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1. Patchwork procurement? How to bridge parallel initiatives in EU joint defence procurement

Author:
Cédric Lombaerts and Lucrezia Sala
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The EU’s defence-industrial base was conceived during peacetime and, because of the ensuing market fragmentation, does not seem fit for purpose to deal with wartime. In an attempt to remedy this, the EU launched several parallel joint defence procurement initiatives (EDIRPA, EDIP, the three-track approach under the European Peace Facility). Between these initiatives, it is easy to lose sight of the forest in the trees of joint procurement. How do these parallel tracks of procurement tie in together? Are they not fragmenting collaborative procurement efforts even further? This CEPS Policy Brief sheds clarity on the interplay between these initiatives and suggests four pragmatic paths towards an overarching joint defence procurement framework while playing into the most salient deadlocks in joint defence procurement today.
Topic:
Defense Policy, European Union, and Procurement
Political Geography:
Europe

2. Maximising the impact of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)

Author:
Vincent Obisie-Orlu
Publication Date:
12-2023
Content Type:
Policy Brief
Institution:
Good Governance Africa (GGA)
Abstract:
This briefing assesses South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). It acknowledges programme achievements while addressing challenges, including delays to the procurement process and financial issues facing REIPPPP projects. It underscores the necessity for electricity industry reform and more cohesive energy policies. It proposes changes to how investment decisions are made, and collaboration occurs alongside the REIPPPP process to promote private sector investment, develop localisation within the REIPPPP and reduce supply chain vulnerabilities. Lastly, it provides a thorough analysis to inform recommendations that will maximise REIPPPP’s role in realising South Africa’s energy objectives.
Topic:
Reform, Finance, Investment, Electricity, Renewable Energy, and Procurement
Political Geography:
Africa and South Africa

3. Negotiations in international procurement management: the case of Bank BIC internationalization project within the CPSC space

Author:
José Abel Moma
Publication Date:
07-2022
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
This research paper identifies the instrumental role of the integrative perspective in international procurement negotiations and evaluates how, in the specific case of BPN’s purchase by BIC, the long-term relationship approach provided the maximization of opportunities in international relations. The research applied a qualitative method that explored the case of BIC internationalization project within the CPSC (Community of Portuguese Speaking Countries) space and resorted to techniques of documentary observation, collected through interviews, official statements and communications. The study demonstrates that BIC strategy gave rise to subsequent negotiations with the same international partner, under conditions of a more cooperative perspective. Findings validate the relevance of an integrative perspective, but suggest that it is instrumental to competitive purposes and demonstrates that the entry into action of business economic actors is not unrelated to a strong involvement of States, through their governments
Topic:
International Relations, Negotiation, Banks, Management, Procurement, and Internationalization
Political Geography:
Brazil, South America, and Global Focus

4. Procurement Data and Safeguards: Looking Historically and to the Future

Author:
David Albright
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
Because nuclear programs depend on procurements, understanding such procurements has become an important aspect of safeguards today. This paper looks back at the development of this approach and draws out lessons for tomorrow. Past cases, recounted using open source data and Institute archives, are drawn from, among others, Iraq Action Team investigations, Iran inspections during 2003-2006, the Khan Network investigations, and the Joint Comprehensive Plan of Action. These cases illustrate important lessons about collecting and including procurement data more explicitly in state declarations and meeting inspection and monitoring goals. The cases also demonstrate the value of procurement data in facilitating the detection of irregularities in a nuclear declaration or verifying the correctness and completeness of a state’s nuclear declaration. These experiences and historical cases yield additional insights and lessons into ways to increase the usefulness of procurement data in future safeguards practices and methodologies.
Topic:
Security, Nuclear Weapons, Data, and Procurement
Political Geography:
Global Focus

