A CGD Note. As part of a general revival of interest in industrial strategy and job creation, some multilateral development bank (MDB) stakeholders suggest there may be a role for MDB-financed procurement to more strongly favor local suppliers through local content rules. This note discusses local procurement rules in general and the (small) role of MDBs in government procurement, and argues that MDB procurement rules around local content should make preferences flexible, optional, and justified on a case-by-case basis.
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