Procurement Reform Needed to Reduce Government Spending

Tax-supported institutions are ripe for reform so tax dollars can be saved. Officials, elected and appointed, acknowledge this, but seem stumped on how to move beyond rhetoric to action. This is true not only in the United States, but worldwide.

According to the Center for International Development at Harvard University, government procurement accounts for a substantial part of the global economy—10 percent to 15 percent of GDP (gross domestic product) in developed countries and up to 20 percent in developing countries. Reducing government procurement costs would definitely help Greece, Italy and other economies where the government has been living beyond its means. At home, lowering the cost of government spending without reducing its purchasing power would in itself be an economic stimulus.