Рublic Procurement in Russia: What Hinders Innovation?

ABSTRACT

Using public procurement to foster innovation is a widespread practice worldwide. However, in Russia public procurement has had no significant impact on developing innovation. Empirical research with expert interviews and qualitative and quantitative data analysis has revealed the reasons for poor performance to promote innovation, including tough anti-trust and anti-corruption rules, limited use of tenders as well as “life-cycle cost” criteria, and poor management by the procuring agencies. The analysis revealed the contradiction between the rules designed for fighting corruption and monopolies and the need to stimulate innovation through procurement.     

Full and Open Competition in Public Procurement: Values and Ethics in Contracting Opportunity

ABSTRACT

Governments have sought to respond to increasing pressures to accomplish aims with efficiency and at low cost. A perception of the potential for corruption and waste of public resources has been met with calls for transparency and accountability. Competition is believed to lead to impartial, optimal outcomes, but attention paid to competition in the literature suggests that the benefits are not universally clear. This paper considers ‘full and open competition’ as a policy promise, ethical obligation, and a matter of justice, drawing upon work of John Rawls and others, in the United States case. The research question is: What do Federal procurement data tell us about the nature of full and open competition in practice? This study draws upon contract data available from the U.S. Federal government, for fiscal years from 2015 to 2018. Through an ordinal regression, it is suggested that variation in the extent of competition results in part from size of project, size of the business (or potential business) receiving the project, and the industry classification, particularly in cases centering on commercial acquisitions. While ‘full and open competition’ is frequently employed, the difference between the normative value of the concept in statute, and practical outcomes in implementation, is clear. This difference has consequences for both vendors and the government.     

The relationship between competition and efficiency of waste-collection services in the Czech Republic

This paper examines the role of the competition on the waste-collection market. Based on the case study of the Czech Republic, we evaluate the influence of competition intensity on supply side of the market on efficiency of waste-collection services. The rate of competition was approximated by the number of submitted bids to public tenders and efficiency was measured by per capita expenditures for municipal waste-collection services. We developed two regression models – the first model verified a competitive effect on the public procurement market for the provision of waste-collection services; the second model identified factors that affected municipal expenditures for waste-collection services per capita. We concluded that the competition in the waste-collection market increases by organising open tenders for suppliers at regular intervals, by adapting the duration of contracts to economic life of fixed assets, by sustaining pressure on service providers through a change in suppliers or the distribution of contracts among jurisdictions.     

Fiscal and political determinants of local government involvement in public-private partnership (PPP)

ABSTRACT

In this article, we estimate the main determinants of local government’s engagement in public-private partnership (PPP) projects using logistic panel regression. We use data from 2478 municipalities and cities in Poland from 2009 to 2016. The results show that municipalities with higher levels of indebtedness have a higher probability of opening PPP tenders while local units that are more dependent on central grants or receive more European grants are less engaged in PPP. We also found that the mayors of municipalities and cities with stronger electoral competition engage in PPP with a higher probability. These results are important for discussions on the efficient use of PPP. They show that local government decisions made in conditions of fiscal constraint and political struggle can blur the PPP’s value-for-money aim.     

The Effects of Corruption on Satisfaction with Local and National Governments. Does Corruption ‘Grease the Wheels’?

Abstract

A causal association was found between higher levels of corruption and lower levels of satisfaction with local and national governments. However, interaction term analysis provides suggestive evidence that: first, as public service satisfaction increases, the effects of corruption change from negative values to positive values for both local and national governments; second, as political situations improve, the negative effects of corruption diminish for both local and national governments; and, third, as the economic situation improves, the negative effects of corruption diminish for local, but not for national governments.     

Political Fragmentation and Fiscal Status: Evidence from Municipalities in Israel

Abstract

This article analyses the link between fiscal balance and political fragmentation. While a large body of literature states that political fragmentation leads to fiscal deficits, others suggest that political fragmentation is associated with political competition, which tends to improve fiscal balance. These hypotheses are tested using budgetary and political data of municipalities in Israel for the years 1998–2006. The results suggest that both hypotheses may be correct, depending on voting behaviour. In Arab municipalities, where residents vote according to clan affiliation, low levels of political fragmentation are associated with large debts. On the contrary, in Jewish municipalities, low levels of political fragmentation are associated with small debts, since in these cases, coalition formation requires less spending and is easier to sustain.     

Corruption,Privatisation and Economic Growth in Post-communist Countries

Abstract

This article empirically investigates the effects of corruption and privatisation on economic growth in the post-communist countries of Central and Eastern Europe and the former USSR. We use a corruption and privatisation augmented open-economy leader–follower endogenous growth model to derive our research hypotheses. In this setting, corruption, privatisation and external openness jointly determine the per capita income in the follower economy. This model predicts that economies with higher shares of private ownership, lower corruption, and higher external openness enjoy higher rates of growth. Our empirical verification of these predictions is based on a panel of 29 post-communist countries during the period 1996–2014. Our estimation results confirm the negative effects of corruption, while the positive effects of privatisation are limited to small-scale privatisation.     

