Public Procurement

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Background

Since the 1980s, much of the world has embraced an agenda of market liberalism. Market liberalism endorses unfettered competition, open participation, deregulation and austerity. This agenda – advanced opportunistically with the help of trade treaties-  has allowed for significant wealth creation. It has also, however, introduced new risks for individuals and firms. These risks are acutely felt in moments of crises. Today, countries are attempting to balance the benefits of economic liberalization with risk management strategies. Responses have varied: localizing supply chains, trade tariffs, labour response mechanisms, state enterprises and more. Social procurement – the use of (usually public) purchasing to simultaneously generate social value – is one modest response.

In this moment of global stress, social procurement is an attractive concept. At its heart, it aims to reconcile public tendering with its externalities. Social procurement strategies aim to fulfill public needs (goods, services and construction) and address social objectives. These strategies introduce a wider range of considerations to purchasing, including livable wages, EDI, regional development, worker skill development, and sustainability. Groups, businesses and concepts otherwise left behind under market liberalization can be re-engaged. In this sense, social procurement can serve as a corrective to the challenges of globalization-as-is. With public entity purchasing representing as much as a third of expenditure in OCED countries, there is much to be gained by reflecting on how our public entities buy.

The problem is that public procurement has never been more disciplined and standardized than the present. Trade treaties have liberalized public procurement and narrowed the space for social considerations. Third generation agreements like CETA are among the most robust ever written. This comes at a time in which countries are increasingly looking for policy solutions to economic and social insecurities. The United States, Australia, and Korea are among the countries that have advanced noteworthy social procurement strategies. Canada is joining this growing list with social procurement strategies federally, provincially and among its Crown corporations. Canada is also liberalizing public procurement in significant ways. Here lies the key research puzzle.

Key Empirical Puzzles

 

How can we get the most out of public purchasing while keeping with trade rules?

How have trade agreements curtailed social procurement?

What are Canadian (and other) jurisdictions doing to extract social value from public purchasing?

Research Design

This project can be broadly described comparativist, case-oriented and interpretivist. It houses several different lines of inquiry. In its first phase, I intend to assesses Canadian public entity (federal and provincial) social procurement strategies. Later phases will consider other sectors and countries.

1. Casing

Principally Canadian jurisdictions and their policies. The federal government, Ontario, Quebec, New Brunswick, British Columbia and Crown corporations (federally and provincially) are key. The project will expand to include the MASH (Municipalities, Academic Institutions, Schools and Hospitals) in later phases. This project will also engage international examples for spatial comparisons.

2. Data Collection

Two key data sources. First, public entity procurement policies, guidelines and strategies. Second, public procurement trade treaty chapters and their annexes. Both key sources are publicly available. I will also consult publicly available datasets on awarded contracts.

3. Data Analysis

Varies by the project. Most will incorporate some type of textual analysis. Textual analysis draws our attention to literature and implied meanings of text. This is crucial for understanding (1) the text of policies or trade rules but also (2) their ambiguity.

Recent Output

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CPTPP Report

I contributed to a Canadian Centre for Policy Alternatives Trade and Investment Research Project (TIRP)-led feedback report on the CPTPP. This feedback was submitted in response to Global Affairs own consultations. The report includes recommendations on the public procurement chapter.

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Report

I authored a report with the Canadian Centre for Policy Alternatives on navigating trade commitments to deliver social procurement. The report evaluates federal and provincial (Ontario and Quebec) social procurement strategies.

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Journal Article

I published a journal article with Canadian Public Administration. This article compares Canadian SOE social procurement guidelines alongside trade commitments. I find that Canada has, though institutional bricolage, incrementally narrowed social procurement policy experimentation.