The use of Targeted Procurement as an Instrument of Poverty Alleviation and Job Creation in Infrastructure Projects

2000 | Public Procurement Law Review

Expenditure in any sector of a nation’s economy will create employment opportunities. Some industries for a given capital flow are more efficient at generating employment opportunities than others. Industries where the potential for the effective substitution of labour for capital equipment and local resources for imports exist, can expect to achieve enhanced performance in the provision of employment opportunities. The Development Policies Department of the International Labour Organisation (ILO) suggest that “employment-intensive works programmes should lead to the development of local productive capacity, through cost-effective instruments targeted at the poor and be placed in the perspective of longer-term economic growth. Investment policies should then be steered toward employment creation and social objectives, and most importantly, be accompanied by measures to ensure cost effectiveness, quality results and local capacity building in both public and private sectors”. This article suggests that Targeted Procurement (, a system of procurement which has been developed in South Africa, can be an important instrument of government policy in infrastructure projects.

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