Anders Wijkman_Nordic Health and Welfare Innovation Arena


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Anders Wijkman_Nordic Health and Welfare Innovation Arena

  1. 1. ”Howcan PublicProcurementhelpimprovepublic sector services,solvesocietalchallenges andspur innovation? ”Comments by Anders Wijkman, Chair of theSwedish GvtInquiry on Public Procurement, atNordic Health Arena on May 22nd, 2013
  2. 2. Public Procurement Review –mainfindings• Lack of leadership and strategy• Legal perspectivetoodominating• Opp:s for negotiation and dialoguelimited – preventsinnovative solutions to surface• Skillslackingamong PP responsibles• Data and statisticslacking• Uncertaintyaboutwhat social and environmentalclaimscanbe put• Impact studies on impact of PP envi and social claimsfewand far between• Qualitycriteriaoften lack precision; Monitoring is poor• Lowestprice vs Quality; Life-cyclethinking is rare• Toomanycourtcases
  3. 3. Swedish Inquiry Report addressesmajor problems• Gvtdevelop a National Strategy to be approved by Parliament; Strategiesat County/Municipal level as well• PP-responsiblesshould be member of Management Teams• Make PP rulessimpler and flexible• Increasethreshold for DirectProcurement• Priority given to Negotiation and Dialogue – therebyopening the door forinnovation• Partnerships for Innovation• Priority given to Quality work + Monitoring• Court reviewsconcentrated to fewercourts• Strengthen PP support and guidance• Developfurther GPP criteria, incl LCA• Public Sectorleadrole in innovative solutions• Nordic cooperation on GPP + social criteria, inclmonitoring
  4. 4. Environmental and socialrequirementsdo make a difference• General policy instruments to prefer – butoftendifficult toobtain; here PP cancomplementwell• In spite of limitedimpact studies, a general conclusioncan bedrawn:GPP is a good instrument to helpreachenvironmentgoalsStudies re the impact of social requirements inprocurementcontracts are fewer, butwhatweknow is positive• GPP has potential to be a major driver of innovation• GPP often offer financialsavings, in particularwhenbased onLCA• SMEsoftenbenefit from GPP• Important not to ”overburden” contracts withtoomanyparalleldemands
  5. 5. Major futurechallenges• World population likely to reach 9 Billion in 2050• 3 Billion new middle-classconsumers in 2030• 50-100 % increase in demand for food, energy, water, steel,cement etcuntil 2030• Climatechangelikely to makefoodproductionincreasinglydifficult in large regions• Prices for energy and key commoditieslikely to increase• Resource-constrained world• Unemployment, not leastamong the young• Equal rights and opportunities• Aging population
  6. 6. Global Warming did not stop in 1998- as many deniers claimSource: Skeptical Science, Church et al 2011Climate
  7. 7. Real commodity prices, 1980-2011*0501001502002503001980 1985 1990 1995 2000 2005 2010Energy Metals & Minerals AgricultureNote: 2011 is Jan-Feb average
  8. 8. In a resource-constrained world• Competition for water, land, energy andmaterials will be fierce• Investments in resource-efficientinfrastructureand renewables must havetoppriority• Recycling and reusewill be KEY• R&D must be aiming at sustainableinnovation• Movetowards a circulareconomycrucial
  9. 9. Role of Public Policy critical• To address market failures and to provide public goods• A mix of regulation and economic instruments will beneeded at international, regional and national levels• Global governance a failure; EU gives somehope• Individual nations can and must do a lot• PP representsroughly 20 % of the economy• In many areas Public Sector major actor• PP can be a veryusefultool, not least to stimulateinnovative and/or transformative solutions• The new PP Directive is more flexible and allows fornegotiation and innovation partnerships
  10. 10. Different levels of ambition for GPP• Replacingproducts of poorenvironmentalperformance• Incrementalchangewithinexistingtechnologies• Innovative solutions –radicallyimprovedproducts• Transformative solutions – replacingproductswith services and/or minimum 80% reductionin energy/materialdemand (Factor 5)
  11. 11. Social policiescan be advanced• Human rights – as well in ThirdCountries• Anti-discrimination• Accessibility for people with differenthandicaps• A better work environment• Employmentopportunities• Engaging non-profit sector offers specialopportunities – home for elderlyetc
  12. 12. 二十一世纪新前线21st Century FrontiersPresent Green Strategies are insufficient; IEA WEO 2011 was dynamitebut did not cause much alarm:2017The world is lockingitself into anunsustainable energyfuture which wouldhave far-reachingconsequences
  13. 13. 二十一世纪新前线21st Century Frontiers should gobeyondincrementalenvironmentalimprovements and efficiencygains, and aim at“breakingoutoflocked-in systems andthinking”.Environment CommissionerJanez Potocnik
  14. 14. Transformative solutions areverymuchneeded• Defined as a reduction in energy- and materialconsumption of minimum 80 % (Factor 5)• Examplescould be- substitutingphysicalmeetings and travel withvirtualmeetings- zero-energybuildings- reducingmobilitythroughband-with- business modelsbuilt on HQ-service and leasing, instead ofa constantstream of new products – therebyfacilitatingrecycling and reuse and promotingproduct life extension• Public Procurementcanhelpbringsuch solutions to themarket
  15. 15. Transformative solutions already emerging二十一世纪新前线21st Century Frontiers
  16. 16. Promisinginitiatives• The Legal, Financial and Administrative Services Agencyis running a pilot project for transformative solutions –Indian Gvt has joined the effort• Swedish Agency for Economic and RegionalGrowthInitiative for ”transformative clusters”• Vinnova on Innovation• Nordic Innovation• The Nordic Built Charter• Potential for transformative solutions is significant andthe role of PP is critical• The healthsectorshould be no exception