Red tape, bribery and government favouritism: evidence from Europe

Red tape has long been identified as a major cause of corruption, hence deregulation was advocated as an effective anticorruption tool, an advice which many country followed. However, we lack robust systematic evidence on whether deregulation actually lowers corruption. This is partially due to the difficulty of defining what is good regulation, but also to […]

An Objective Corruption Risk Index Using Public Procurement Data

In order to address the lack of reliable indicators of corruption, this article develops a composite indicator of high-level institutionalised corruption through a novel ‘Big Data’ approach. Using publicly available electronic public procurement records in Hungary, we identify “red flags” in the public procurement process and link them to restricted competition and recurrent contract award […]

Measuring Government Favouritism Objectively: The Case of Romanian Public Construction Sector

Government favouritism in the allocation of public funds raises costs for any society in which corruption prevails. Particularistic transactions can be identified in three different situations: uncompetitive awards of public contracts when there is only one “competitive” tender, when public money is spent on contracts supplied by politically connected firms, and a situation of capture […]

Corrupt Contracting: Partisan Favouritism in Public Procurement. Hungary and the United Kingdom compared.

For politicians seeking to use a clientelist approach to achieve political and private gain, i.e., to prolong their hold on power and maximize personal profit, control of government contracting is a key tool. We theorise that politicians wishing to exploit government contracting for such ends will seek to increase their influence over three stages of […]

The Anticorruption Report. Volume 3: Government Favouritism in Europe

This volume reunites the fieldwork of 2014-2015 in the ANTICORRP project. It is entirely based on objective indicators and offers both quantitative and qualitative assessments of the linkage between political corruption and organised crime using statistics on spending, procurement contract data and judicial data. The methodology used in the analysis of particularism of public resource distribution is applicable to […]

Uncovering High-Level Corruption: Cross-National Corruption Proxies Using Government Contracting Data

Measuring high-level corruption and government favouritism has been the object of extensive scholarly and policy interest with relatively little progress in the last decade. In order to address the lack of reliable indicators, this article develops two objective proxy measures of high-level corruption in public procurement: single bidding in competitive markets and a composite score […]

Report on Turkey on institutions in public procurement for the infrastructure sector

The report employs national data to analyse recent developments in the construction sector. However, the contract-level procurement data have not been compiled as requests for the data were unanswered by the Turkish Public Procurement Agency. Therefore, aggregate data on public procurement have been used to trace developments in law and implementation. The post-2002 incumbent AKP […]

Report on Romania on institutions in public procurement for the infrastructure sector

Improving infrastructure in Romania has been a significant project in the past 25 years. Unfortunately, although large amounts of public funds were spent in the construction sector from 2007 to 2013 (an average of 6.6% of GDP), the physical results in terms of project quality and completion do not match this investment. One of the […]

Report on Hungary on institutions in public procurement for the infrastructure sector

This report aims to document and to investigate the extent and the determinants of government favouritism in EU funded infrastructure development. It uses a variety of qualitative and quantitative research methods. While predominantly relying on the analysis of contract-level quantitative data on Hungarian public procurement, it also provides a discussion of the institutional framework and […]

Report on Germany on institutions in public procurement for the infrastructure sector

Germany has the highest public procurement expenditure in the EU, with an average of 370 billion euros a year between 2009 and 2013. The main objective of this report is to shed some light on the inner workings of the German public procurement system by providing a general overview of its historical development, the current […]

Report on Croatia on institutions in public procurement for the infrastructure sector

This report seeks to assess the extent of favouritism – i.e., preferential treatment for some bidders over others – in the allocation of public procurement contracts in the construction sector in Croatia. The methodology is based on identifying opportunities for favouritism and evaluating the effectiveness of constraints. The research finds that Croatia’s public procurement law […]

Report on Bulgaria on institutions in public procurement for the infrastructure sector

The Bulgarian public procurement market constituted 9% of national GDP on average from 2009 – 2013, which is lower than the EU average. Public procurement has been particularly important for the construction sector in the country, with approximately a third of total sector turnover deriving from public procurement in 2013. Since the onset of the […]

Anatomy of grand corruption: A composite corruption risk index based on objective data

Although both the academic and policy communities have attached great importance to measuring corruption, most of the currently available measures are biased and too broad totest theory or guide policy. This article proposes a new composite indicator of grand corruption based on a wide range of elementary indicators. These indicators are derivedfrom a rich qualitative […]

Corruption manual for beginners: “Corruption techniques” in public procurement with examples from Hungary

This paper develops 30 novel quantitative indicators of grand corruption that operationalize 20 distinct techniques of corruption in the context of public procurement. Each indicator rests on a thorough qualitative understanding of rent extraction from public contracts by corrupt networks as evidenced by academic literature, interviews and media content analysis. Feasibility and usefulness of the […]

Background paper on Latvia

Latvia’s political system has been functioning in a relatively inclusive and democratic way for about the last two decades. However, corruption has been a continuous concern. In the allocation of public resources such as public procurement contracts, public jobs and social services, fairness and impartiality are observed but not uniformly adhered to. Public agencies differ […]

Are EU funds a corruption risk? The impact of EU funds on grand corruption in Central and Eastern Europe

Fazekas et al explore the impact of EU structural funds on institutionalised grand corruption in three countries where corruption is systemic – Czech Republic, Hungary, and Slovakia – between 2009-2012. They examine whether EU funds have contributed to weakening institutional quality in terms of wasteful public spending and increased ‘legal’ corruption conducted through public procurement. […]

Bottom of the Heap. The Case of Romania

The suspension of EU payments in four operational programmes in 2012 showed how problematic Romania’s correct and effective management of EU funds is. Such funds aim primarily at decreasing the socio-economic disparities among EU members and support the economic convergence with their Western counterparts of less developed new EU members. Consequently, a poor absorption rate […]

Hidden Depths. The Case of Hungary

This report investigates corruption risk of EU funds spending in Hungary within the framework of the Public Procurement Law. Its finding is that in spite of what is a tight regulatory framework EU funds are likely to fuel the abuse of public spending. Even though public procurement using EU funds faces considerably more stringent regulation, […]