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Copenhagen Consensus Center

How e-GP save taxpayers tens of billions each year

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Implementing electronic government procurement in Bangladesh would return 663 takas of social good for every taka sent.  Our research highlights the smartest ways to make government procurement more efficient in Bangladesh.

Each year, Bangladesh spends more than Tk. 72,000 crore on government procurement. That includes paying for anything from Padma Bridge to pencils for government offices and everything in-between. Imagine if this process could be done just 1 percent more efficiently - that would save Tk. 720 crore. As it turns out, it can likely be improved by closer to 10 percent, saving billions of takas that could pay for other projects or services.

Government procurement is fraught with inefficiency. Companies and contractors that want to provide goods and services to the government must currently apply for a tender in-person, showing up at a government office to physically file forms. Sometimes, contractors who have political connections are best placed to win bids, or even to block other contractors who might be able to offer better prices. On other occasions, winning bidders subcontract the work out to other firms, taking their own cut along the way and pushing costs higher and higher."

Read more about the research in Bjorn Lomborg’s article in The Daily Star.