Increasing Local Content in the Procurement of Infrastructure Projects in Low Income Countries

This document from Engineers Against Poverty discusses several actions that can be taken in order to enable local development through infrastructure projects. It discusses how to promote local content as a policy objective and what steps can be given forward to a practical implementation of local content in infrastructure projects.

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Emerging Policy Issues: Localization Barriers to Trade

Despite the predominately negative evidence of the impact of local content requirements on trade, they continue to play a significant role in trade policy. This has been particularly true since the financial crisis of 2008. The work presented here provides new evidence of the detrimental effects these policies have on the imposing country’s own economy. Most empirical studies have focused on the long run inefficiencies associated with LCRs, notably in the effected sector.

Local Content in Policies in the Oil and Gas Sector

This document from the World Bank presents the results of a study done on the local content policies in the oil and gas sector. It explains how these type of policies although with the potential to “stimulate broad-based economic development”, have showed mixed results, and what their effects are in certain sectors of the economy.

The document goes through several topics such as what local content policies are; arguments in favor and against them; different local content policy instruments that have been used by petroleum-producing countries; and case-studies.

A Guide to Getting Started in Local Procurement

This is a Guide prepared by the International Finance Corporation in collaboration with Engineers Against Poverty that aims to help companies, interested in creating linkages with local small and medium enterprises, create a policy that engages local content in their procurement processes.

The document is divided in 4 chapters which are meant to be the steps to follow for a successful local content policy. Those are: 1. Company self-assessment; 2. Business drivers; 3. Defining local; and 4. Policy.

 

A_Guide_to_Getting_Started_Local_Procurement_EN_2011.pdf

Victorian Industry Participation Policy

The Victorian Industry Participation Policy (VIPP) was passed as an effort of the Victorian Government to create a flow of work opportunities for the local industries (small and medium enterprises) by giving them the right legal framework to participate in public procurement in an even field. “VIPP requires government departments and agencies to consider competitive local suppliers, including SMEs, when awarding contracts valued at: $1 million or more in regional Victoria, or $3 million or more in metropolitan Melbourne or for state-wide activities.”