THE CHALLENGES OF IMPLEMENTING SOCIAL PUBLIC PROCUREMENT IN DEVELOPING COUNTRIES

Muqaddima davlat xaridlariningko‘p qirrali mohiyatini tushunish uchun asosyaratadi, uning kengroq ijtimoiy, iqtisodiy vaekologik maqsadlarga erishishda oddiy moliyaviymaqsadlardan tashqari rivojlanayotgan rolinita‘kidlaydi. Unda “ijtimoiy davlat xaridlari”tushunchasi jamiyatga ijobiy ta‘sir ko‘rsatishuchun xarid qobiliyatidan foydalanish vositasisifatida, turli mamlakatlar va ilmiy maqolalardanmisollar keltirgan holda tanishtiriladi Tezis rivojlanayotgan mamlakatlarda ijtimoiy davlatxaridlarini (SPP) amalga oshirish muammolarinio‘rganishga qaratilgan bo‘lib, barqaror rivojlanishgako‘maklashish va tengsizlikni kamaytirish uchunushbu muammolarni tushunish muhimliginita‘kidlaydi. Keyingi bo‘limlarda institutsionalnazariya, ijtimoiy davlat xaridlari konsepsiyasi, uniamalga oshirishda duch keladigan muammolar vaGana, Keniya va Bangladeshdan to‘siqlar va ularnibartaraf etish bo‘yicha potentsial strategiyalarningbatafsil tahlilini taklif qiladigan amaliy tadqiqotlarhaqida to‘liq ma‘lumot berilgan. Xulosa aniqlanganasosiy muammolarni umumlashtiradi va ularni halqilish bo‘yicha tavsiyalar beradi, bunda me‘yoriyhuquqiy bazani mustahkamlash, salohiyatni oshirishva dunyo bo‘ylab mas‘uliyatli xarid amaliyotini targ‘ibqilish bo‘yicha xabardorlikni oshirish tashabbuslarimuhimligini ta‘kidlaydi. Umuman olganda, kirish vakeyingi bo‘limlar tadqiqot mavzusini batafsil ko‘ribchiqadi, rivojlanayotgan mamlakatlarda ijtimoiydavlat xaridlari bilan bog‘liq murakkabliklarni hartomonlama tekshirish uchun asos yaratadi

DOI: https://doi.org/10.5281/zenodo.15044898

THE CHALLENGES OF IMPLEMENTING SOCIAL PUBLIC PROCUREMENT IN DEVELOPING COUNTRIES

Shermukhammad Head of the Foreign Investment Procurement Control Department ABDUKHALILOV of JSC “Uzbekhydroenergo”

Abstract: The introduction lays the groundwork for understanding the multifaceted nature of public procurement, highlighting its evolving role beyond mere financial goals toward achieving broader social, economic, and environmental objectives. It introduces the concept of “social public procurement” as a means to leverage purchasing authority for positive societal impacts, citing examples from various countries and scholarly works. The thesis statement focuses on investigating the challenges of implementing social public procurement (SPP) in developing countries, emphasizing the significance of understanding these challenges for promoting sustainable development and reducing inequality. The subsequent sections provide a comprehensive review of institutional theory, the concept of social public procurement, challenges faced in implementation, and case studies from Ghana, Kenya, and Bangladesh, offering a detailed analysis of barriers and potential strategies for overcoming them. The conclusion summarizes the key challenges identified and proposes recommendations to address them, stressing the importance of regulatory strengthening, capacity building, and awarenessraising initiatives for fostering responsible procurement practices globally. Overall, the introduction and subsequent sections provide a thorough overview of the research topic, setting the stage for a comprehensive examination of the complexities surrounding social public procurement in developing nations.

Keywords: Public procurement, Social public procurement (SPP), Best value for money (BVM), Social linkages, socially responsible public procurement (SRPP), Affirmative action programs, Set-aside programs, Institutional frameworks, Environmental Preferable Purchasing Program (EPPP), Sustainable Public Procurement Program (SPPP), Employment, Social value, Sustainable development, Inequality, Capacity building, Transparency, Corruption, Poverty, Political influence.

