Lorena Rivero, Ministry of Finance and Public Credit, Mexico
Kathrin Frauscher, Open Contracting Partnership (OCP)
Inefficiency and corruption in public procurement represent a massive fiscal burden for emerging markets. Out of the $9.5 trillion spent each year on government procurement (15% of the global GDP), the UN estimates that corruption and fraud may amount to 20-25%.
Mexico has been at the forefront of addressing this problem through an innovative approach known as Open Contracting, which strengthens accountability standards and opens public procurement data to public scrutiny. Mexico was one of the first countries to express an interest in implementing the Open Contracting Data Standard and was among the first countries to validate the standard in 2014. Mexico has been active in exploring open contracting in such areas as energy, health procurement and public-private partnerships (PPPs). Together with civil society, the Mexican Government has helped lead international efforts to promote understanding as to the benefits of open contracting and how it may be implemented.
This informal discussion was designed to provide investors with a unique introduction to Mexico’s initiatives and the lessons learned from its wide-ranging efforts in open contracting. It opened with a short presentation by the Mexican Ministry of Finance and Public Credit and brief remarks by the Open Contracting Partnership, followed by a question-and-answer session with investors.