State Capture and Defence Procurement in the EU

Czibik, Á., Fazekas, M., Hernandez Sanchez, A. and Wachs, J. (2020). State Capture and Defence Procurement in the EU. GTI-WP/2020:05, Budapest: Government Transparency Institute.

This paper is part of a broader research project which aims to assess state capture risks in the field of defence procurement using a combination of qualitative and quantitative methods to overcome research challenges typical of this area, most of all the relatively low level of transparency due to specific procurement regulations. In this paper, we summarise the findings of the quantitative part also drawing out key policy recommendations.

Public procurement is one of the government …

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Controlling Corruption in Development Aid: New Evidence from Contract-Level Data

Dávid-Barrett, E., Fazekas, M., Hellmann, O., Márk, L. and McCorley, C. (2020). Controlling Corruption in Development Aid: New Evidence from Contract-Level Data. Studies in Comparative International Development.

Following scandals about corruption in foreign aid, and in a political climate that increasingly questions the legitimacy of development assistance, donors are under pressure to better control how their funds are spent. However, there is little evidence on precisely how to control corruption in development aid. This article assesses under which conditions donor regulations are successful in controlling corruption in aid spent by national governments through procurement tenders. The article analyses data on …

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Water and Sanitation Sector Integrity Risk Index

Fazekas, M., Allakulov , U., Hernandez Sanchez, A., Aje, J. (2020). Water and Sanitation Sector Integrity Risk Index. GTI-WP/2020:04, Budapest: Government Transparency Institute.

We employ a data-driven approach to develop a composite Water Integrity Risk Index (WIRI) made up of a host of objective proxy indicators as well as survey-based measures of corruption experience to identify and assess integrity risks in the urban water and sanitation sector in selected settlements around the world. Unlike broader-scope corruption indices, the WIRI outlined in this paper uses administrative datasets and survey data capturing information on corruptible transactions; thus, our analysis is micro-level, narrowly …

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Public-private relationships in defence procurement in the EU: The case of the UK

Dr Resimić, M. (2019). Public-private relationships in defence procurement in the EU: The case of the UK. GTI-WP/2019:04, Budapest: Government Transparency Institute.

Defence procurement is sensitive to corruption and state capture risks, because the government enforces secrecy and awards high value contracts to firms in a market dominated by a few large players (Pyman, Wilson & Scott, 2009; Courtney, Cockcroft & Murray, 2002). Defence procurement in the UK has some additional risks considering that around 50% of its contracts are awarded without competition. Although the UK has low levels of corruption risks in its defence sector compared with other EU …

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Does the Defence Industry Capture the State in France?

Renon, E. (2019). Does the Defence Industry Capture the State in France? GTI-WP/2019:03, London, UK: Government Transparency Institute.

State capture is the disproportionate and unregulated influence of interest groups or companies, where they manage to bend state laws, policies and regulations by paying illicit contributions to political parties and for election campaigns, buy parliamentary votes, presidential decrees or court decisions, as well as through illegitimate lobbying and revolving door appointments. State capture can also arise from the more subtle close alignment of interests between specific business and political elites through family ties, friendship and the intertwined ownership of economic assets. …

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