Transparency and Digital Government: The Impact of COMPR.AR in Argentina

Michele, Roberto de; Pierri, Gastón

doi:10.18235/0002335

Cited by 3 publications

(3 citation statements)

References 1 publication

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“…In South Korea, the duration of the processing of bids, from the receipt to the validation to the selection of the winning bid, was brought down from an average of 30 hours to 2 hours (Luijken & Martini, 2014). The adoption of the COMPR.AR system in Argentina led to strong efficiency gains: on average, the duration of the public procurement process fell by over 11 days (De Michele & Pierri, 2020). BAObras, a public transparency platform for the procurement of over 1100 public works projects for a planned US$3.5bn facelift for the city of Buenos Aires in Argentina, reduced the time taken to share data by the city's authorities by 93% (Open Contracting Partnership, 2021b).…”

Section: Benefits Of E-gpmentioning

confidence: 99%

The Investment Case for E-Government Procurement: A Cost–Benefit Analysis

Bosio,

Hayman,

Dubosse

2023

J. Benefit Cost Anal.

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In almost every country, government is the largest buyer of works, goods, and services from the private sector. Through the laws and practice of public procurement, governments create competition among firms, thus optimizing public expenditure. However, public procurement is often associated with inefficient allocation of resources and corruption. One method to reduce inefficiencies and abuse in public procurement is the use of e-government procurement (e-GP) platforms. Yet nearly 40% of countries—mostly low- and lower-middle income countries—do not have functioning e-GP platforms. Cost–benefit analysis is used to make the investment case for the development and integration of e-procurement systems in low- and lower middle-income countries. The costs of setting up an e- GP system include an initial investment of $9.03 million, on average, for the planning, design, and build phases spread over a 5-year period. Annual operating and maintenance expenses during pilot and deployment phases are estimated at $1.1 million annually. In total, it is estimated that the net present value of costs to design, build, test, deploy, and operate a robust e-GP system is $16.7 million for a typical low- and middle-income country (at an 8% discount rate). While there are many tangible benefits of e-GP, the benefit assessed here is the reduction in the prices of goods, works, and services paid by government buyers. Using the average percentage reduction in procurement prices of 6.75%, the savings from an e-procurement system are valued at $637.9 million and $5.2 billion for low- and lower middle-income countries, respectively. The benefit–cost ratio of implementing an e-GP system in the average low-income country ranges from 8 to 58 and is 142 to 473 for a lower middle-income country. The size of the procurement market, the reduction in procurement prices, the duration of the implementation process, and the penetration rate of e-GP throughout government are principal determinants in the return on investment.

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Section: Benefits Of E-gpmentioning

confidence: 99%

The Investment Case for E-Government Procurement: A Cost–Benefit Analysis

Bosio,

Hayman,

Dubosse

2023

J. Benefit Cost Anal.

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“…However, the literature in Latin America and the Caribbean is still at an early stage and more evidence is needed to gain a better understanding of the connection between technology, incentives, and government expenditure and revenue collection (Pierri and de Michele 2020).…”

Section: Ideas For Future Workmentioning

confidence: 99%

What Works to Improve Lives?: What Works to Improve Government Efficiency, Tax Compliance, and Financial Resilience

Bosch,

Frisancho,

Gerardino

et al. 2023

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This publication is one of a series of five monographs produced by the Inter-American Development Bank to take stock of the lessons learned from impact evaluations of investments supported by the IDB Group for over a decade across a wide range of economic and social development sectors. In light of increasing demand in recent years for higher-quality public services in Latin America and the Caribbean, this monograph examines programs and policies that can help governments improve how they fund and provide these services to their people. Specifically, it reviews the evidence on ways to improve government efficiency, public spending, taxation, and financial resilience. Key lessons on “what works” include using information and communication technology to improve government processes and reduce costs, increasing tax compliance through architectural or messaging “nudges,” and identifying innovative ways to encourage citizens to save.

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“…In the area of efficiency of public spending, de Michele and Pierri (2020) evaluate the effects of a program to increase transparency and efficiency in public procurement processes in Argentina through the introduction of COMPR.AR, a digital platform that allows all public procurement processes to be carried out electronically (AR-L1303). The authors use a difference-in-differences identification strategy based on the gradual rollout of the platform across various public offices to compare public procurement transactions through COMPR.AR with transactions based on preexisting processes.…”

Section: Using Evidence To Fine-tune Program Designmentioning

confidence: 99%

Development Effectiveness Overview (DEO) 2023

2023

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The Development Effectiveness Overview (DEO) is an annual report produced by the IDB Group to share the results and impact of its work in Latin America and the Caribbean. It showcases the IDB Group's contributions towards the development of its 26 borrowing member countries in the region and the Sustainable Development Goals, as well as progress against key institutional metrics in its Corporate Results Framework.

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Transparency and Digital Government: The Impact of COMPR.AR in Argentina

Cited by 3 publications

References 1 publication

The Investment Case for E-Government Procurement: A Cost–Benefit Analysis

The Investment Case for E-Government Procurement: A Cost–Benefit Analysis

What Works to Improve Lives?: What Works to Improve Government Efficiency, Tax Compliance, and Financial Resilience

Development Effectiveness Overview (DEO) 2023

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