scholarly journals Corruption in the Times of Pandemia

Author(s):  
Jorge Gallego ◽  
Mounu Prem ◽  
Juan F. Vargas

The public health and economic crisis caused by the COVID-19 pandemic has pushed governments to substantially and swiftly increase spending. Consequently, public procurement rules have been relaxed in many places to expedite transactions. However, this may also create opportunities for inefficiency and corruption. Using contract-level information on public spending from Colombia’s e-procurement platform, and a difference-in-differences identification strategy, we find that municipalities classified by a machine learning algorithm as more prone to corruption react to the spending surge by using a larger proportion of discretionary non-competitive contracts and increasing their average value, especially to procure crisis-related items. Additionally, in places that rank higher on our corruption scale, contracts signed during the emergency are more likely to have cost overruns, be awarded to campaign donors, and exhibit implementation inefficiencies. Our evidence suggests that these negative shocks may increase waste and corruption, and thus governments should bolster instances of monitoring and oversight.

2021 ◽  
Vol 43 (2) ◽  
pp. 361-369
Author(s):  
Krzysztof Horubski

The article characterises selected legal solutions applied in the process of public contract award in the realities of the nationalised centrally-planned economy in the times of the Polish People’s Republic. In the study, manifestations of discrimination of private businesses in the access to public contracts are presented. Such discrimination was one of the foundations for the legislation applicable at the time. The article also highlights other features of legal acts of statutory rank governing contracts awarded by state-owned organisational units, such as the fragmented nature of their regulations, including the omission of regulations governing the procedure of reaching an agreement and executing a contract. This allowed formulating conclusions about the merely superficial role of the provisions on supplies, services, and works for state entities and the fundamental inability of these regulations to play the role attributed to public procurement in the market economy, consisting in deploying the mechanism of competition between entrepreneurs for cost-efficiencies in public spending.


2019 ◽  
Vol 10 (1 (32)) ◽  
pp. 35-44
Author(s):  
Justyna Bednarz-Szymak

In a globalisedworld, innovationis the driving force of the economy. In Poland, the public sector can support innovation to a large extent thanks to the Public Procurement Law, amended in 2016, which introduced a new procedure - innovation partnership. Judging by the scale of public spending, public procurement can become a powerful tool for the development of innovation in the economy. The aim of this article is to examine how innovation partnership can influence the effectiveness of investment projects. The assessment of processes related to the purchase of innovative solutions by the public sector with the use of public procurement and the innovation partnership mode shows that the use of this mode in various sectors of the economy may significantly improve the quality of tasks performed by them. In the study, the model method was applied based on the evaluation of the practice of using innovation partnerships in selected countries and the analysis of the transferability of these solutions to Poland. The evaluation took into account the specificity of public procurement procedures and innovation partnerships resulting from legal conditions and the national socio-economic environment. Weaknesses in the application of this procedure were identified, which cause that the innovation partnership is not a commonly used mode of investment projects implementation, and recommendations were formulated in order to reversethis trend.  JEL Classification: O30, O31, O38 


Author(s):  
Tünde Tátrai

A közpénzelköltés hatékonyságát hazai viszonylatban az éves közpénzköltés nagyságával és az alkalmazott eljárástípusok, beszerzési tárgyak számával, értékével kapcsolatosan van lehetősége a hivatalos statisztikák elemzése során az érdeklődőnek vizsgálni. A törvény preambulumában található „a közpénzek ésszerű felhasználása átláthatóságának és széles körű nyilvános ellenőrizhetőségének megteremtése, továbbá a közbeszerzések során a verseny tisztaságának biztosítása” célrendszer csak részben érvényesül. A tanulmány arra kíván rávilágítani, hogy a hazai közbeszerzés-kutatás eredményei alapján milyen elképzelés van a GDP közel 5%-án hatékony elköltéséről Magyarországon. Vajon valódi akadálya-e a közbeszerzés a tisztességtelen versenynek, s elősegíti-e a piaci folyamatok érvényesülését annak szabályozása. A szerző válaszai rávilágítanak a közbeszerzési piaci folyamatok, gyengeségek, kevésbé hatékony megnyilvánulások és kritikus vélemények okaira, melyek közvetlen kapcsolatban vannak a közbeszerzés válságos helyzetével, s azonosítják azokat a kritikus pontokat, melyeken érdemes változtatni egy reménybeli hatékonyabb állapot, piaci egyensúlyi helyzet kialakítása érdekében. _______ The analysis of public spending can be based on official statistics showing the figures of annual public spending and the value and number of different procedures and purchased items. However, public procurement spending an annual amount of 1600-1800 billion HUF of public money in an ever changing legal environment, are intended to ensure not only some efficiency in public spending, but to reach several other aims as well. Although the preamble of the public procurement law states, that “a legal environment ought to be created, where the transparency and public accountability of spending public money and fair competition regarding public procurement procedures is ensured”, these requirements are only partially met. This study, based on the results of recent analyses concerning public procurement, wishes to represent our ideas about how to spend efficiently nearly 5% of the Hungarian GDP. Is it really true, that public procurement can be regarded as a genuine means against unfair competition, and can we really foster market processes by regulating public procurement? The author answers highlight the causes of the weaknesses of public procurement procedures, inefficient practices and critical opinions, which are closely connected to the present dire state of public procurement. This study also identifies the crucial elements to be changed in order to achieve a hopefully more efficient state and a preferable market balance.


