Corruption and Accession

Abstract

The study examines the changes in the locus and incidence of corruption in public procurement during accession to the EU, drawing on the experience of Bulgaria. Using survey data and bottom–up estimate of the cost of corruption, it finds that Bulgaria's accession to the EU marked a shift of corruption upwards from the middle (expert) to the high (political) level of public management with better structured political-business networks and increased cost to society. At the same time control is moving to lower-value contracts. In this context the article discusses the limitations of procurement regulations to deter grand corruption and draws attention to checks and balances in the political setting, which shapes the public–private interface.