OCTOBER 25, 2020

Challenges in public procurement in the face of COVID-19

COVID

With a global record of 40 million people infected and 1.1 million deaths in 188 countries, COVID-19 is a major challenge to public policies. Rafael Landivar University and UNOPS discussed the impact of the pandemic on the health sector procurement in Guatemala

For Guatemala, the impact of COVID-19 on the public health system has brought to light elements that the sector has been dragging on for years, such as poor investment, low quality care, gaps in coverage, weak governance, and the need to improve procurement mechanisms and transparency in government management.

Rafael Landivar University (URL) through the Faculty of Political Science and the United Nations Office for Project Services (UNOPS), as the UN entity responsible for procurement, infrastructure, and project management, conducted the Virtual Talk “COVID- 19 and Public Health Procurement”.

The virtual event that took place on October 21, 2020 was designed to create a space for discussion between the academic community and guests on public emergency procurement in the health sector, and share an analysis of the situation in Guatemala in order to meet the health needs of the population.

The Director of UNOPS in Guatemala, Andrea Calvaruro, said during his presentation that “as the pandemic continues to spread around the world, for 10 months, the countries continue to need the same thing (clinical equipment and medical supplies, tests, masks and

personal protection kits). This, not to mention the treatment or vaccine, once it is developed. Hence, the importance of public procurement and urgent investment in quality health services”.

However, the Director of UNOPS emphasized that the current market for inputs, drugs and clinical equipment to deal with the pandemic presents an unstable picture and distortions related to price increases, shortages, as well as non-transparent practices.

For her part, the Dean of the Faculty of Political Science and Social Affairs of Rafael Landivar University, Magister Lourdes Balconi said, “The first line of impact of the pandemic has been on health systems. The coronavirus emergency exposed the significant limitations and disabilities of the state, whose consequences are evident. The main challenge will be an approach that recognizes and promotes best practices with transparency in public procurement and urgent investment in quality health services, ensuring horizontal and vertical control.”

Pandemic and Procurement

In the coming weeks, the second wave of infections and the possible surge in cases of coronavirus in Latin America are expected. The market remains unstable, and efforts are now directed toward the potential vaccine, generating a new “hoarding” picture of the richest countries. This puts countries like Guatemala at a disadvantage.

In addition, at the end of August 2020, the Ministry of Health and Social Welfare (MSPAS) in a press conference announced the execution of 43.5% of the fiscal budget earmarked for COVID-19. IGSS, for its part, considers investments in excess of Q/900 million with a percentage of execution higher than 77%, as of October 2020, through different mechanisms and contracting modalities.

However, during the period of national calamity, it has been seen that several of the public tenders and contests to buy inputs, tests and equipment have drawbacks.

“Evidence shows that innovations must be incorporated into Guatemala’s state procurement system; also make procurement plans and contract modalities of public entities more flexible, to encourage competition from companies and suppliers in the health sector, without compromising quality and ensuring supply. Also, incorporate

market intelligence criteria, price analysis and reasonableness, loyalty of the supply chain and supplies, building capacities to face emergencies and, all this, framed in the approach of Fair and Equitable Public Management” said Calvaruso.

UNOPS, together with the Rafael Landivar University (URL) and the Universidad del Valle de Guatemala (UVG), have strengthened their institutional relationships to foster academic and scientific debate on contemporary problems in Guatemala and the international arena, under the approach of Fair and Equitable Public Management and to meet the Sustainable Development Goals (SDGs).

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