Economic and political determinants of public procurement corruption in developing countries: An empirical study from uganda
| DOI | https://doi.org/10.1108/JOPP-11-01-2011-B002 |
| Pages | 33-60 |
| Published date | 01 March 2011 |
| Date | 01 March 2011 |
| Author | Benon C. Basheka |
| Subject Matter | Public policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue |
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 11, ISSUE 1, 33-60 SPRING 2011
ECONOMIC AND POLITICAL DETERMINANTS OF PUBLIC
PROCUREMENT CORRUPTION IN DEVELOPING COUNTRIES: AN
EMPIRICAL STUDY FROM UGANDA
Benon C. Basheka*
ABSTRACT. This paper examines the economic and political determinants of
public procurement corruption in Uganda. Using data from 548 respondents
in the public, private and NGO sectors of Uganda, the paper identifies critical
economic and political determinants of public procurement corruption in
Uganda. All over the world, the attention of policy makers, academics,
development partners, the general public, civil society organizations and
politicians has been drawn to the negative effects of corruption on
development and the delivery of effective services. Corruption; a
phenomenon as old as man himself (Shabbir & Anwar, 2007) has recently
risen to the top of the development agenda, particularly in the developing
economies. It is this recognition that leads to investigation of why corruption
exists and what makes it so differently widespread among countries (Serra,
2004). Unlike in the past where corruption research was the preserve of
economists and political scientists, today other disciplines like public
procurement have significant interest. This paper compares the emergent
results with local and international literature. It presents a number of
theoretical and managerial implications for addressing the “disastrous
monster” of procurement corruption in the context of the developing world.
INTRODUCTION
Corruption, a phenomenon as old as man himself (Shabbir &
Anwar, 2007), has recently risen to the top of the development
agenda, particularly in developing economies. Although interest in
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* Benon C. Basheka, Ph.D., is Senior Lecturer, and Head of the Higher
Degree Department, Uganda Management Institute. His research interests
are in governance, Public Procurement corruption, central and local
government procurement systems, and procurement monitoring and
performance systems.
Copyright © 2011 by PrAcademics Press
34 BASHEKA
corruption as a factor affecting development has a long history
(Ampratwum, 2008; Thai, 2008; Kaufman, 1997), concern about the
negative social and economic impacts of corruption has recently
grown rapidly in both emerging economies and advanced
democracies (Akai, Horiuchi & Sakata, 2005) due to the growing
evidence of its detrimental impact to development (World Bank,
2004). However existing empirical research on the subject is usually
hampered by the lack of detailed and comparative data on the
problem. No region and hardly any country have been immune from
corruption (Glynn, Patrick, Stephen, Kobrin & Naim, 1997). Like
cancer, corruption strikes almost all parts of society and eats the
cultural, political and economic fabric of society and destroys the
functioning of the vital organs (Amundsen, 1999).
Economic crime and corruption have become major issues in a
number of countries (Salifu, 2008). Government procurement in a
number of developing countries is equally receiving increasing
interest. The interest in public procurement corruption in Uganda
develops from a number of factors like the following: (a) the amount
of government expenditure on acquisition processes, coupled with its
increasing misuse and declining professionalism; (b) the number of
procurement scandals nationally and globally; (c) the desire by donors
to minimize the risk of foreign aid being contaminated by corruption
(Andvig & Fjeldstad, 2000); (d) serious deficiencies in efficient and
effective public services due to poor performance of state
institutions; (e) the demand for good corporate governance given its
undisputed breeding ground for corruption(Wu, 2005); (f) the demand
for transparency and accountability from the electorates; (g) the
increasing public sector reforms and the desire to identify cost cutting
areas; (h) increasing role of the media and civil society organizations
in citizen awareness and exposure of unethical acts by government
(Robinson, 2004); and finally (j) “growing” interest by political leaders
both in government and opposition to improve service delivery as a
way of getting electoral support from the masses. Efforts to improve
service delivery usually force the authorities to address corruption
and its causes (Shah, 2006).
Public procurement is a function of government that is most
prone to corruption, particularly in developing countries, where there
is insufficient transparency and competition (Thai, 2008).
Procurement is one of the fundamental links in the supply chain of
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