From Corruption to State Capture. A New Analytical Framework with Empirical Applications from Hungary

Fazekas, M. – Tóth, I. J. (2016): From Corruption to State Capture. A New Analytical Framework with Empirical Applications from Hungary. Political Research Quarterly, published online before print on March 24, 2016 

http://prq.sagepub.com/content/early/2016/03/18/1065912916639137.abstract

State capture and corruption are widespread phenomena across the globe, but their empirical study still lacks sufficient analytical tools. This paper develops a new conceptual and analytical framework for gauging state capture based on microlevel contractual networks in public procurement. To this end, it establishes a novel measure of corruption risk in government contracting focusing on the behavior of individual organizations. Then, it identifies clusters of high-corruption-risk …

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GTI awarded a new major research project by the British Academy

Government Transparency Institute proudly announces that the British Academy and the UK’s Department for International Development (DFID) decided to support our joint research project with the University of Sussex and Datlab. The project ‘Curbing corruption in development aid-funded procurement’ aims at developing accurate and targeted indicators of corruption in aid-funded procurement.

We employ our novel corruption proxies to explore how the risks of corruption in aid allocation are affected by different institutional control mechanisms and the socio-political context in recipient-countries. Our analysis is based on a multi-method research design that combines a quantitative analysis of procurement data …

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How to Construct a Public Procurement Database from Administrative Records? – Technical Report

Czibik, Á. – Fazekas, M. – Tóth, B. (2015): How to Construct a Public Procurement Database from Administrative Records? GTI-R/2015:02, Budapest: Government Transparency Institute.

This report aims to provide a comprehensive outline of the potential challenges of building a database from publicly available public procurement records and the possible solutions to the identified problems. We use Hungary as an illustrative example as most problems faced in other countries are present there, and so any finding will be widely applicable. The chapters introduce 1) the process of public procurement and the publicly available announcements in Hungary; 2) the administrative processes which …

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

Fazekas, M., Chvalkovska, J., Skuhrovec, J., Tóth, I. J., King,  L. P. (2013). Are EU funds a corruption risk? – The impact of EU funds on grand corruption in Central and Eastern Europe. GTI-WP/2013:03, Budapest: Government Transparency Institute.

The paper explores the impact of EU funds on institutionalised grand corruption in public procurement between 2009-2012 in three countries: Czech Republic, Hungary, and Slovakia. We analyse a unique pooled database containing contract-level public procurement information for all three countries. We develop a composite corruption risks indicator based on the incidence and logical structure of ‘red flags’ in individual public procurement transactions. …

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The Political Economy of Grand Corruption in Public Procurement in the Construction Sector of Hungary

Fazekas, M. – Lukács, P. A. – Tóth, I. J.: The Political Economy of Grand Corruption in Public Procurement in the Construction Sector of Hungary. In: Alina Mungiu-Pippidi (ed.): Government Favouritism in Europe. The Anticorruption Report Vol. 3., Barbara Budrich Publishers. Opladen – Berlin – Toronto. 2015. pp. 53-68.

Bidding companies linked to political officeholders are more likely to win in procurement tenders overall in Hungary. The share of companies that are openly connected politically winning public procurement tenders in 2005-2012 was between 5% and 31% depending on how narrowly connections are defined. This significant association is stronger in the …

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