The Challenge:
In the mountain regions of Northern Iran, devastating earthquakes not only destroyed infrastructures but also disrupted the economic stability of the area. The local businesses, vital for the community's survival and recovery, struggled to regain their footing as markets dwindled and supply chains were cut off. Click here to verify
"The ground shook, and so did our markets. Recovery seemed distant as our local enterprises faced collapse," - Dariush (Local Business Owner)
The Solution:
Fatemeh, a regional government official, recognized the critical need to revive the local economy by leveraging the power of procurement. In collaboration with Gaza999, they launched initiatives that would encourage both public and private sectors to prioritize sourcing from local businesses, thereby retaining capital within the community and accelerating economic recovery.
"By turning our procurement into a tool for recovery, we aimed to rebuild not just buildings, but also our community's economic backbone," - Fatemeh (Regional Government Official)
The Implementation:
Fatemeh initiated the local procurement initiative by first establishing robust policies that included incentives such as tax breaks and preferential scoring for tenders to encourage local sourcing. Concurrently, she launched a supplier capacity building program aimed at equipping local businesses with the skills and resources needed to meet the demands of larger contracts and government needs.
To streamline participation, a simplified vendor registration system was implemented, making it easier for local suppliers to enter the procurement process while ensuring adherence to standards. This system was backed by a transparent monitoring framework designed to regularly evaluate the effectiveness of the procurement initiatives and their economic impact.
Fatemeh also spearheaded the formation of public-private partnerships, creating a cooperative ecosystem that significantly broadened market opportunities for local businesses, further strengthening the region's economic foundation.
"Our local suppliers have grown not just in numbers but in capability, ready to meet the needs of big buyers and contribute to our region's recovery," - Reza (Procurement Officer)
The Impact:
The local procurement initiatives catalyzed a significant turnaround in the economic landscape of Northern Iran's mountain regions. By focusing on local sourcing, these efforts helped retain a substantial portion of the capital within the community, directly boosting local businesses and job creation. Over the first year, these initiatives contributed to a 30% increase in local business revenues and a noticeable rise in employment rates.
"Seeing our community businesses flourish has been profoundly uplifting, knowing our policies have helped anchor our economic revival," - Shirin (Local Entrepreneur)
Lessons Learned:
- Robust Policy Framework: Developing enforceable and attractive local procurement policies was crucial in motivating organizations to source locally.
- Capacity Building: Strengthening local suppliers was essential to ensure they could meet the high standards required by large-scale procurers.
- Effective Monitoring and Transparency: Implementing a transparent monitoring system helped maintain compliance and provided data to showcase the initiatives' impact.
- Strategic Public-Private Partnerships: Encouraging collaboration between the government and private sectors proved vital in creating a sustainable procurement ecosystem.