RIVOJLANAYOTGAN MAMLAKATLARDA IJTIMOIY DAVLAT XARIDLARINI AMALGA OSHIRISH MUAMMOLARI Shermuhammad ABDUXALILOV “O‘zbekgidroenergo” AJ Xorijiy investitsiyalar bo‘yicha xaridlarni nazorat qilish bo‘limi boshlig‘i

Annotatsiya: Muqaddima davlat xaridlarining ko‘p qirrali mohiyatini tushunish uchun asos yaratadi, uning kengroq ijtimoiy, iqtisodiy va ekologik maqsadlarga erishishda oddiy moliyaviy maqsadlardan tashqari rivojlanayotgan rolini ta‘kidlaydi. Unda “ijtimoiy davlat xaridlari” tushunchasi jamiyatga ijobiy ta’sir ko‘rsatish uchun xarid qobiliyatidan foydalanish vositasi sifatida, turli mamlakatlar va ilmiy maqolalardan misollar keltirgan holda tanishtiriladi.

ПРОБЛЕМЫ РЕАЛИЗАЦИИ СОЦИАЛЬНЫХ ГОСУДАРСТВЕННЫХ ЗАКУПОК В РАЗВИВАЮЩИХСЯ СТРАНАХ Шермухаммад АБДУХАЛИЛОВ Начальник отдела контроля закупок иностранных инвестиций АО “Узбекгидроэнерго”

Аннотация: Введение закладывает основу для понимания многогранной природы государственных закупок, подчеркивая их развивающуюся роль, выходящую за рамки простых финансовых целей, в достижении более широких социальных, экономических и экологических целей. В нем представлена концепция «социальных государственных закупок» как средства использования

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Tezis rivojlanayotgan mamlakatlarda ijtimoiy davlat xaridlarini (SPP) amalga oshirish muam­molarini o‘rganishga qaratilgan bo‘lib, barqaror rivojlanishga ko‘maklashish va tengsizlikni kamaytirish uchun ushbu muammolarni tushunish muhimligini ta’kidlaydi. Keyingi bo‘limlarda institutsional nazariya, ijtimoiy davlat xaridlari konsepsiyasi, uni amalga oshirishda duch keladigan muammolar va Gana, Keniya va Bangladeshdan to‘siqlar va ularni bartaraf etish bo‘yicha potentsial strategiyalarning batafsil tahlilini taklif qiladigan amaliy tadqiqotlar haqida to‘liq ma‘lumot berilgan. Xulosa aniqlangan asosiy muammolarni umumlashtiradi va ularni hal qilish bo‘yicha tavsiyalar beradi, bunda me’yoriy-huquqiy bazani mustahkamlash, salohiyatni oshirish va dunyo bo‘ylab mas’uliyatli xarid amaliyotini targ‘ib qilish bo‘yicha xabardorlikni oshirish tashabbuslari muhimligini ta’kidlaydi. Umuman olganda, kirish va keyingi bo‘limlar tadqiqot mavzusini batafsil ko‘rib chiqadi, rivojlanayotgan mamlakatlarda ijtimoiy davlat xaridlari bilan bog‘liq murakkabliklarni har tomonlama tekshirish uchun asos yaratadi. Kalit so‘zlar: Davlat xaridlari, Ijtimoiy davlat xaridlari (IDX), Pulning eng yaxshi qiymati (PYQ), Ijtimoiy aloqalar, Ijtimoiy mas‘uliyatli davlat xaridlari (IMDX), Tasdiqlovchi harakatlar dasturlari, Ajratib qo‘yiladigan dasturlar, Institutsional asos, Yashil afzal qilingan xaridlar dasturi (YAXD), Barqaror Dastur davlat xaridlari (BDDX), bandlik, ijtimoiy qiymat, barqaror rivojlanish, tengsizlik, salohiyatni oshirish, oshkoralik, korrupsiya, qashshoqlik, siyosiy ta’sir.

покупательной способности для положитель­ ного воздействия на общество, приводятся примеры из разных стран и научные работы. В тезисе основное внимание уделяется исследованию проблем реализации социальных государственных закупок (СГЗ) в развивающихся странах, подчеркивая важность понимания этих проблем для содействия устойчивому развитию и сокращению неравенства. В последующих разделах представлен всесторонний обзор институциональной теории, концепции социальных государственных закупок, проблем, с которыми приходится сталкиваться при их реализации, а также тематические исследования из Ганы, Кении и Бангладеш, предлагающие подробный анализ барьеров и потенциальных стратегий их преодоления. В заключении суммируются выявленные ключевые проблемы и предлагаются рекомендации по их решению, подчеркивая важность усиления нормативно-правовой базы, наращивания потенциала и инициатив по повышению осведомленности для содействия развитию практики ответственных закупок во всем мире. В целом, введение и последующие разделы дают подробный обзор темы исследования, создавая основу для всестороннего изучения сложностей, связанных с социальными государственными закупками в развивающихся странах.

