The dirty underbelly of localisation

Localisation requirements in emerging-markets projects are meant to be a way of giving back; an attempt at ensuring a lasting beneficial legacy for the local population of the respective country. But is this ostensibly benign endeavour offering a perfect guise for corruption and bribery? Ollie Gordon reports.

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Comments (2)

  • Tim Runge
    Tim Runge, Constructive Edge 12 January 2016

    If properly handled localization can help development objectives in emerging markets. The term localization suggests a focus on using local suppliers. We believe that there exists opportunities to broaden what localization is and to align the economic development objectives of the state more closely with its natural strengths which can be further developed with the support of winning bidders for capital projects.

  • Piper Starr
    Piper Starr, Independent 12 January 2016

    The OECD and member ECAs could take it one step further for those projects they are supporting by looking beyond just the "local" suppliers to determine the extent to which the costs are truly local. The OECD only governs the use of local content and requires that only the first level supplier be local. If the underlying suppliers are actually outsourcing the content from their own country or another, ECAs are able to claim that the content is "foreign" vs. local and skirt the OECD local content rules.

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