Corruption Manual for Beginners: 'Corruption Techniques' in Public Procurement with Examples from Hungary

74 Pages Posted: 30 Sep 2013 Last revised: 6 Dec 2013

See all articles by Mihaly Fazekas

Mihaly Fazekas

Central European University (CEU); Government Transparency Institute

István János Tóth

Hungarian Academy of Sciences (HAS)

Lawrence P. King

Yale University - Department of Sociology

Date Written: November 29, 2013

Abstract

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

Fazekas, Mihaly and Tóth, István János and King, Lawrence P., Corruption Manual for Beginners: 'Corruption Techniques' in Public Procurement with Examples from Hungary (November 29, 2013). Corruption Research Center Budapest Working Paper No. CRCB-WP/2013:01, Available at SSRN: https://ssrn.com/abstract=2333354 or http://dx.doi.org/10.2139/ssrn.2333354

Mihaly Fazekas (Contact Author)

Central European University (CEU) ( email )

Quellenstrasse 51
Vienna, 1140
Austria

Government Transparency Institute ( email )

Kecskemét
Hungary

István János Tóth

Hungarian Academy of Sciences (HAS) ( email )

Budapest
Hungary

Lawrence P. King

Yale University - Department of Sociology ( email )

493 College St
New Haven, CT 06520
United States

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