5. The Maritime Silk Road: Concerns for U.S. National Security

Author:
Lindsey Madero
Publication Date:
09-2022
Content Type:
Journal Article
Journal:
Journal of Advanced Military Studies
Institution:
Marine Corps University Press, National Defense University
Abstract:
This article examines how China’s twenty-first century Maritime Silk Road impacts U.S. national security. While the literature frequently discusses the Belt and Road Initiative, the Maritime Silk Road and its impact on U.S. national security is notably lacking. This article examines the specific impacts on the U.S. Department of Defense and other government departments and agencies. The main findings reveal that the Maritime Silk Road is a U.S. national security concern because it degrades operational security, alters military force projection, and bypasses ethical procurement norms. The author articulates the importance of U.S. action in response to China’s global port influence, as well as recommends ways to counter each threat China imposes on the United States through the Maritime Silk Road.
Topic:
National Security, Maritime, Surveillance, Norms, Procurement, and Operational Security
Political Geography:
China and United States of America

6. European Defence: Time to Act

Author:
Alessandro Azzoni
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The Russian invasion of Ukraine on 24 February 2022 has renewed momentum on the long-standing debate on EU defence, convincing many that the time for concrete steps to meet this ambition – the building of a united European defence grounded in its own strategic and technological autonomy – has finally come. Talks have been ongoing for some 68 years – that is, since the French parliament sunk the European Defence Community project back in 1954. The manifest broadening of public consensus for the idea of European defence is not enough. Thorough technical assessments will be needed to identify priorities and strike an acceptable balance between reducing duplications, optimising expenses and the inevitable transfer of some elements of strategic and operational “sovereignty” in the military domain.
Topic:
Defense Policy, European Union, Defense Industry, Procurement, and Common Security and Defence Policy (CSDP)
Political Geography:
Europe

7. Iranian Illicit Procurement Scheme to Acquire Controlled Spectrometry Systems Busted

Author:
Spencer Faragasso and Sarah Burkhard
Publication Date:
09-2021
Content Type:
Special Report
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
On September 9, 2021, the German Federal Prosecutors Office issued an arrest warrant for a German-Iranian citizen, Alexander J., who is accused of illegally exporting a multitude of laboratory equipment, including four spectrometers, in three separate cases, exports that appear to have also violated the Joint Comprehensive Plan of Action (JCPOA).1 The total value of all the goods exported to Iran is 1.1 million euros. The defendant, Alexander J., is accused of violating the Foreign Trade Act (AWG) and Regulation (EU) No. 267/2012 of March 23, 2012, as amended in October 2015 in response to the establishment of a special Iranian procurement channel in the JCPOA, which places restrictive measures on certain Iranian entities and equipment for export (and related activities, such as brokering). In the first two cases, Alexander J. is alleged to have exported items to an Iranian national whose Iran-based companies were EU-sanctioned front companies procuring laboratory equipment for Iran’s nuclear and ballistic missile programs at the time. Alexander J. further supplied the sanctioned entity with two spectrometers listed in Annex II of this EU regulation, which lists items that are not on the EU dual-use control list (Regulation (EC) No 428/2009 of 5 May 2009) but that could contribute to sensitive activities, including enrichment-related activities, reprocessing or heavy-water-related activities.2 These items require a license on a case-by-case basis. In addition, Alexander J. violated the regulation by providing goods to an embargoed entity. In the third case, Alexander J. exported two listed spectrometers to a different, unspecified Iranian entity, also without the required license.
Topic:
Security, Nuclear Weapons, Treaties and Agreements, Sanctions, and Procurement
Political Geography:
Iran and Middle East

8. Public procurement in law and practice

Author:
Erica Bosio, Simeon Djankov, Edward Glaeser, and Andrei Shleifer
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper examines a new dataset of laws and practices governing public procurement, as well as procurement outcomes, in 187 countries. The authors measure regulation as restrictions on the discretion of the procuring agents. They find that laws and practices are highly correlated with each other across countries, and better practices are correlated with better outcomes, but laws themselves are not correlated with outcomes. To shed light on this puzzle, they present a model of procurement in which both regulation and public sector capacity determine the efficiency of procurement. In the model, regulation is effective in countries with low public sector capacity and detrimental in countries with high public sector capacity because it inhibits the socially optimal exercise of discretion. The paper finds evidence broadly consistent with this prediction: Regulation of procurement improves outcomes but only in countries with low public sector capacity.
Topic:
Government, Law, Regulation, and Procurement
Political Geography:
Global Focus

