Government contracting of projects and services, which represents trillions of dollars of expenditure and about 15% of the global GDP, is often prone to inefficiency and corruption. Dishonesty and mismanagement can result in the downfall of projects and of companies that receive contracts, as recent developments in Brazil have shown. Recent innovations in open contracting policies and practices have aimed to combat these issues by implementing new standards of fairness and transparency.
This event highlighted how open contracting benefits investors by reducing the risk of corruption scandals, fortifying government and company revenues, and ultimately supporting growth and development of a strong business environment. The discussion covered the challenges in enacting open contracting and how investors can encourage governments and companies to adopt better contracting practices, reducing risk and increasing reward for all stakeholders.