ABSTRACT

This chapter focuses on the role of government in formulating offsets policy. It provides a sound understanding of key factors and characteristics of government in offsets policy formulation. Two components are vital in viewing offsets with a long-term vision: first, deciding on a national offsets strategy, and second, based on the strategy, to formulate an offsets policy. The offsets policy can be written or unwritten. The offsets strategy and policy are both not cast in stone and can continuously evolve based on dynamic internal and external political, social and economic changes that may have direct or indirect impacts on a nation's industrial and technological landscape. Many countries around the world undertake policy formulation and implementation through a policy transfer process. The chapter elucidates the features of offsets in international procurement and in the bid process. It discusses offsets strategy and development, how offsets policy is formulated, offsets objectives and the role of stakeholders in offsets management.