Chapter 1 – Public procurement, a tool to shape societies
Purchasing is worth 10–40% of GDP Governments are also active, major participants in the market. Each year, governments spend trillions of dollars buying goods, services, and works (Anderson, Pelletier, OseiLah and Müller, 2011; Audet, 2002). Public procurement is estimated to comprise as much as 10–15% of the gross domestic product (GDP) in developed countries and 30–40% in developing countries (Kirton, 2013).
Public procurement for women – ‘smart economics’ Research shows that there is a positive correlation between gender equality and a country’s gross domestic product (GDP) per capita. When women are excluded from the marketplace, the economy suffers. Promoting gender equality is, in the words of former World Bank President Robert Zoellick, ‘smart economics’. The same applies to using public procurement policy to stimulate entrepreneurial activity by women-owned businesses
Support women, boost national competitiveness There is a positive correlation between gender equality and a country’s level of competitiveness, GDP per capita and its rank in the Human Development Index, according to the World Economic Forum. ‘While correlation does not prove causality, it is consistent with the theory and mounting evidence that empowering women means a more efficient use of a nation’s human capital endowment and that reducing gender inequality enhances productivity and economic growth’ (World Economic Forum Gender Gap Report 2013, p. 31). Output per worker jumps from 13–25% when barriers that prevent women from entering certain sectors or occupations are eliminated, according to the World Bank’s World Development Report 2012.
Empowering women through public PROCUREMENT
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