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Divided loyalties? The role of national IO staff in aid‐funded procurement
Author(s) -
Heinzel Mirko
Publication year - 2022
Publication title -
governance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.46
H-Index - 76
eISSN - 1468-0491
pISSN - 0952-1895
DOI - 10.1111/gove.12650
Subject(s) - procurement , mandate , work (physics) , business , competition (biology) , language change , finance , public relations , marketing , political science , engineering , mechanical engineering , art , ecology , literature , law , biology
Many operational International Organizations (IOs) rely on national staff when implementing projects in member states. However, fears persist that the loyalties of national IO staff may be divided when working in their home countries. The article studies differences in more than 50,000 procurement decisions taken in 1729 projects overseen by World Bank staff working as expatriates or in their home countries. The empirical results show that when staff work in their home countries, national suppliers' probability of winning procurement contracts increases. However, these increases are not driven by restricted procurement processes—that exclude competition—which are often seen as red flags for corruption. Instead, restricted procurement processes seem to be less likely when staff work in their home countries. These findings imply that national IO staff use their country‐specific knowledge to increase the development effectiveness of procurement in line with the mandate of the World Bank.