Fighting corruption in public procurement in post-communist states: Obstacles and solutions

Abstract

Anti-corruption efforts in Europe’s post-communist states have been less successful than anticipated. Criticism has been raised against the role of the international community in promoting anti-corruption programmes. Besides, such programmes have been deemed vague and “all-inclusive”. They have largely failed to address local factors “informing” corrupt behaviour in post-communist states, such as (a) negative perceptions of law, and (b) informal practice.‘ I’d be grateful if you could retain the original sentence as it is more precise.

Corruption Perceptions and Entrepreneurial Intentions in a Transitional Context–the Case of Rural Bulgaria

“…However, the grip of the formal institutions has been slow to take hold, partly because of the government's insufficient and inconsistent enforcement efforts, and partly because of the dominant economic actors themselves, who have not been especially interested in establishing a regime of the "rule of law." The result is that the Bulgarian post-socialist business environment is characterized by a general distrust toward the state as a political and economic actor, reliance on personal contacts, bribery, informality and tax evasion (Estrin et al, 2013;Grodeland and Aasland, 2011;Stoyanov et al, 2014).…”

“…Grodeland and Aasland (2011) conducted a mixed method survey in seven post-socialist countries in Europe on the use of corruption practices. Their findings reveal that individuals habitually avoid formal institutions and rely on evasion and corrupt practices, even when there is an effective and well-functioning legal alternative.…”

“…Although significant heterogeneity in cultural norms and business practices does exist, corruption is widespread and deeply rooted in the cultural norms of many of these economies (Dimitrova-Grajzl et al, 2012;Grodeland and Aasland, 2011;Lee and Guven, 2013).…”

Corruption as an obstacle for doing business in the Western Balkans: A business sector perspective

“…Firms may be exposed to corrupt pressure on the global market due to an unfair competitive advantage gained by other companies that offer corruption deals to a third party. Companies doing business with the public sector may use corrupt practices more often because public procurement is especially sensitive to corruption (Ateljević and Budak, 2010;Grødeland and Aasland, 2011).…”

The Public Procurement System: A Business Sector Perspective

“…Big corruption scandals in Croatia are associated with awarding public contracts to loyal companies managed by persons closely connected with the politicians in power and in conflict of interest (Ateljević and Budak, 2010). Public procurement is sensitive to corruption, as supported by the evidence in Western Balkans countries and post-communist transition countries (Grødeland and Aasland, 2011). Anecdotal evidence 1 on subcontractors complaining that they have difficulties getting paid for the work done in huge public contracts, that bidding documentation is designed to suit large companies and/or preferential ones, that suppliers were asked to pay an entry fee, and other irregularities deserve to be further explored.…”