Contracting out services for systematic registration: Gaining productivity and managing risks
Victor Endo, Enrique Pantoja, Luis Triveno
When is contracting out private firms preferable to direct implementation for systematic registration? Is outsourcing a solution for developing countries with limited capacities to monitor performance and access to technology? This paper analyzes land administration projects in Latin America and Caribbean Region (LAC) to identify the conditions that should be present for a successful contracting out, discuss potential risks, and identify risk management actions. Based on the analysis of regional experiences, the paper’s main conclusions are: (i) contracting out works best when the government has a very clear understanding of the scope of work, is capable of designing contracts that allow attracting capable firms, and is equipped with the capacity to closely monitor the results, and identify and manage the risks; (ii) contracting out works relatively better in areas with lower levels of conflicts, or which do not demand in depth knowledge of the socio-historical context and heightened cultural sensitivity due, for example, to the presence of indigenous populations or other minority groups; (iii) economies of scale are also critical for contracting out, including not only the relative size of the contract but also geographical dispersion of the field activities; and (iv) the capacity for direct execution may help national and local governments to monitor performance and conduct successfully quality control of contractors’ production, and can also play a key role for smaller and complex settings where economies of scale cannot be achieved.
Event: Land Governance in an Interconnected World_Annual World Bank Conference on Land and Poverty_2018
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