The influencing factors of public procurement policy development : the case of Libya

The global economic crises that have emerged over the past few years have put a tremendous strain on (and remains a challenge for) all the major economies of the world. Whilst achieving a balance of retaining front line services for citizens and keeping staff, and making economies fit for purpose in the long term is a challenging task, procurement can have a substantial role to play in achieving this. Sound public procurement policy brings immediate and tangible macroeconomic benefits, where more cost-effective procurement relaxes budgetary pressure and creates fiscal space. The public sector represents about 40-45% of the world’s economies; in some African countries it can be as much as 80%. The public procurement process displays major differences in the way it is organised and operated across the world: different organisational structures; different types of governments; different regulatory, legislative and funding arrangements, and, of course, different cultures. This research aims to look at the influencing factors of public procurement policy and its development in Libya. The revolution domino effect of the Arab Spring in the region in late 2010 occurred because of a number of reasons, predominantly economic, social and political. However, these reasons were mostly magnified by two factors; a young population and high unemployment. Whilst public procurement has become more complex, the balance of the various socioeconomic goals has left officials in government to deal with a wide range of issues. This is particularly true when it comes to the development of the pertinent procurement policies. Procurement policy can contribute immensely to job creation and employment, strengthening of industries, regional involvement, enhancing diversity, securing development aid, and sustainability. According to authorities in he field, the origin of all procurement policy is political. Strategic procurement policy has been adopted by states that have recognised that the procurement function can be developed to harmonise procurement policies with wider government policies. A government (such as Libya’s new Transitional Government which is currently dealing with an ailing economy, high unemployment and social fragility) may use public procurement as a tool for economic development, job creation and, ultimately, stabilisation. The intention of this research is to contribute to the existing body of knowledge on state public procurement policy and its development, whilst emphasising inputs and the transformational processes operating in the construction of public policy in Libya. This research attempts to explain how public procurement policies are developed but also what influences that development, and why. The contribution to knowledge will be achieved by identifying barriers within the Libyan context and reporting back into the current scholarly literature. This research also aims to identify findings that may well be used for legislative advocacy in the current Libyan public policy discourse