9. Toward Agile Procurement for National Defence: Matching the Pace of Technological Change

Author:
William Richardson, Kalen Bennett, Douglas Dempster, Philippe Dumas, Caroline Leprince, Kim Richard Nossal, David Perry, Elinor Sloan, and J. Craig Stone
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
In the fall of 2019, the procurement theme of the Canadian Defence and Security Network (CDSN) convened a workshop on the challenges facing high technology defence acquisitions. The workshop brought together practitioners from the Department of National Defence and Canadian Armed Forces and researchers from universities and think tanks, including graduate students. The aim of this workshop was to give these researchers a chance to understand how those working in defence procurement are tackling the problem of acquiring high technological capabilities that are not obsolete before they are even delivered. The researchers, in turn, have prepared this report, in collaboration with the Canadian Global Affairs Institute (CGAI), on bringing greater agility to defence procurement in Canada. As the authors note, this should be a key part of the defence procurement debate in Canada once Canada and the world emerge from COVID-19 emergency.
Topic:
Defense Policy, Science and Technology, Armed Forces, and Procurement
Political Geography:
Canada and North America

10. Examining the Impact of E-Procurement in Ukraine

Author:
Artur Kovalchuk, Charles Kenny, and Mallika Snyder
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper examines the impact of Ukraine’s ambitious procurement reform on outcomes amongst a set of procurements that used competitive tendering. The ProZorro system placed all of the country’s government procurement online, introduced an auction approach as the default procurement method, and extended transparency. The reform was introduced with a dramatic increase in the proportion of government procurement that was conducted competitively. This paper examines the impact of ProZorro and reform on contracts that were procured competitively both prior to and after the introduction of the new system. It finds some evidence of impact of the new system on increasing the number of bidders, cost savings, and reduced contracting times.
Topic:
Governance, Reform, Procurement, and Contracts
Political Geography:
Europe, Ukraine, and Eastern Europe

11. Tackling the Triple Transition in Global Health Procurement

Author:
Rachel Silverman, Amanda Glassman, Kalipso Chalkidou, and Janeen Madan Keller
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
There have been impressive gains in global health over the past 20 years, with millions of lives saved through expanded access to essential medicines and other health products. Major international initiatives backed by billions of dollars in development assistance have brought new drugs, diagnostics, and other innovations to the fight against HIV, malaria, tuberculosis, and other scourges. But behind these successes is an unacceptable reality: in many low- and middle-income countries, lifesaving health products are either unavailable or beyond the reach of the people who need them most. While each country’s context is unique, a reliable, affordable, and high-quality supply of health products is a vital necessity for any health system. In its absence, lasting health gains will remain elusive.
Topic:
Health, Public Health, Pandemic, Procurement, and Medicine
Political Geography:
Global Focus

12. Tackling the Triple Transition in Global Health Procurement

Author:
Rachel Silverman, Janeen Madan Keller, Amanda Glassman, and Kalipso Chalkidou
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
There have been impressive gains in global health over the past 20 years, with millions of lives saved through expanded access to essential medicines and other health products. Major international initiatives backed by billions of dollars in development assistance have brought new drugs, diagnostics, and other innovations to the fight against HIV, malaria, tuberculosis, and other scourges. But behind these successes is an unacceptable reality: in many low- and middle-income countries, lifesaving health products are either unavailable or beyond the reach of the people who need them most. While each country’s context is unique, a reliable, affordable, and high-quality supply of health products is a vital necessity for any health system. In its absence, lasting health gains will remain elusive. Access to medicines, diagnostics, devices, and equipment is driven in large part by the efficiency of their procurement. Procurement is, therefore, central to the efforts of low- and middle-income countries to improve health, meet the Sustainable Development Goals, and achieve universal health coverage. Health product purchasing in low- and lower-middle-income countries already makes up a sizeable share of overall health spending; in fact, in just a subset of these countries, spending on health products totals an estimated $50 billion per year.[1] Procurement is not only essential to the missions of global health entities like the Global Fund, Gavi, UNICEF, UNFPA, and PEPFAR, but it also represents big money. In the case of the Global Fund, health product procurement accounts for $2 billion per year,[2] or almost half of its 2017 disbursements.[3] Yet despite its importance, procurement is an underappreciated health system function. Today’s procurement systems are hobbled by inefficiencies that leave some of the poorest countries paying some of the highest drug prices in the world.
Topic:
Health, Public Health, Transition, and Procurement
Political Geography:
Global Focus

