Corruption Manual for Beginners: 'Corruption Techniques' in Public Procurement with Examples from Hungary
74 Pages Posted: 30 Sep 2013 Last revised: 6 Dec 2013
Date Written: November 29, 2013
This paper develops 30 novel quantitative indicators of grand corruption that operationalize 20 distinct techniques of corruption in the context of public procurement. Each indicator rests on a thorough qualitative understanding of rent extraction from public contracts by corrupt networks as evidenced by academic literature, interviews and media content analysis. Feasibility and usefulness of the proposed indicators are demonstrated using micro-level public procurement data from Hungary in 2009-2012. While the prime value of this broad set of indicators is the possibility of combining them into a robust composite indicator of high-level corruption, the high degree of detail also reveals that many regulatory interventions have succeeded in changing the form of corruption, but not its overall incidence.
Keywords: public procurement, grand corruption, corruption technique, corruption indicators
JEL Classification: D72, D73, H57
Suggested Citation: Suggested Citation