2021 ◽  
Vol 16 (4) ◽  
pp. 47-54
Author(s):  
R. I. Tugushev

The paper is devoted to analyzing the category of “public expenditure”, its comparative analysis with the category “budget expenditures” in doctrinal understanding and according to the legislative definition. On the basis of relative and absolute data, the author highlights the trend towards an increase of the share of national projects in the overall structure of public expenditure, as well as the trend towards annual increases in direct expenditures from the federal budget. The author concludes that it is necessary to consolidate the thesis on priority financing of national projects in the allocation of budgetary funds at the federal law level. The author analizes the place of allocations for the implementation of national projects in the updated Budget Classification and determines a number of features of budget financing of national projects. The paper elucidates the legal mechanisms of adjustment of national projects financing on the basis of the legislation, highlights the modernization of financial instruments in the field of public procurement, trends in the field of distribution of the inter-budgetary transfers with co-financing. The author highlights the importance of retrospective analysis of information on the performance of budgetary allocations by the key spending units of federal budget funds in the previous fiscal year for the purpose of prospective planning. The conclusion is made about facilitating the integration of the format of national projects into the system of strategic planning with the medium and long-term perspective.


2003 ◽  
pp. 68-80
Author(s):  
A. Dementiev ◽  
A. Zolotareva ◽  
A. Reus

The most important measures stimulating the increase of efficiency and effectiveness of budget expenditures on road construction are the improvement of pricing mechanisms and increasing efficiency of the procedures of government purchases of goods, works and services. The paper includes the analysis of main problems that arise in the process of government purchases and construction pricing with the reference to budget expenditure on road construction. It includes the review and analysis of international experience and possible measures of increasing the efficiency and effectiveness of government purchases and (road) construction pricing in Russia.


2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.


2020 ◽  
Vol 16 (5) ◽  
pp. 860-884
Author(s):  
V.G. Kogdenko ◽  
A.A. Sanzharov

Subject. The article deals with the analysis of suppliers in the public procurement system based on reasonable prequalification parameters. Objectives. The aim is to test the hypothesis about strong reputation characteristics of the winners in the public procurement system and develop a methodology for assessing the reputation of suppliers for prequalification purposes. Methods. We employ general scientific principles and methods of research, like abstraction, generalization of approaches used by domestic and foreign authors for prequalification and assessment of reputation of public procurement participants. Results. To test the hypothesis, we calculated four groups of indicators on corporate, financial, market, and social components of reputation. The methodology was tested on the data obtained from SPARK-Interfax and SPARK-Marketing information resources. Conclusions. The study revealed that not all reputational characteristics of public procurement winners can be regarded as high level. In terms of the corporate component, it is the low level of share capital, indicating the mistrust on the part of owners and their reluctance to invest in the business, and the low percentage of non-current assets. In terms of the market component, it is a low sales growth rate, as well as low return on sales. As to the financial component, it is a low capitalization of winners, low share of long-term debt capital and low credit limit. With respect to the social component, it is a below-average tax burden.


Author(s):  
Konrad RÓŻOWICZ

Aim: In the practice of awarding public contracts, sometimes the behavior of market actors, instead of competing with other entities, are aimed at illegal cooperation, including bid rigging. The above shows that healthy competition is not possible without efficient market control. In public procurement market this control is, primarily, carried out by public procurement entities: the President of the Public Procurement Office (Prezes UZP) and the National Appeal Chamber (KIO), and furthermore by President od the Office of Competition (Prezes UOKiK) and Consumer Protection and the Court od Competition and Consumer Protection. and Consumer Protection (SOKiK). The interesting issue is how the activities of the President of Office of Competition and Consumer Protection targeted  to contend with bid rigging affects on the activities of President of the Public Procurement Office (Prezes UZP) or the National Appeal Chamber (KIO). Design / Research methods: analysis and comparison decisions/ judgment issued by the President of the Public Procurement Office, National Appeal Chamber, the President of  the Office of Competition and Consumer Protection and the Court of Competition and Consumer Protection. Conclusions: The analysis has shown that the existence of specificities in the activities of the decision-making bodies and the judgments examined. However, in keeping with the specificity of the forms and objectives of control, these entities should cooperate, to a greater extent than before. Expanding the scope of cooperation would make it possible to better contend with bid rigging without changing the competition protection model. The introduction of institutionalized instruments for cooperation between the authorities seems to be valuable in terms of system solutions. Value of the article: The main value of the article is the comparison of selectively selected decisions and judgments representative of the problem under consideration and their comparative analysis in order to achieve the research objectives. The article deals with issues relevant to both public procurement practitioners and the state bodies dealing with procurement matters.


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