13. Shifting Mindsets | Section 3: Systems for greater flexibility

Author:
Alice Obrecht
Publication Date:
09-2019
Content Type:
Special Report
Institution:
ALNAP: Active Learning Network for Accountability and Performance
Abstract:
This standalone section of the ALNAP study 'Shifting mindsets: creating a more flexible humanitarian response' focuses on organisational systems to support flexibility. This is one of the three pillars that flexibility relies upon according to this research and also one of the starting points to make humanitarian responses more flexible. It covers flexible approaches in: logistics, supply chain and procurement systems; programme design and programme cycle management; and monitoring of these systems.
Topic:
Procurement, Logistics, Supply Chains, Monitoring, Humanitarian Response, and Flexibility
Political Geography:
Global Focus

14. Conference Proceedings 6: Defence Production, Sales and Acquisitions

Author:
Philipp H. Fluri, Oleksiy Melnyk, and Nazli Yildirim
Publication Date:
02-2017
Content Type:
Special Report
Institution:
Razumkov Centre
Abstract:
This publication offers the proceedings of Conference 6 on Security Sector Governance in Ukraine. The conference focused on defence production, sales and acquisitions. The objective of the event was to identify current reform priorities and challenges in the area of defence production, sale and procurement; to detect weaknesses in oversight structures and to put forward relevant solutions; to review relevant lessons learned and best practices; and to identify capacity development needs.
Topic:
Security, Defense Policy, Corruption, Governance, Institutions, and Procurement
Political Geography:
Ukraine and Global Focus

15. Countering North Korean Procurement Networks Through Financial Measures: The Role of Southeast Asia

Author:
Eda Erol and Leonard Spector
Publication Date:
12-2017
Content Type:
Working Paper
Institution:
James Martin Center for Nonproliferation Studies
Abstract:
This Occasional Paper is made up of four studies intended to aid Southeast Asian governments and financial institutions in their efforts to counter the financing of weapon of mass destruction programs in North Korea and other states of concern. “Countering North Korean Procurement Networks through Financial Measures: The Role of Southeast Asia,” highlights how North Korea has exploited weak financial controls in the region to advance its nuclear and missile programs. The study reviews Security Council and Financial Action Task Force actions to combat such abuse of the international banking system, as well as the role of US sanctions. Effective implementation of these measures in Southeast Asia, the study concludes, could contribute significantly to constraining North Korea and other proliferant states. “Needed Next Steps to Strengthen Measures to Counter Proliferation Finance,” identifies gaps in international measures to combat proliferation finance, and calls on the Security Council and the Financial Action Task Force to clarify standards for national-level implementation of counter-proliferation-finance rules and to adopt improved enforcement mechanisms. The analysis urges Southeast Asian governments and financial institutions to implement existing measures with greater vigor. “Chinpo Shipping: A Singaporean Financial Agent of North Korea” details how North Korea created an off-shore de facto bank to finance its illegal activities and how Singapore’s courts addressed the first known prosecution for financing proliferation. The case underscores that greater due diligence by banks and regulatory authorities is urgently needed. Finally, “Due Diligence and the Panama Papers Episode: Lessons for Proliferation Finance,” shows how a North Korean bank, denied access to the international banking system, set up an off-shore entity to transact its business. The analysis calls for greatly strengthened enforcement efforts by offshore tax havens, closer scrutiny of clients by banks and law firms conducting international business, and greater efforts by Southeast Asian governments to block sanctions-violating front companies from accessing their banking systems.
Topic:
Law Enforcement, Illegal Trade, Procurement, and Banking
Political Geography:
Asia and North Korea

