After the Rain : how the West lost the EastVaknin, Samuel
History
After the Rain : how the West lost the East
Vaknin, Samuel
Europe, Eastern -- Economic conditions -- 1989-; Europe, Eastern -- Politics and government -- 1989-
This, precisely, is the problem with public procurement: people are too
acquainted with the purchased items. They tend to confuse their daily,
household-type, decisions with the processes and considerations, which
should permeate governmental decision-making. They label perfectly
legitimate decisions as "corrupt" - and totally corrupt procedures as
"legal" or merely "legitimate", because this is what was decreed by the
statal mechanisms, or because "this is the law".
Procurement is divided to defence and non-defence spending. In both
these categories - but, especially in the former - there are grave,
well founded, concerns that things might not be all what they seem to
be.
Government - from India's to Sweden's to Belgium's - fell because of
procurement scandals, which involved bribes paid by manufacturers or
service providers either to individual in the service of the state or
to political parties. Other, lesser cases, litter the press daily. In
the last few years only, the burgeoning defence sector in Israel saw
two such big scandals: the developer of Israel's missiles was involved
in one (and currently is serving a jail sentence) and Israel's military
attaché to Washington was implicated - though, never convicted - in yet
another.
But the picture is not that grim. Most governments in the West
succeeded in reigning in and fully controlling this particular budget
item. In the USA, this part of the budget remained constant in the last
35 (!) years at 20% of the GDP.
There are many problems with public procurement. It is an obscure area
of state activity, agreed upon in "customized" tenders and in dark
rooms through a series of undisclosed agreements. At least, this is the
public image of these expenditures.
The truth is completely different.
True, some ministers use public money to build their private "empires".
It could be a private business empire, catering to the financial future
of the minister, his cronies and his relatives. These two plagues -
cronyism and nepotism - haunt public procurement. The spectre of
government official using public money to benefit their political
allies or their family members - haunts public imagination and provokes
public indignation.
Then, there are problems of plain corruption: bribes or commissions
paid to decision makers in return for winning tenders or awarding of
economic benefits financed by the public money. Again, sometimes these
moneys end in secret bank accounts in Switzerland or in Luxembourg. At
other times, they finance political activities of political parties.
This was rampantly abundant in Italy and has its place in France. The
USA, which was considered to be immune from such behaviours - has
proven to be less so, lately, with the Bill Clinton alleged
election-financing transgressions.
But, these, with all due respect to "clean hands" operations and
principles, are not the main problems of public procurement.
Public-domain text, read in full here on John Shaqi.
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