Ключевые слова: Государственные закупки, Социальные государственные закупки (SPP), Лучшее соотношение цены и качества (BVM), социальные связи, Социально ответственные государственные закупки (SRPP), Программы позитивных действий, Программы резервирования, Институциональные рамки, Программа экологических предпочтительных закупок (EPPP), Программа устойчивых государственных закупок (SPPP), Занятость, социальная ценность, устойчивое развитие, Неравенство, Наращивание потенциала, прозрачность, коррупция, бедность, поли­ тическое влияние.

INTRODUCTION: The cost and quality of public works, goods, and services are influenced by public sector spending. It may also have an impact on human rights, environmental, and social protection measures (Ludlow, 2016). Public procurement can be used for goals more than only making financial goals. These goals are often referred to as “social linkages.” In recent decades, there has been a growing movement against the best value for money (BVM) paradigm in favor of social aspects (Cravero, 2017). The principles of international free competition and nondiscrimination were once upheld by public procurement rules. The policy and practice of public procurement in the modern era have given rise to considerations other than BVM (only economic). Conceptually, the process by which public procurers use their purchasing authority to produce favorable social, economic, and environmental effects is known as “social public procurement”

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(Saussier and Vidal, 2021). According to the European Commission’s 2010 Buying Social guidelines: The goal of socially responsible public procurement is to influence the market and lead by example. Public authorities can support job opportunities, decent work, social inclusion, accessibility, design for everyone, ethical trade, and wider compliance with social standards by making intelligent purchase decisions. A variety of scholarly works, such as those on corporate social responsibility, public procurement, employability, skills shortages, poverty and social deprivation, and social value, are the sources of socially responsible procurement (Farag and McDermott, 2015; Burke and King, 2015, Georghiou et al., 2014), MacFarlane, 2014).). It is noteworthy that the utilization of public procurement as a tool for policy implementation to achieve secondary goals is a widespread occurrence that may be observed globally (Brammer and Walker, 2011; Qiao et al., 2009). Furthermore, many nations have robust institutional frameworks supporting this practice. Following are some examples of the institutional framework and directives adopted by some countries on social public procurement: the United States’ Environmentally Preferable Purchasing Program or Small Disadvantaged Business Preference programs; Brazil’s Sustainable Public Procurement Program; Australia’s Aboriginal Participation in Construction Policy; and the United States State of New South Wales (Australia)’s 2014/24/EU and 2014/25/EU European Directives on public procurement. (Raj et al., 2020). Other social connections exist in public procurement, such as “Affirmative Action Programs” in the US that support veterans, women, minorities, and people with disabilities; in addition, specific set-aside programs exist that are limited to less competitive businesses, such as businesses owned by women and minorities, businesses operating in economically disadvantaged areas, organizations, etc. Set-asides support employment and diversity among suppliers, which are connected through social procurement. In the framework of socially responsible public procurement (SRPP), “social linkages” have been classified into five different categories. These include: (I) using procurement to enforce anti-discrimination laws in the workplace; (II) using procurement to advance a more comprehensive understanding of distributive justice, particularly through affirmative action in the workplace; (III) using procurement to encourage greater entrepreneurial ventures among marginalized groups defined by gender or ethnicity; (IV) incorporating requirements in procurement contracts meant to ensure justice and equity during the transition of public to private sector services; and (v) using procurement as a means of applying pressure on businesses that operate internationally to adhere to equality standards. (McCrudden 2015). However, integrating social procurement initiatives with overall procurement strategies presents another layer of complexity. The rigorous analysis and cooperation required to balance social aims with standard procurement priorities, such as cost-effectiveness and quality, are essential. Legal and regulatory frameworks may not fully support or incentivize social procurement practices, adding legal challenges and constraints for procurement officers (Mukumba, & Shakantu, 2024). Risk management becomes crucial as social procurement introduces additional risks related to supply chain disruptions, reputational damage, and legal liabilities. Collaborative efforts, capacity training, investments in technology and data infrastructure, as well as the creation of favorable legal frameworks and incentives for social procurement projects, are necessary for effectively tackling these difficulties (Loosemore and Lim, 2017).

