“The Private Sector’s Role in Reforming Public Procurement: The Case of Colombia”

By the end of the 1990s, the pace of anti-corruption work accelerated in various international forums such as the OECD, the WTO, and the UN. In this broader context, the anti-corruption movement also started to gain momentum in Colombia. At the time, the country faced a deep recession and high unemployment. The Colombian Confederation of Chambers of Commerce (Confecámaras) identified corruption – in both the public and private sectors – as one of the key issues to be addressed in order to improve the quality of democratic governance and economic performance.

In this Feature Service article, Ignacio Gómez and Jaime Arteaga discuss how, with assistance from CIPE, Confecámaras became the first private sector organization to undertake a dedicated anti-corruption campaign in Colombia, working with businesses and the government to reform public procurement practices.

Public procurement is one of the most corruption-prone areas, especially in emerging markets where governance and enforcement mechanisms are weak. Confecámaras highlighted the need to change this and inject more transparency in the procurement process. Its Probidad surveys raised awareness of the need for reform; the Ethical Code of Conduct elicited voluntary compliance by hundreds of businesses; integrity pacts signed by dozens of public officials demonstrated a clear commitment to transparency. Finally, Confecámaras’s active engagement in the legislative reform debate resulted in the passage of Law 1150 of 2007, Colombia’s new and improved public procurement law.

Article at a Glance

  • Corruption was long a taboo subject in Colombia.
  • The Colombian Confederation of Chambers of Commerce (Confecámaras) shed light on the extent of corruption by surveying local businesses.
  • Confecámaras focused on improving transparency in public procurement.
  • Confecámaras helped revise Colombia’s public procurement law, and created a platform for public-private dialogue on corruption.

Published Date: April 17, 2009