Responsibility attribution for corruption scandals

ABSTRACT

This paper studies the effect of the type of government on responsibility attribution for corruption scandals. Most studies on corruption voting have assumed that voters punish all kinds of governments. This article challenges this assumption by distinguishing between two types of governments: single-party majority governments and minority/coalition governments. This hypothesis is tested using data from the 2011 Spanish local elections. Our findings reveal that the effect of coalition governments on corruption voting is not statistically different than majority ones. However, when we differentiate between welfare-enhancing and welfare decreasing corruption, we find that welfare-decreasing corruption has a clear negative effect on the electoral performance of the mayor’s party when it impacts single-party majority governments, but not when the mayor needs the support of other parties (minority or coalition governments).     

E-Government to Combat Corruption: The Case of Seoul Metropolitan Government

Abstract

The Seoul Metropolitan Government adopted a reform measure to combat corruption, called the “OPEN” system, an acronym for the “Online Procedures ENhancement for civil applications,” in January 1999, and the new system went into operation in April 1999. The OPEN system is a Web-based internet service to transact civil applications for permits, registrations, procurements, contracts, and approvals submitted online by citizens. It places transparency and accountability in the core of the management system of civil applications by providing open access for anybody, anytime, and anywhere to file applications and monitor the review and approval processes on real time online until the decision on the applications is finalized according to the timetable set by the officials in charge. The citizens accepted the OPEN system instantly and the users of the service and visitors to the site have grown rapidly. More importantly, both the citizens who used the system and the city officials who were involved in managing the system tended to have favorable opinions on its corruption control effect as attested by the survey findings. The OPEN system is an e-government innovation with a rich potential for diffusion, for corruption in government (or in business as well) is believed to be prevalent and it neither respects geographical boundaries nor discriminates cultural differences.     

The Politics of Anti-Corruption Campaigns in Putin’s Russia: Power,Opposition, and the All-Russia People’s Front

Abstract

The beginning of Vladimir Putin’s third term was characterised by the politicisation of corruption. Opposition forces focused on corruption and criticised the regime for tolerating it. This article explores how the regime reacted to opposition criticism. The regime encountered a dilemma: it could not ignore the opposition but promoting anti-corruption reforms was risky for the regime. This study focuses on the regime’s use of the All-Russia People’s Front (Obshcherossiiskii Narodnyi Front—ONF) and concludes that it functioned as a ‘parastatal’ anti-corruption movement, enabling the regime to deflect the blame without directly involving itself in the process.     

Analysis of Factors of Overpricing in Public Procurement: A Study for Low-performing EU Countries

ABSTRACT

The paper deals with the issue of overpricing of public procurement in low-performing EU countries. It examines a uniquely large sample of public procurement in 11 Central and Eastern European countries. Hierarchical regression is used to analyze the factors that influence public contract. Our results indicate that institutional factors have a greater impact on overpricing than individual decisions by the contracting authority. Our analysis for low-performing EU countries provides interesting results and also draws attention to behavior that is not typical of the better established and more advanced EU countries. Our results are particularly important for public policy in each country, as they show the direction of regulatory action in the field of public procurement. The results introduce a debate on the appropriateness of “one size fits all” regulations within the EU.     

Why Civil Society Cannot Battle it All Alone: The Roles of Civil Society Environment,Transparent Laws and Quality of Public Administration in Political Corruption Mitigation

ABSTRACT

Utilizing a large-N data that covers about 20000 observations from about 200 countries from 1789 to 2018 from the Varieties of Democracy (V-Dem) project, and anchored on institutionalism as an overarching theory, and the nascent literature on civil-society corruption nexus, the paper looks at the predictive capacity of civil society environment, transparency of laws and predictability of enforcement, and rigorousness and impartiality of public administration in political corruption. Using a four-step hierarchical multiple regression, results show that while civil society and its structure is a significant determinant of the level of political corruption, the introduction of transparency of laws and predictability of enforcement, rigorousness, and impartiality of public administration, and civil society environment in the regression model accounted for additional variance in political corruption. Practical and theoretical implications, particularly on civil society-corruption nexus and the broader corruption-democracy linkage, are discussed.     

Making Plans for Liberia—a Trusteeship Approach to Good Governance?

Abstract

Since the end of the Liberian civil war in August 2003 the international community has been ‘making plans’ for Liberia. However, it rarely questioned whether these plans were in accordance with the political and economic logic of the peace agreement and the subsequent transitional government. The consequence was that corruption continued and a much more intrusive economic management plan was established. The Governance and Economic Management Assistance Programme (gemap) is supposed to combat corruption and facilitate good governance, but it also limits the range of policy options for the new democratically elected government of Ellen Johnson-Sirleaf. The irony is that the best and most legitimate government that Liberia has ever had is subject to stronger external control than any of its predecessors. The probability that this scheme will remain sustainable when donor interest shifts elsewhere is low, and what is needed is a more pragmatic approach that draws a wider segment of Liberian society into anti-corruption management and creates checks and balances between them.     

