By Avner Pariat
Public procurement — the process by which governments purchase goods, services and works — amounted to $11 trillion out of global GDP of nearly $90 trillion in 2018. In other words, 12 percent of global GDP is spent following procurement regulation. And as per an OECD report from 2014, the total volume of public procurement in India is estimated to constitute about 30% of gross domestic product (GDP). So, I think it is safe to say that Public Procurement is a big deal. Meghalaya must be having a larger share of Government Procurement as part of overall GDP but data in this regard is sparse. But it is very clear that governments are the single largest purchaser of goods and services anywhere, anytime. Thus, governments have tremendous power to negotiate effectively and to secure the best possible outcomes. Of course, prices are surely embedded in this idea of “best possible outcomes” but they cannot be the only determinant for procurement decisions. There are numerous other factors to consider and we might turn to the principles of DEI (Diversity, Equity and Inclusion) to help our own government make better decisions for the “best possible outcomes”.
Thus far, in spite of numerous recruitments of procurement professionals/specialists for the various government departments and para-governmental agencies like MBDA, the procurement policy within the state seemed fixated on the task of purchasing without giving any consideration whatsoever towards DEI. But why is DEI so important? Let us look at the constituents of this concept to better understand.
First up is Diversity. Diversity involves all the ways that people are different, including the various characteristics that distinguish one demographic from another. Diversity contrary to popular belief is a good thing and must include those demographics who aren’t broadly represented in society or certain industries and sectors. Perhaps the most important element of Diversity in the context of Meghalaya would be along the lines of one’s ethnicity. For the sake of simplicity let us look at ethnicity through the broad categories of Tribal and Non-tribal. On this front, Meghalaya is making good strides because – as compared to 20 or so years ago – more and more Tribals have benefitted from Government Procurement. It is no exaggeration to say that as of 2023, the Tribal population is doing much better for itself and in the years to come, seems set to achieve even better results in terms of participation and professionalism. I will not talk about the role bribery and corruption plays in all this because even if we take those into account, the Tribal population seems as capable and competent as its Non Tribal counterpart nowadays!
The second constituent of DEI is Equity. Equity aims to ensure equal treatment, access, opportunity and advancement for people. Equity must identify and remove barriers that prevent some groups from fully participating in society or certain industries and sectors. To promote equity, the government must focus on understanding the causes that underlie disparities in society. The aim of equity is to promote justice, fairness and impartiality in the way things are done and in the distribution of resources within social structures, systems and institutions. In our particular context, one’s Socioeconomic status might just be the most important consideration. That is to say that in awarding tenders, the government must diligently consider this parameter. It is not always up to one’s ability to show money in the bank as per financial. I have encountered many firms and individuals who might be as capable as those already in the fray but who are left out because they have no money. Similar to the issue of experience, firms and individuals must be allowed to accumulate capital. As Meghalaya has no Private Sector to speak of, Government Procurement is an important tool to correct structural inequality and an ally in battling the endemic poverty that surrounds us in Meghalaya. Favouring SHGs and Cooperatives in bids would be a positive step and upskilling them by way of encouraging their participation with more professional firms from outside through consortiums and joint ventures would be even better.
Finally, when we turn to Inclusion, the last constituent of DEI. Inclusion is the ethical imperative that our government must act upon. An inclusive government supports and embraces. I know how weird it sounds that I talk about a government having ethics but this is what we must aspire for regardless of how impractical it sounds. Having Inclusion as the foundational goal for all procurement processes would yield positive results for the majority not just a few.
The problem in Meghalaya as I see it is that the tendering process is broken. This has allowed for just a few to dominate and continue to dominate all work dealing with government contracts. Big players like Dur Construction, Singhahu Press, Rockboard, Elk Pharma (cheekily based on real firms) who are the main players in their respective sectors benefit from being first movers. They have the advantage of having the fat wallets to always be relevant for any work that comes up. This yields tremendous financial windfalls for their owners but the government must be actively seeking to re-distribute its resources not to concentrate them into a few hands. This has always been my belief. The large loans we are taking, from World Bank, ADB etc are going to the top 1% (must be smaller than that for a state like Meghalaya) and are not benefitting the starving millions. Can Conrad Sangma afford such bad practices? Can we afford to allow control to slip from the hands of the people as our state turns into an oligarchy?
Everyone I know in the government wants to see “good work” but they don’t ask if it is good for everyone. In our shortsightedness, we have sown the seeds of instability and civil unrest. We have sown the seeds of the French Revolution and we now wonder why people are becoming more violent, more agitated and bolder. What happened to Ampareen Lyngdoh, to the Chief Minister himself, are not isolated incidents. They cannot be dismissed so easily. There is a pain that people are feeling, there is an injustice which is real.
However, there is still hope. The government can change the direction of its Procurement policy and consequently change the behaviour of its own citizens. This requires involving stakeholders, not shareholders in its consideration. I refuse to believe that in a state with a population of 30+ lakh, only a few privileged players are the best at their jobs and should be awarded contract after contract. It is statistically impossible. They have made their money; it is now the time to cut them loose and to ensure others are also able to grow and thrive. If we are able to do this, it will mean that we are walking the talk on making Meghalaya truly egalitarian. Within Meghalaya, we have been very fortunate to have been schooled in the wonderful indigenous ideas of “imlang sahlang”, which I interpret as “live equally, reside equally”. DEI is not a new concept to us. Perhaps it is time to talk about another idea: “kamailang kiewlang”, namely to “earn equally, climb equally”
(The writer can be contacted at [email protected])