Measuring Corrupt Rent Extraction by Tracking the Misuse of Corporate Vehicles

Fazekas, M. and Tóth, B. (2016). Measuring Corrupt Rent Extraction by Tracking the Misuse of Corporate Vehicles. Budapest: Government Transparency Institute.

This proposal was prepared for the U4 Anticorruption Resource Center’s Proxy Challenge 2016. This year’s proxy challenge competition received 24 submissions and for our greatest pleasure, GTI’s team won the competition. The proposal was presented by Mihály Fazekas and Bence Tóth at the International Anti-Corruption Conference in Panama, 1-4 December.

The proxy indicator looks at the exchanges between private companies and public bodies. The proxy makes it possible to identify potentially corrupt transactions and companies specifically designed for corrupt …

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A comprehensive review of objective corruption proxies in public procurement: risky actors, transactions, and vehicles of rent extraction

Fazekas, M., Cingolani, L. and Tóth, B. (2016). A comprehensive review of objective corruption proxies in public procurement: risky actors, transactions, and vehicles of rent extraction. GTI-WP/2016:03, Budapest: Government Transparency Institute.

This paper can provide a comprehensive review of quantitative corruption proxies, conceptualise how different indicators capture different aspects of corruption, and identify gaps in the measurement landscape. Institutionalised, well-established corruption in government contracting aims to bypass fair and open competition in order to allocate contracts to companies belonging to the corrupt group. This requires at least i) corrupt transactions allowing for rent generation, ii) particularistic relations underpinning collective action …

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Corrupt Contracting: Partisan Favouritism in Public Procurement

David-Barrett, L and Fazekas, M (2016). Corrupt Contracting: Partisan Favouritism in Public Procurement. GTI-WP/2016:02, Budapest: Government Transparency Institute.

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 public procurement – policy formation, implementation and monitoring – but that their efforts can be constrained by institutional controls and checks. We examine these influence strategies and …

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Breaking the cycle? How (not) to use political finance regulations to counter public procurement corruption

Fazekas, M and Cingolani, L (2016). Breaking the cycle? How (not) to use political finance regulations to counter public procurement corruption. GTI-WP/2016:01, Budapest: Government Transparency Institute.

There are widespread perceptions and countless documented cases of tight-knit networks of politicians and businessmen colluding for allocating public procurement contracts in return for political party donations. In the absence of systematic evidence, neither the magnitude of the problem nor the effectiveness of policies curbing such corruption is well-understood. In order to advance our understanding of these phenomena, this paper tests whether political financing regulations can contribute to controlling corruption in public procurement. We …

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Universalistic rules-particularistic implementation: The EU’s single market for government purchases

Fazekas, M and Skohrovec, J (2016). Universalistic rulesparticularistic implementation: The EU’s single market for government purchases. GTI-R/2016:01, Budapest: Government Transparency Institute.

Open and fair access to government contracts has been a long-standing principle in many international trade agreements including the one on the EU’s single public procurement market which is probably the most extensive among them with its long standing common regulatory and enforcement framework. However, the ostensibly low prevalence of cross-border trade in European public procurement represents a troubling puzzle: only about 5% of procurement contracts are awarded to non-domestic suppliers. This is in strike contrast with overall trade …

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