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Public procurement, according to Cravero (2017), can achieve a wide range of social objectives, including inclusion, accessibility, equal opportunity, and employment. Numerous developed nations have established national legal frameworks for particular preferential programs that support socioeconomically disadvantaged groups and minorities when they participate in tender processes. The set-aside strategy, created in the United States and Canada, is an illustration of a preferred program. The Australian State Government of Victoria requested that all of its departments and agencies include a defined social procurement framework and strategy into their purchasing activities when it unveiled a social procurement framework and related regulations in 2018 (Victorian Government, 2022). Since then, similar programs have been launched in other Australian states, including Queensland (Queensland Government, 2021), Western Australia (Government of Western Australian), and New South Wales (Government of New South Wales, 2022). As a result, a growing number of initiatives incorporate social value-creation components into their operations throughout the Australian continent. The Public Services (Social Value) Act 2012 (2021) mandates that public entities in the United Kingdom consider the potential improvements to economic, social, and environmental well-being that could result from their proposed purchases. According to a policy procurement note (Procurement Policy Note 06/20 (2020), all central government departments and agencies are required to assess social value for the entire procurement process using a “minimum overall weighting of 10%).” Developing countries, however, encounter institutional barriers when attempting to apply social procurement practices. Behravesh, Darnall, and Bretschneider (2022) claim that public organizations lack incentive to implement SPP. Furthermore, a number of educational institutions are doubtful about the necessity for companies to integrate sustainable practices into their procurement processes, as doing so could limit their immediate effectiveness or result in extra costs. Moreover, earlier research indicates that governments run the risk of falling short of their ever more ambitious targets if the ability of participants in the social procurement ecosystem to provide social value is not considered (Loosemore, et al, 2020). Capacity issues have been associated with obstacles that important social procurement stakeholders encounter when attempting to realize the potential social benefits of social procurement laws. Therefore, it should come as no surprise that social procurement initiatives as a whole have not produced the entire range of societal advantages that their designers intended, particularly in developing nations (Natoli, Lou & Goodwin, 2023). Thus, the goal of this study is to investigate the difficulties associated with adopting social public procurement in developing nations.

This study generally identifies and discusses the challenges of implementing social public procurement in developing countries. The specific objectives include:

I. To examine the barriers to the implementation of social public procurement in developing countries; II. To develop strategies for overcoming implementation challenges of social public procurement in developing countries.

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1. Research Questions In line with the objectives, the study formulated the following research questions: I. What are the barriers to the implementation of social public procurement in developing countries? II. What strategies can be developed to overcome implementation challenges of social public procurement in developing countries?

2. Significance of the study It is critical to comprehend the difficulties in adopting Social Public Procurement (SPP) in developing nations in order to promote sustainable development and lessen inequality. By encouraging ethical labor practices, assisting small businesses in the community, and lessening the environmental effect of public procurement operations, SPP programs have the potential to create positive social and environmental change. Furthermore, researching the difficulties in putting SPP into practice in underdeveloped nations promotes international collaboration and knowledge sharing. Adopting SPP principles presents similar hurdles for many developing countries; exchanging best practices, insights, and creative solutions helps hasten the process of overcoming these impediments. To fully realize SPP’s potential in promoting favorable social, economic, and environmental outcomes and advancing a more just and sustainable global community, it is imperative to comprehend and tackle the obstacles associated with its implementation in developing nations. Academics and practitioners alike should take an interest in researching the difficulties associated with adopting Social Public Procurement (SPP) in developing nations. Understanding these difficulties offers academics rich ground for investigation, evaluation, and theoretical growth. It provides academics with the chance to explore the intricacies of institutional dynamics, policy frameworks, and procurement processes in developing nations.

3. Organization of the Study The five main sections of this study are presented here. The study’s history, problem description, objectives, and organizational framework are all covered in the first section. Section three outlines the methods utilized to achieve the study’s objectives concerning the type of data used and the form of data collection. Section two discusses the literature that has already been written about the subject area and presents the theoretical framework for the study. The analysis and discussion of the study’s findings in light of other findings are presented in the final two parts. The final section concludes by summarizing the study’s findings and their implications for policy.

