ART - Examining Discriminatory Procurement Practices in Developing Countries 2006

The document examines discriminatory procurement practices in developing countries and explores the benefits and drawbacks of opening up public procurement markets to all suppliers regardless of their country of origin. The paper discusses how governments often favor local suppliers over foreign firms in order to stimulate infant industries, foster underdeveloped regions, and create employment. However, these discriminatory practices can be seen as a form of protectionism and hinder free trade. The document also highlights the challenges faced by developing countries in competing internationally due to high production costs and lack of expertise. The paper raises questions about whether removing discriminatory practices would benefit developing nations given their limited capacity to compete globally and suggests recommendations for developing countries to open up their procurement markets while still addressing their economic and social interests. The document also discusses global efforts towards opening up public procurement markets, including the Agreement on Government Procurement (GPA) which aims to eliminate preferential treatment of national suppliers in procurement deals. The overall goal is to achieve greater liberalization and expansion of world trade, improve the international framework for the conduct of world trade, and avoid protection of domestic products and services.