16. Outlawing State-Sponsored Nuclear Procurement Programs & Recovery of Misappropriated Nuclear Goods

Author:
Leonard Spector
Publication Date:
12-2016
Content Type:
Working Paper
Institution:
James Martin Center for Nonproliferation Studies
Abstract:
State-sponsored illicit nuclear-procurement activities have played a crucial role in advancing the nuclear programs of Iran and North Korea and will undoubtedly be used by the next country that seeks to pursue a nuclear-weapon capability. Such repeated state-sponsored abuse of other states’ export-control systems undermines a key objective of UN Security Council Resolution (UNSCR) 1540, which requires all states to adopt such controls. However, as this study details, this dangerous conduct has never been condemned as a distinct offense against international norms and rules sufficient to trigger sanctions or other punitive action against the offending state. This study proposes to outlaw state-sponsored illicit nuclear-procurement programs through the accretion of declarations by international and multilateral bodies condemning this conduct and expressing the intention to consider punitive measures in future cases where this conduct is observed. Even if consensus on such a declaration cannot be reached in every relevant forum, repeated, well-publicized demands for such action by a group of diplomatically influential aggrieved states can have a significant deterrent effect. Importantly, with illicit procurement activities often serving as an early indication of a clandestine nuclear-weapon program, establishing this activity as an offense against international norms would set the stage for early, concerted action against the next offending state, well before its nuclear program might approach its goal.
Topic:
Nuclear Weapons, Nonproliferation, Illegal Trade, and Procurement
Political Geography:
Global Focus

17. Accountability or not? Managing of public funds in Kosovo Security Sector

Author:
Skender Perteshi
Publication Date:
02-2014
Content Type:
Policy Brief
Institution:
Kosovar Centre for Security Studies (KCSS)
Abstract:
This study aims to analyze financial accountability of Kosovo security sector and advocate for its continuous enhancement. It is focused mainly on the current state of affairs and the trends in this sector. Therefore, the period of 2010-2013 serves as reference point for chronological perspective of this study. Whereas, the scope of this study is restricted to financial management, procurement and auditing of the following institutions: Ministry of Internal Affairs, Kosovo Police, Kosovo Ministry of Kosovo Security Force and Kosovo Security Force. Due to the institutional modalities and the lack of transparency as provided by the law, the research team has intentionally excluded from this study the Kosovo Intelligence Agency, even though it considers that the absence of financial transparency of this institution is in contradiction with the principles of accountability of public funds. The analysis reveals that general legal framework on financial management is also applicable to the security sector. Regardless of the existence of such legal framework, several weaknesses, may be detrimental to public funds as result of loopholes. One of the key dimensions in financial control is internal auditing, which is considered to be in its infancy. Audit units of the security institutions employs very small number of staff compared to the number of staff and volume of work in the financial sector. Therefore, the number of audits remains relatively small targeting only some of the most important areas. One of the main weaknesses of these institutions is the lack of solid written plans. There is also lack of efficiency in executing the expenses as defined in the agenda. This makes the supervision of expenses and financial management in security sector more problematic. Following the same lines, public procurement management is at a concerning stage. Identified problems are mainly related to the evaluation process, lack of clarity of specifications during the application process, as well as many other shortcomings in the supervision of public procurement in the security sector. On the other hand, out of all complaints taken by the Public Procurement Review Body, it 50% of complaints filed by various economic operators have resulted to be grounded on evidence by returning the tendering process to either re-evaluation or re-tendering.
Topic:
Security, Accountability, Procurement, and Public Finance
Political Geography:
Europe, Kosovo, and Balkans