The Background and Explanation of the Issue: 1. Institutional Theory John Meyer and Brian Rowan developed institutional theory in the late 1970s to investigate how organizations interact with, are influenced by, and were formed by their local, regional, national, and international contexts. The institutional

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theory clarifies why some actions are selected even when there is no clear financial benefit. The theory offers a comprehensive explanation of how exposure to comparable external forces causes firms to display comparable behavioral patterns, seek comparable objectives, and implement comparable business practices. These influences are classified as isomorphic or institutional forces. The theory states that social pressures for conformity (normative), the desire and competition among businesses to be seen favorably in society (mimetic), and the threat of losing important resources, rules, or sanctions (coercive) are frequently more important to the adoption, implementation, and maintenance of many organizational practices than are pressures for economic performance. Key components of sustainable leadership, such as stakeholder involvement, value-based leadership, and sustainability-oriented decision-making, are either enabled or constrained by institutional isomorphism (Assoratgoon & Kantabutra, 2023).

2. The concept of Social Public Procurement

The goal of the buyer-supplier relationship in social procurement is to create extra value that standard procurement partnerships would not be able to provide. Businesses create social value with their purchasing power that goes beyond the cost of the products, services, or building they are acquiring (Loosemore, 2016). Social procurement encompasses both direct and indirect methods (Furheaux & Barraket, 2014). Furheaux and Barraket (2014) propose four typologies to delineate the process. In certain cases, social services are procured directly, resulting in immediate social impact, particularly in sectors like healthcare or community services. The second typology involves the acquisition of public works, which yields indirect social benefits through structures such as roads and schools (Furheaux & Barraket, 2014). The third typology entails corporations allocating a portion of their work to social enterprises, leading to indirect social impact as non-profits or social enterprises provide public works and services. Lastly, the fourth typology pertains to businesses considering their social impact, often driven by corporate social responsibility, where they assess specific environmental or social criteria in decision-making processes. These typologies, while not mutually exclusive, all aim to engender positive social change.

3. Challenges of Implementing Social Public Procurement

* Lack of Standardization: Inconsistent norms and non-standardized procurement processes can result in corruption, financial theft, and inefficiency. Due to erratic procedures and variable standards, several of these countries have difficulties with procurement (Girgvlian, 2023). Standardized metrics and rules are frequently lacking when evaluating social criteria. Because of this, it is challenging for procurement officers to regularly assess vendors and guarantee adherence to social standards.

* Limited Supplier Capacity: Local contractors find it difficult to engage in public procurement procedures and adhere to sustainability criteria due to a lack of resources and expertise. (Roos, 2013). Further, many suppliers, particularly smaller businesses or those in developing

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countries, may lack the capacity to meet stringent social standards. This can limit the pool of eligible suppliers and increase costs for both buyers and suppliers. * Resistance to Change: Concerns about greater bureaucracy, diminished competitiveness, or decreased profitability may cause certain stakeholders including procurement officers and suppliers to oppose including social issues into procurement procedures (OECD, 2015a). * Inadequate Data and Transparency: Accurately assessing the social performance of suppliers may be hampered by a lack of transparent supply chains and dependable data. Buyers could find it difficult to hold suppliers responsible for adhering to social standards and to make educated judgments in the absence of enough information (von Berlepsch, Lemke & Gorton, 2022). * Legal and Regulatory Constraints: In many jurisdictions, social procurement methods do not receive complete support or incentives from legal and regulatory frameworks. Prioritizing social criteria in procurement processes may present legal issues or limitations for procurement officers (OECD, 2016).

