The Integrity Pact – Harnessing collective action for good governance and business integrity in public procurement

Public procurement – the government purchase of goods, services and works – accounts for a substantial portion of public spending in most countries. It is not only a crucial component of public financial management, but also a critical policy instrument to foster economic growth and achieve sustainable development goals. However, the financial interests at stake, the volume of transactions, and the close interactions between the public and private sectors pose significant mismanagement and integrity risks that might compromise its outcomes.

While increased transparency and digitisation, oversight and control, citizen engagement, and robust law enforcement mechanisms are key to safeguard good governance and integrity in public procurement, they might not be sufficient to effectively address the multiple risks involved, especially in contexts of weak governance and rule of law. Such measures must be complemented with structured and collaborative efforts, in the form of collective action between governments, the private sector and civil society.

The Integrity Pact (IP), conceived by Transparency International in the 1990s, is one of the most popular types of collective action initiative in public procurement. It involves a public agreement between contracting authorities and bidders to commit to transparency and integrity, and a monitoring system providing for independent oversight by civil society. In the past two decades, it has been implemented in at least 28 countries worldwide, bringing benefits to hundreds of different public contracts, from the purchase of medicines to infrastructure development.

Drawing from the wealth of experience and the lessons learned, Transparency International, in consultation with its national Chapters and partners, has developed this blueprint to guide the implementation of future IPs according to good practice. The blueprint is addressed to practitioners in government, the private sector, civil society and development partners wishing to safeguard public procurement projects with strategic policy, financial and social value. The blueprint provides in-depth guidance on the IP implementation process, including:

• Initiating fit-for-purpose IP initiatives.

• Preparing and signing an IP, comprising a public integrity pledge, a corporate integrity pledge, a civil society monitoring agreement, a dispute resolution mechanism, sanctions and incentives.

• Effectively executing IPs, with the support of communications, risk management measures, and monitoring and evaluation.