Is procurement panacea to SMEs growth?
Wednesday, November 28, 2007
Some had pointed out that such a policy would also achieve social justice within the society as a procurement system biased towards SME's contribute to fair distribution of resources.
Nothing can be further from the truth. Botswana being a free market economy is susceptible to unequal distribution of resources, which can only be addressed through targeted government policy intervention. Personally I do not have any problems with free market economy or capitalism. But as some people had argued, and even myself as a capitalist, I am convinced that leaving everything to the market forces can never achieve social justice. The truth being that free market policies reward the strongest. Capitalism is about survival of the fittest and the weak get destroyed through competition.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...