The Analysis: 1. Research Methodology This study is literature-based research. Therefore, a thorough literature review on social public procurement was performed. Therefore, pertinent academic books, reports, and articles are on social public procurement in both developed countries and developing countries were located and examined. In order to gather relevant literature, the study explored academic databases, libraries, and other sources. The literature was critically assessed to discover important themes, trends, and gaps in the literature, and synthesizing findings to provide new views or insights into the research issue. Three developing countries made up the target population for this study, thus Ghana, Kenya, and Bangladesh. The three countries that have been thoroughly examined fall into the low-income or lower-middle-income group. Bangladesh, Kenya, and Ghana have all made significant modifications to their procurement processes. Between 2004 and 2007, procurement rules went into force, and a lot of work is currently being done to put the new laws into practice, improve the effectiveness of procurement organizations, and professionalize public procurement. 2. Implementation Status in Developing Countries 2.1. In the context of Ghana The Swiss-Ghana Sustainable Public Procurement (SPP) Project, a three-year initiative being carried out by PPA and funded by the Swiss Government with a USD 2.7 million grant, is the vehicle through which SSP is implemented in Ghana. By enhancing the monitoring and evaluation system and expanding the supply of more sustainably produced goods and services that the

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government purchases, the SPP Project seeks to “embed the principles of transparency, accountability, and sustainability in public procurement” (Schweizer Eidgenossenschaft, 2010 p4). The main goals of the targeted results are to strengthen the current M&E system by adding sustainability requirements and to introduce a national SPP system. The Public Procurement Act’s legislative compliance as well as the oversight of SPP implementation are regarded as essential to the institutionalization of SPP. Barriers and challenges The SPP project paper, which also includes a risk analysis addressing development, reputational, and fiduciary risks, rates the ambitious nature of establishing an SPP system while the Public Procurement Act is still waiting as a “high” risk (Roos, 2013). The following risks were found: local suppliers’ insufficient investment in sustainable technologies; procurement practitioners’ inability to apply new tools like Whole Life Costing and sustainability criteria; and insufficient capacity for inspection to ensure delivered products meet sustainability criteria. 2.2. In the Context of Kenya Kenya currently has a number of different SPP-related policies in place. Examples include the Office of the President’s policy to give youth-owned businesses at least 10% of all public contracts, as well as guidelines on how to better integrate women and micro, small, and medium-sized businesses in public procurement (PPDA 2005). In addition, there are environmental regulations or guidelines in place that discourage the use of fuel-guzzling cars, encourage the construction of solar-powered water-heating homes, and employ energy-efficient electrical equipment in an effort to reduce the amount of paper used. Barriers and challenges Procurement policies and guidelines are generally poorly implemented, procurement planning is lacking, and corruption is pervasive throughout the nation. Regarding the Public Procurement and Disposal (Preference and Reservations) Regulations, public procurement officers and the target groups generally lack awareness regarding the regulations’ policies, requirements, and procedures. To yet, no monitoring programs have been put in place to assess how well the Preference and Reservations Regulations are working. The risks associated with implementing an SPP system in Kenya include inadequate contract administration, inadequate capacity for tender evaluation, and widespread deficiencies in creating a proper tender document. The fact that award procedures are typically highly drawn out and very bureaucratic. 2.3. In the Context of Bangladesh Some private enterprises in Bangladesh that export seafood and textiles have begun to engage in sustainable procurement. Specifically, a number of global brands, like Benetton, Levis, Woodland, Van Heusen, Fruit of the Loom, and others, are using sustainable sourcing practices at the local factories where they outsource the production of ready-made clothing. As of yet, there is

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no official SPP plan or policy. The government’s General Conditions of Contract for Civil Works contain some clauses pertaining to social protection in civil work contracts as well as environmental protection on the building site. Barriers and challenges The perceived obstacles and difficulties mentioned in the conducted interviews are as follows. Due to the lax enforcement of environmental standards, there are currently no incentives to implement SPP. Additional difficulties include the degree of poverty, the incapacity of local contractors, the general lax application of the law, and the failure to use environmental and economic evaluation criteria during the bidding process. Political influence in procurement processes, especially in decentralized procurement, makes this even more challenging. The primary obstacles would be accounting for the associated cost of SPP as a long-term indicator of upcoming public procurement as well as the private sector’s lack of readiness. It is assumed that the majority of the bidding community will be unable to submit bids for public procurement contracts in Bangladesh due to the shift in business procedures, with the exception of the textile and seafood sectors (Roos, 2013).

