Shielding Public Procurement in Mexico: A Long Way Through Competition

By Fernando Carreño

Competition is of great importance in the public procurement processes because, when a bid is designed with competition in mind, overpricing, favoritism, and undue influence are restricted. This in turn impedes the formation of collusive agreements that harm the public budget and the welfare of the entire society. The processes of public procurement in Mexico are affected by the extent of discretion that the regulation grants to public agencies and entities. One way to combat this situation would be to seek and ensure competition in these processes. Therefore, it is necessary to consider that a public procurement process must be designed in order to: (i) obtain the highest possible participation; (ii) create intense competition between participants; and (iii) reduce spaces for the formation and sustenance of collusive agreements and corruption.

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