How Does Procurement Compare By Country?

December 17, 2020
Analysis, Procurement

Fiona Hunt.

This simple graph gives us a fascinating insight into the respective size of government spending globally. From the recent report by Open Contracting Partnership and Spend Network, on quantifying global spend, this graph illustrates the dominance of the BRIC countries (Brazil, Russia, India, and China)when it comes to government spending, making up 40% of annual government procurement.

Comparatively, the collective of EU plus UK makes up approx 19%, with the US not far behind on 15%.

In total, these markets, plus the remaining 24% from the rest of the world, make up around US$13trillion annual spending by governments.

It’s almost impossible to conceptualise this number, it’s almost beyond our frame of reference.

But it’s important to think about it, and particularly important to consider the transparency of governments on where they spend money, and with whom.

This is where the work of Open Contracting and Spend Network becomes so important. Their estimates are that just US$362.8 billion was openly published. That’s just 2.8%.

Of that 2.8%, the USA publishes the most contract data with US$117.8 billion or 6.5% of total spend being transparent.

The UK follows closely behind with US$101.8 billion or 28.4% of total spend being openly published.

And by ‘openly published’, or transparent, we mean that all data and documents are disclosed at all stages of the contracting. We know who has bought what from whom and for how much.

Transparency improves competition and provides greater effectiveness as well as improved service delivery.

Consider the global impacts of even the smallest increase in transparency, to economies and society as a whole.

To talk to us about our data, and how we can help you do more business with government, get in touch.

GRAPH NOTES: China dominates the BRIC countries’ public procurement expenditure. The EU27+1 accounts for 19% of the worldwide total, compared to the US’ 15% BRICs = Brazil, Russia, India and China EU28 = All 28 members of the European Union at the time of writing: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom Latin America = Argentina, Bolivia, Colombia, Chile, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay

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