The Government of the Philippines and the World Bank recently hosted the International Public Procurement Conference, centered on the theme "Procurement for the People: Bridging Innovation, Value for Money, and Accountability." One major takeaway that we get from this gathering of procurement experts is that public procurement can be the unsung hero explaining why this region is home to the most dynamic countries in East Asia and the Pacific region.
Public procurement may not always make the headlines, but it is one of the most powerful levers for change, according to Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia and Brunei. “When done right, it empowers schools and hospitals, builds roads and bridges, delivers digital innovation, and ensures that public funds truly serve the public good.”
And rightly so. In many countries in the East Asia and Pacific (EAP) region, public procurement accounts for 20% of GDP—a figure that highlights how this activity drives growth, delivers progress, and improves the lives of citizens.
The conference brought together over 150 experts and practitioners from the East Asia and Pacific (EAP) region and beyond to address critical challenges and share solutions on public procurement.
"My hope is that through our collective resolve, our procurement reforms will translate into triumph for our people—from farmers who can more quickly provide food for school feeding programs, to small businesses that can more readily win government contracts, to women-led enterprises that are given the opportunity to compete and thereby uplift their communities," said Philippine Department of Budget and Management Secretary Amenah Pangandaman, welcoming the participants.
The discussions that emerged from the three-day conference highlight several policy reform areas and innovations that countries in the region are working on to improve public procurement. Here are some of the highlights of these key policy reform areas.
Changing the mindset. Public procurement is used to being seen as box-ticking. These days, it’s about responding to real needs, like creating jobs, supporting small businesses, empowering women, and building public trust. It’s about making sure that procurement truly works for the people.
Transparency and public participation. Transparency in procurement is not just about sharing data; it is about building trust. The most important challenge is consolidating data in one place in an easily comprehensible manner, making the adoption of open data standards critical. The way forward includes building transparency into all procurement functions and incentivizing SME participation and citizen engagement.
Professionalizing public procurement. Public procurement has become more complicated because of a widening range of government needs, changing markets and supply chains, new ways of handling contracts, and the use of digital technologies, which also bring cybersecurity and privacy concerns. Procurement practitioners therefore should train in a wide range of skills and competencies. Practitioners need the right tools and support, such as e-procurement platforms, guidelines, and templates, to act more effectively.
Enhancing women’s participation. Women in small businesses face barriers such as limited access to financing, lack of training on procurement processes, and insufficient entrepreneurial support. Therefore, effective policies are essential to guide interventions that increase women’s participation as government suppliers. Supplier development programs—offering training, sector-specific knowledge, and peer networks—are key to building their capacity and competitiveness.
Greening public procurement. Public procurement today places greater emphasis on environmental, social, and governance criteria, such as low carbon emissions, human rights standards, fair labor practices, and biodiversity impact reporting. However, countries across the region are at varying stages of integrating these criteria into their processes. There is still a need to address the misconception that sustainable public procurement leads to higher costs. While there can be higher upfront costs, sustainable public procurement often results in better value for money in the long term.
Implementing beneficial ownership disclosure. Many countries in the EAP region have made varying degrees of progress in implementing reforms related to beneficial ownership disclosure. This refers to the practice of identifying and revealing the true owners of companies that participate in government procurement processes. This practice is necessary to enhance transparency, prevent corruption, and ensure fair competition in the awarding of public contracts.
Using artificial intelligence. Artificial Intelligence (AI) is revolutionizing various sectors, including public procurement. AI applications can help reduce costs and time in processes such as market analysis. It can also help identify market trends. It’s a new frontier that can lead to more efficient, transparent, and secure procurement systems, ultimately benefiting the public and fostering economic growth. However, full digitization is necessary for AI to be effective in procurement.
Diomedes Berroa, World Bank Procurement Practice Manager for East Asia and the Pacific, said that at a time when public trust and fiscal responsibility are more critical than ever, implementing these reforms and innovations in the region will help ensure that public resources are used wisely, efficiently, and equitably and deliver results that improve lives and build resilient communities.
