ENABLING FORMALIZATION AND MSMES GROWTH THROUGH PUBLIC PROCUREMENT

MSMEs account for 90 per cent of businesses, 60 to 70 per cent of employment and 50 percent of GDP worldwide. Public procurement, as a public policy tool, has been extended to MSMEs as a way to expand their markets and enhance competitiveness. By providing market opportunities to MSMEs, public procurement can boost MSMEs’ growth, encourage business registration and create decent employment. At the same time, public procurement can be a high-impact instrument for governments, promoting inclusive and sustainable development more broadly. The Virtual Knowledge-Sharing Forum provides a platform for policy-makers and constituents to engage in guided discussions on the potential of public procurement to encourage MSMEs’ growth and support formalization. OBJECTIVES • Raise awareness on the role of public procurement in enterprises formalization, crisis recovery and development of small producers and firms • Share experiences on how public procurement can enhance the impact of formalization policies in different countries and boost MSME’s performance; • Raise awareness and share good practices where public procurement incorporates CONTENT Day 1 – 27 March Day 1 will set the scene of the Forum. The first session of the day will provide a general overview of the context in which MSMEs operate and the challenges they face, including barriers to formalization. It will also include an introduction to the main principles and approaches to public procurement. The second session of Day 1 will focus on how public procurement can play a role in supporting MSMEs’ transition to formality, providing concrete examples and good practices. Day 2 – 28 March Recently public procurement has become increasingly in focus as an instrument of public policy in addition to its traditional role as a cornerstone of good governance. By purchasing wisely, public buyers can promote employment opportunities, social inclusion, and a just transition. Day 2 will focus on sustainable public procurement, raising awareness of its potential benefits and highlighting good practices of socially and environmentally responsible approaches to the procurement process. NUMBER OF WEEKS: 2 days