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The Extent Of Single Sourcing In Defence Procurement And Its Relevance As A Corruption Risk: A First Look

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  • Mark Pyman
  • Regina Wilson
  • Dominic Scott

Abstract

Single-source, or non-competitive, defence procurement is a widespread phenomenon that is prevalent both in developing countries and in advanced arms exporting countries. The usual competitive bidding process - which assists in both value-for-money evaluation and in lowering corruption risk - is used much less often than expected in defence procurement. Whilst there can be good reasons for single sourcing, the opportunities and inducements for corruption are significantly escalated. Further, some countries that claim to employ single-source only in rare instances are found to have high percentages of non-competitive defence procurement. This is of particular concern as defence is perceived to be one of the more corruption-prone international business sectors, as identified in the 2002 Bribe Payers Index (Transparency International, 2002), with procurement presenting a significant source of corruption risk. The work presented here gives data on the percentage of defence single source procurement in a number of countries. Some countries were transparent and open about this data, even where it showed them in an unfavourable light. Most were not, citing sensitivity reasons or even that the data did not exist as reasons for refusal.

Suggested Citation

  • Mark Pyman & Regina Wilson & Dominic Scott, 2009. "The Extent Of Single Sourcing In Defence Procurement And Its Relevance As A Corruption Risk: A First Look," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(3), pages 215-232.
  • Handle: RePEc:taf:defpea:v:20:y:2009:i:3:p:215-232
    DOI: 10.1080/10242690802016506
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    References listed on IDEAS

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    1. International Monetary Fund, 2000. "Corruption and Military Spending," IMF Working Papers 2000/023, International Monetary Fund.
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    Cited by:

    1. Marcus Matthias Keupp, 2021. "Introduction: The Fundamental Economic Problem of the Military," Springer Books, in: Defense Economics, chapter 0, pages 1-21, Springer.
    2. Marcus Matthias Keupp, 2021. "Institutions and Armed Forces," Springer Books, in: Defense Economics, chapter 0, pages 23-65, Springer.

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