Corrective Action and Positive Discriminations in Government Tenders (Summary)

author: Baker Shtayeh, Rand Taweel, Rabeh Morrar, Arwa Abu Hashhash
year: 2022

Public procurement policies play an important role as a stimulant for economic activity in various countries across the world. Their role is not limited to solely serving as a tool for purchasing required goods and services: they are an effective mechanism for reducing poverty, creating job opportunities and promoting economic growth and social development. In the Palestinian context, the process of managing public procurement acquires greater importance, given the limited investment and commercial capacity of the private sector, due to the continuation of occupation and its control over commercial crossings and natural resources. This makes public procurement an important tool in stimulating production and investment.

This study is a continuation of efforts initiated by the World Bank in Palestine to estimate the participation rate of small and medium enterprises (SMEs) in public procurement. Our study will focus on analyzing the environment regulating public procurement operations in the West Bank, while identifying the most prominent legal and procedural obstacles that limit the ability of SMEs to participate in public procurement (the proportion of SMEs did not exceed 8% of the total number bids. In terms of value, their proportion is about 6%). Thus, the study formulates a general conception of the most prominent, legal and procedural reforms that can help to raise the efficiency of public procurement procedures, while formulating interventions that grant SMEs certain preferential advantages in government procurement.

download attachment