Latest trends Latin America and Caribbean Macro impacts/Dutch Disease MDGs Middle East Multilateral and International (governmental) Organisations National Policy Frameworks/PRSs Natural Disasters NGOs Ownership Productive Sectors Public Expenditure Management/Budget Sector Programme based approaches Technical Assistance Trade Vertical Programmes/Global Initiatives Workshops

Recent Forum Posts

  • The Paris Declaration is Gender Blind
  • The urgent need for transparency and accountability
  • Your Support is needed in Egypt
  • Independent People's Tribunal on the World Bank Group
  • South and the future of the world

Suggest a Resource

If you would like to suggest a resource for the Forum on the Future of Aid, please email