Conclusion: Based on the analysis, the study revealed the following challenges in the target countries 1. Weak Enforcement of Environmental Regulations: One challenge identified is the dearth of incentives for the implementation of Social Public Procurement (SPP) as a result of lax enforcement of environmental laws. This makes it more difficult to include sustainability standards and an economic/ environmental assessment in the bidding process. 2. Poverty and Low Capacity of Local Contractors: The degree of poverty and the limited capabilities of local contractors are formidable obstacles to the successful execution of SPP. Local contractors find it difficult to engage in public procurement procedures and adhere to sustainability criteria due to a lack of resources and expertise. 3. Political Influence in Procurement Proceedings: Transparent and equitable procurement processes are severely hampered by political interference in the procurement process, particularly in decentralized procurement. This may thwart initiatives to advance social responsibility and sustainability in public procurement. 4. Cost Accommodation and Private Sector Preparedness: There are many obstacles to overcome, including the long-term expenses of accommodating SPP and the private sector’s lack of readiness. Except in specific industries like textiles and fisheries, changes in business procedures may prevent a sizable section of the bidding community from competing for public procurement contracts. 5. Poor Implementation of Procurement Rules and Regulations: Bangladesh is plagued by pervasive corruption, inadequate planning for procurement, and weak enforcement of procurement laws and regulations.

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To further complicate the proper implementation of SPP, public procurement officials and target groups generally lack understanding regarding policies, standards, and procedures. In conclusion, the difficulties encountered in putting Social Public Procurement (SPP) into practice point to structural problems that impede environmentally and socially conscious procurement practices across a range of nations. These problems include a lack of political will, a lack of capacity among local contractors and procurement professionals, and a lack of enforcement of environmental laws. Promoting sustainability and social responsibility in public procurement procedures is challenging due to the combination of poverty, corruption, and a lack of incentives. The difficulties and hazards involved in adopting SPP systems are further increased by the ambitious nature of deploying SPP systems in the face of impending legislation and inadequate procurement rule implementation. Recommendation (Proposed Strategies): In order to tackle these obstacles, coordinated endeavors are required to fortify regulatory structures, improve enforcement protocols, and cultivate competencies among public procurement stakeholders. To encourage the adoption of sustainable procurement methods, governments should give top priority to enacting and enforcing strict environmental rules as well as procurement laws. In addition, steps should be taken to combat political meddling and corruption in the procurement process, such as establishing accountable and transparent procedures. It is imperative to allocate resources towards capacity-building programs aimed at improving the comprehension of sustainability standards and enhancing the ability of local contractors and procurement practitioners to execute SPP efficiently. In addition, public awareness campaigns and training initiatives can support the development of a culture of responsible procurement practices by educating stakeholders about the value of sustainability in procurement. Countries can facilitate the successful implementation of SPP and support local and global sustainable development goals by tackling these concerns holistically.

REFERENCE: 1. Brammer, S., & Walker, H. (2011). Sustainable Procurement in the Public Sector: An International Comparative Study. International Journal of Operations & Production Management, 31(4), 452-476. 2. Mukumba, J., & Shakantu, W. (2024). Integrating Social Procurement into Overall Procurement Strategies: Challenges and Opportunities. Journal of Public Procurement, 24(1), 94-113. 3. Loosemore, M., & Lim, B. (2017). Social Procurement: A Pathway to More Sustainable Construction Supply Chains. Engineering, Construction and Architectural Management, 24(6), 1039-1059. 4. Government of New South Wales (2022). Procurement Policy Framework; Government of New South Wales: Sydney, Australia.

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5. Government of Western Australia. Western Australian Social Procurement Framework; Government of Western Australian: Perth, Australia, 2022. 6. Victorian Government (2022). Victoria’s Social Procurement Framework; The State of Victoria: Melbourne, Australia. 7. Queensland Government. Consider Social Procurement; Queensland Government: Brisbane, Australia, 2021. 8. Loosemore, M. Social procurement in UK construction projects. Int. J. Proj. Manag. 2016, 34, 133–144. 9. Roos, R. (2013). Sustainable Public Procurement in LICs: Implications for the Ongoing World Bank Procurement Review. GIZ. 10. Saussier, S., & Vidal, O. (2021). Social Public Procurement. In Oxford Research Encyclopedia of Economics and Finance. 11. Raj, S., et al. (2020). Social Procurement in Developing Countries: Evidence from South Africa. International Journal of Emerging Markets, 15(3), 442-464.

O‘ZBEKGIDROENERGETIKA PRINT ISSN 3060-4672 146 УЗБЕKГИДРОЭНЕРГЕТИКА UZBEKHYDROPOWER VOLUME 6 | ISSUE 4 | 2024