Who Is Inclined to Hide the Truth: Evidence from Public Procurement

ABSTRACT

This paper presents a survey-based methodological approach to detect potential opportunism by counterparts who are linked with agents through contractual relations. The methodology proposes asking counterparts about attitudes toward some behaviors of agents, which are undesirable from the principal and benevolent counterpart perspective. The approach identifies the potential opportunism of counterparts based on the intensity with which they justify such behavior and provide unrealistic assessments of commonly known problems. The approach is especially important in a situation where the rules are inconsistent with reality and the principal can no longer disentangle the benevolent and opportunistic behavior of the agent. The authors test this approach by conducting a survey of procurers and suppliers of public procurement contracts in Russia.     

Public Administration Reform in Jordan: Concepts and Practices

ABSTRACT

This study reviews the transition of Jordan from a British colony to a modern independent state. It covers contextual attributes influencing the development of the administrative system such as centralization, demographic explosion, low economic growth, excessive reliance on patronage in recruitment for public positions, and corruption. These and other factors hinder administrative reform efforts. As case analysis illustrates, administrative decision making is non-institutional, regularly undermines the merit system, indifferent to accountability, and manifests a low commitment to professional ethics. The study emphasizes that administrative reform in Jordan needs to reconcile these obstacles and to advance skilled and ethical organizational leaders.     

Corruption and the Extractive Industries Transparency Initiative

Abstract

The Extractive Industries Transparency Initiative (EITI) has received much attention as a scheme that can help reduce corruption in mineral-rich developing economies. To our knowledge, this paper provides the first empirical attempt (using panel data) to explore how EITI membership links to changes in corruption levels. We also examine whether the different stages in EITI implementation (initial commitment, candidature, full compliance) influence the pace of changes in corruption. We find that EITI membership offers, on the whole, a shielding mechanism against the general tendency of mineral-rich countries to experience increases in corruption over time.     

Coalition Politics in India: 2004–2009

Abstract

It is posited here that the coalition imperative of holding the alliances together just to keep in office leads to behavior that is not altogether ethically acceptable. This is not to say that all coalitions are bad by definition; they are not. The issue is: how many partners and what the minimum understanding among them are ideal to run the government? It is suggested that a large and unprincipled coalition on the one hand would debilitate a government, and on the other lead to political corruption and even blackmail. Contrarily, a smaller number of parties with some affinity in ideology and a common purpose would be beneficial for a stable democracy. To glean some insights, the United Progressive Alliance coalitions cobbled together by the Congress Party Prime Minister Manmohan Singh in 2004, and consequent to the 2009 elections, are studied here.     

The Importance of Understanding the Anti-Corruption Legislation to Promote Corruption Reporting: Lessons from Mauritius

ABSTRACT

Anti-corruption campaigns usually focus on educating the population. However, little is known about the impact of knowledge, especially understanding of the anti-corruption legislation and the function of Independent Commission Against Corruption (ICAC) body in practice. This study sheds light on the factors influencing the likelihood of reporting a case of corruption in Mauritius. Cross-sectional data are compiled from a household survey with a sample size of 380 observations. To perform the investigation, an ordered probit model is employed. Knowledge about the Prevention of Corruption Act (PoCA) is found to be a crucial variable in determining the functional form of the empirical model. In general, media consumption and knowledge about the PoCA increases the probability of reporting an act of corruption, while Interest in politics decreases the likelihood of reporting a case of corruption to the ICAC. In addition, age, educational attainment, income level, family size and civil status are found to be important predictors of corruption reporting.     

Enduring Inefficiencies in Counterintelligence by Reducing Type I and Type II Errors Through Parallel Systems: A Principal-Agent Typology

The Wolf in Shadows

Leslie Colitt: Spymaster: The Definitive Story of Markus Wolf: The Real‐Life Karla, His Moles, and the East German Secret Police (Reading, MA: Addison‐Wesley, 1995) 302 p., US$23

Altogether Too Much Zeal

Duane E. Clarridge with Digby Diehl: A Spy for All Seasons: My Life in the CIA, New York: Scribner, 1997, 430 p., $27.50

Spying's Delicate Balance

Loch K. Johnson: Secret Agencies: U.S. Intelligence in a Hostile World New Haven: Yale University Press, 1996, 262 p., $30.00     

Human Services Providers’ Perspectives on Refugee Resettlement in the United States before and after the 2016 Presidential Election

Abstract

The United States has historically accepted and resettled refugees by opening its doors to those fleeing violence, armed conflict, or persecution around the world. However, the degree of receptivity toward refugee resettlement has vacillated over time. This study examines the challenges and opportunities that Refugee Resettlement Agencies (RRAs) experienced prior to and after the 2016?U.S. Presidential election. The findings presented in this paper, based on focus groups with the RRA staff, revealed that there is a greater need for understanding the refugee resettlement process and how changing immigration policies impact state-federal funding.