The typology of agency models of corruption and the totalitarian corruption case

2021 ◽  
pp. 109-131
Author(s):  
I. V. Beresinets ◽  
A. E. Ivanov

The paper applies a typology of agency models of corruption, based on the conformity of principal and agent’s preferences to the “ideal” preferences of society. The proposed approach has allowed to theoretically substantiate the existence of new models of corrupt behavior, quasi- and totalitarian corruption, and subsequently to reveal cases of such agents’ behavior in the public procurement practice. In conditions of inefficient regulation, developed by the mala fide principal, bona fide agents in an effort to best meet the needs of society may violate certain provisions of regulatory legal acts or regulatory policy principles (quasi-corruption) whilst the mala fide agents do the same things for bribes (efficient corruption). On the other hand, in some cases the agents have to act in accordance with the inefficient regulation, being deprived of the possibility to violate it (totalitarian corruption). In the paper, the discussion of assumptions of different models, presented in the typology, including quasi- and totalitarian corruption, has been found in the academic literature. The paper examines the hypothesis that the proposition of Russian single-source procurement regulation which directly restricts annual small purchasing of contracting authorities provokes totalitarian corrupt behavior of buyers making them use electronic reverse auctions instead of single-source procurement to award small contracts.

2020 ◽  
Vol 6 (1) ◽  
pp. 19
Author(s):  
Deri Yanto ◽  
Vid Adrison

Public procurement is the main area of corruption in the government. This study aims to examine the correlation between government expenditure audit conducted by BPK and local government corruption behavior. This study uses a fixed effect panel regression approach and the dependent variable is the value of irregularities in the public procurement sector in all local governments in      Indonesia. This study found that the government expenditure audit carried out in the previous period correlated with changes in local government corruption behavior. Local governments will reduce corruption behavior as an implication of changing views and calculating expected cost corruption based on their experience of being audited. Besides, local governments expect their probabilities to be re-audited. It is evident in the local government which has not been audited for three years that it will try to reduce its corrupt behavior because it is expected that this year will be audited again. This study suggests an increase in audit frequency that is expected to decrease the aggregate corruption level in public procurement in local government. 


2020 ◽  
Vol 5 (5) ◽  
pp. 136
Author(s):  
Mariia Pysmenna ◽  
Nataliia Pohribna ◽  
Maryna Kalnytska

The purpose of the paper is to set out the in-depth study of how the public procurement performance can be determined through a system that considers the criteria for determining the best (ideal) supplier and the main elements of the assessment of tenders. In order to achieve the goals of the article the following tasks were set: 1) to analyze the development of scientific opinion in the field of public procurement performance assessment; 2) to provide the author’s methodology for determining the criteria of the best (ideal) supplier; 3) to structure the elements of the public procurement procedures assessment system based on the criteria for selecting the best supplier. The paper addresses the need to achieve public spending efficiency by improving the public procurement assessment procedures to determine the best (ideal) provider. Methodology. The study is based on a careful analysis of the criteria for assessing the public procurement effectiveness under the evolution of scientific thought and practice of their implementation. Scientific literature expresses different and opposite views on the criteria, methods of assessment of the public procurement effectiveness by the functioning of customers. Limited research has been identified in the assessment of the procurement proposals at the stage of tendering and determining the best supplier. Results. The paper proposes a system for assessment of the most economically advantageous public procurement offer, taking into account the criterion of selecting the best supplier. This approach involves the unity of five stages of the procurement performance assessment. The characteristics of sequential execution of the assessment in five stages are given as follows: establishment of criteria for the ideal participant of public procurement, development of observations matrices for characteristics of the public procurement participants offers, determination of the vector-standard characteristics of the most economically advantageous proposal, calculation of distances between the characteristics values of the individual participants’ offers and the ideal public procurement offer, the ranking of public procurement bidders, the economic advantage of the offer and the choice of its greatest advantage. The paper provides an opportunity to focus on a systematic approach to determining the public procurement effectiveness. This valuation approach provides a deeper justification for the choice of the procurement vendor, which allows expecting higher procurement performance. Practical implications. The assessment system for public procurement offers, including five stages of the use of procurement performance criteria, can be used by experts to determine the best supplier, regardless of the procurement regulation terms, as its elements provide a comprehensive description of the price and non-price criteria to achieve the effectiveness of procurement procedures. Value/originality. The paper suggests that the selection of public procurement performance indicators to be made within a criteria system based on the selection of the best (ideal) procurement provider. The authors presented their own vision of the components of the public procurement performance assessment system.


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.


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.


Author(s):  
Julio H. Cole

Milton Friedman, who died in the early morning of November 16, 2006, was a world-famous economist, and an ardent and effective advocate of the free market economy. Much of his celebrity derived from his role as public intellectual, an aspect of his work that was reflected largely in popular books, such as Capitalism and Freedom (1962) and the hugely successful Free to Choose (1980) -both co-authored with his wife, Rose (and the latter based on the television documentary of the same title)- and in the Newsweek opinion columns he wrote for many years. Though he was already well-known by the time he received the Nobel Prize in Economics, in 1976, both his stature as public figure and his effectiveness as policy advocate were greatly enhanced by that award, and this is what has been mostly stressed in the vast outpouring of obituaries and public testimonials prompted by his recent passing. It is important to recall, however, that there was another aspect of his career, one which most professional economists (and probably Friedman himself) would regard as far more important than his incursions in the policy arena. Indeed, even if "Friedman the public intellectual" had never existed, "Friedman the economic scientist" would still be renowned and respected (though perhaps not as a bona fide world-class celebrity), and his memory will live long in the lore of economics It is primarily this other aspect of his life and work that I wish to focus on in this essay.


Author(s):  
Michael P. Lynch

This chapter argues that academic freedom is justified because it is an inherently epistemic practice that serves the ideals of democracy. With Dewey, it is argued that “The one thing that is inherent and essential [to the idea of a university] is the ideal of truth.” But far from being apolitical, the value of pursuing truth and knowledge—the value that justifies academic freedom, both within and without the public mind—is a fundamental democratic value, and for three reasons: the practices of academic inquiry exemplify rational inquiry of the kind needed for democratic deliberation; those practices serve to train students to pursue that kind of inquiry; and those practices are important engines of democratic dissent.


2021 ◽  
Vol 13 (2) ◽  
pp. 825
Author(s):  
Jonas Ammenberg ◽  
Sofia Dahlgren

This article departs from the perspective of Swedish regional transport authorities and focuses on the public procurement of bus transports. Many of these public organizations on the county level have the ambition to contribute to a transition involving the continued marginalization of fossil fuels and improved sustainability performance. However, there are several renewable bus technologies to choose between and it can be difficult to know what alternative (or combination) is preferable. Prior research and the authors’ experiences indicate a need for improved knowledge and supportive methods on how sustainability assessments can support public procurement processes. The purpose of this article is to develop a multi-criteria assessment (MCA) method to support assessments of public bus technologies’ sustainability. The method, which was established in an iterative and participatory process, consists of four key areas and 12 indicators. The article introduces the problem context and reviews selected prior research of relevance dealing with green or sustainable public procurement and sustainability assessments. Further on, the process and MCA method are presented and discussed based on advice for effective and efficient sustainability assessments. In the companion article (Part II), the MCA method is applied to assess several bus technologies involving biodiesel, biomethane, diesel, electricity, ethanol and natural gas.


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