The first SEE Good Governance report, published by the R2G4P anti-corruption initiative, focuses on two of the most testing governance vulnerabilities in the region: public procurement and governance of state-owned enterprises in the energy sector.
Public procurement constitutes a substantial portion of GDP in both high- and low-income economies. Across the globe it represents 15% to 30% of GDP. This huge volume of public spending could play a crucial role in economic and social progress if allocated efficiently. However, it is also one of the government activities most vulnerable to corruption. According to the United Nations Office on Drugs and Crime, 10% to 25% of a public contract’s overall value may be lost due to shady practices. While corruption in public procurement can take many forms, there is a clearly definable set of corrupt techniques that are actively used in Southeast Europe to siphon out public money for private gain.