In modern societies the government accounts for between thirty and sixty percent of GDP, hence public spending is an important factor in how the economy is organized. Though the government funds many activities, e.g. road construction, often such jobs are contracted out to private businesses. Purchasing goods and services from the private sector by the state is known as public procurement.
While the primary aim of public procurement is to obtain goods and services for the general benefit of society, it is also a powerful tool in pursuing certain policies. We believe that the government should actively use its spending power to achieve certain secondary aims.
We propose that the government should give preferential treatment to:
- worker cooperatives
- domestic producers
If the government is to spend taxpayers’ money, it is reasonable that it should stay in the country. Only if no domestic business is able to provide certain goods or services, foreign suppliers should be considered.
Also the government should exclude certain businesses from public procurement procedures for “bad behavior”. For instance businesses who discriminate against certain people should be black listed. But also companies with disproportional reward differences between the management and the working force should be black listed.