Can Public Procurement Be a Growth Engine? Insights from the World Bank’s B-READY

The World Bank’s Global Indicators Brief No. 31, developed by the Global Indicators Group under the Development Economics Vice Presidency, in collaboration with institutions like the Government Transparency Institute and the National Bureau of Economic Research (NBER), presents a rigorous analysis of public procurement systems across 50 economies. Drawing from the Business Ready (B-READY) project, the brief introduces a comprehensive, globally comparable set of indicators that assess procurement through the lenses of regulation, digital public services, and operational efficiency. It provides crucial insights for governments aiming to improve transparency, competitiveness, and value for money in procurement.

Public Procurement: A Key Lever for Market Competition

Public procurement, how governments buy goods, services, and works, is one of the most influential economic tools available to any state. It not only drives service delivery but can also shape entire markets. The brief underscores that modern procurement systems, designed to be accessible and transparent, can reduce costs, foster innovation, and enhance sustainability. While 73% of surveyed economies have digital procurement platforms, significant differences in performance remain. Even in regions like the European Union, instances of single-bid tenders are at a decade high, revealing systemic weaknesses in transparency and competition. These findings highlight the importance of not just having procurement laws in place but ensuring they function effectively to create inclusive and competitive markets.

Measuring What Matters: B-READY’s Novel Framework

To overcome data limitations, especially in lower-income settings, the World Bank employed an innovative methodology that uses expert questionnaires and firm-level surveys. These are organized into three core pillars: Regulatory Framework, Public Services, and Operational Efficiency. Each pillar includes a set of indicators, totaling 53, which are aggregated to compute a Composite Procurement Category score ranging from 0 to 100. Initial data from 50 economies offers a broad view across all income levels, with plans to expand the dataset to 180 countries by 2026. This framework not only quantifies procurement performance but also allows for benchmarking and policy diagnosis based on real-world firm experiences and administrative data.

Shared Obstacles and Surprising Leaders

While none of the 50 countries scored zero, suggesting some level of regulatory presence in all, the highest score achieved, by Estonia, was a relatively modest 77.3. This demonstrates widespread opportunities for improvement. Interestingly, the top five performing economies include Rwanda, Georgia, North Macedonia, and Costa Rica, highlighting that sound procurement systems are not the exclusive domain of high-income nations. Rwanda, for example, scores exceptionally well due to its robust digital procurement infrastructure. Conversely, some high-income economies underperform, especially in digitalization and inclusive procurement practices. The report reveals that only 10 economies have introduced gender-responsive procurement mechanisms, and less than half offer incentives for environmentally sustainable bidding, an area with clear room for progress.

Digital Divide and Gender Gaps in Procurement

The Public Services pillar revealed the greatest disparity in scores across income levels. While high-income economies tend to have well-developed e-procurement systems, many lower-income countries lag, particularly in digital features that enhance interactivity and transparency. Only 21% of the 50 economies have adopted digital contract signing, an innovation that improves efficiency and reduces corruption. Sub-Saharan Africa remains particularly behind, with countries like Chad and the Central African Republic scoring zero. This digital gap places a heavy burden on businesses, especially smaller firms located far from administrative centers, who must navigate outdated, paper-based systems. Gender representation also varies significantly. Higher-income economies average around 45% women's participation among suppliers, but this figure drops sharply in others, for instance, to 5% in Iraq and 8% in Pakistan. Such disparities not only reflect broader societal inequalities but also reveal missed opportunities for inclusive economic growth.

The Road Ahead: Reforming for Access, Efficiency, and Impact

While Operational Efficiency had the highest average score among the three pillars, the brief cautions that these improvements are uneven. Many firms across all income levels continue to report administrative burdens when participating in tenders. Payment timelines vary drastically, from 16 days in Georgia to 152 days in Lesotho, highlighting a key constraint for small and medium enterprises that rely on timely cash flow. Surprisingly, even high-income countries like Greece and Barbados were among the worst performers on payment timeliness, showing that wealth does not guarantee efficiency. The report makes it clear that procurement reform should not be limited to legal compliance or superficial digital upgrades. Instead, countries need to invest in user-friendly, transparent systems; simplify procedures; and design policies that intentionally foster participation by underrepresented groups, including women and SMEs.

The B-READY framework offers governments a valuable diagnostic tool for targeted improvements. With clearly defined indicators and international benchmarks, policymakers can identify where to enact reforms, be it through legislation, standard documentation, or better service design. By narrowing gaps in gender representation, digital infrastructure, and administrative complexity, countries can leverage procurement as a true driver of innovation, competition, and inclusive development. The report’s central message is clear: when designed thoughtfully and executed effectively, public procurement can become a cornerstone of sustainable economic transformation, available to all economies, regardless of income level.