More Love in the Time of Cholera: Staying Clear of Black Holes, Whirlpools, Vices and Other Sins in Offset Policy Design

Abstract

This short academic paper, prepared for background study by senior civil servants in a forthcoming mid-career training course, looks at certain plausible elements of sound offset and counter-trade policy design, that are repeatedly noticed in important national jurisdictions that have successfully deployed such tools for fostering their domestic industrial base. It attempts to develop an objective framework for analysing and comparing national offset systems, as an alternative to anecdotal and responses-based systems presently employed for the purpose. The issues for offsets reforms discussed in this short paper could also provide useful pointers to developing countries in particular that may be serious in their intentions and efforts for smart leveraging of public procurement cases for fostering domestic industrial capabilities.

Keywords: Public Procurement, Offsets, Countertrade, Counter Obligations, Acquisition Reform