Administrative Corruption: an Obstacle to Business in Southeastern Europe Cover Image

Administrativna korupcija- prepreka poslovanju u zemljama jugoistične Evrope
Administrative Corruption: an Obstacle to Business in Southeastern Europe

Author(s): Srđan Korać
Subject(s): Politics / Political Sciences
Published by: Centar za menadzment
Keywords: southeastern Europe; The Balkans; market economy; rule of law; transition; reform; public administration; customs; tax service; public procurements; bribe; anticorruption; administrative corruption; WB; EBRD; SELDI; Stability Pact; Bosnia and Herzegovina

Summary/Abstract: The building of a market economy in the transitional countries of Southeastern Europe has not yet created favourable business circumstances for an unhindered development of the growing private sector of the economy. Arguably the most significant obstacle to successful private business is the considerable presence of administrative corruption in the public administration structures of the region’s countries. Research conducted by the World Bank and the European Bank for Reconstruction and Development (EBRD) between 1999 and 2002 suggests such a conclusion. The research rates perceptions of administrative corruption by business managers and expresses it by an index ranging from 1 to 4, where 1 indicates that corruption is not an obstacle to business, and 4 indicates that it is the main obstacle. On the ranking list of 27 countries in transition the Balkan countries are placed unfavourably, with average index values between 2.29 and 3.10. Three countries from the Southeast of Europe are placed among the five transitional states with the highest indices of administrative corruption as an obstacle to business, namely Albania, Romania, and Bosnia and Herzegovina.

  • Issue Year: 2004
  • Issue No: 05-06
  • Page Range: 30-35
  • Page Count: 6