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Euro 2012 – Ukraine’s wasted opportunity?

Author(s): Sławomir Matuszak,Tadeusz A. Olszański / Language(s): English

Ukraine saw hosting the European Football Championship as an important project in terms of image-building and modernisation from the very beginning. The country’s government assumed, during the presidency of Viktor Yushchenko and Viktor Yanukovych alike, that Euro 2012 would provide a major impulse for economic development and show that the young Ukrainian state was capable of successfully preparing one of the most important sport tournaments in the world. Although UEFA’s decision raised eyebrows both in the West and in Ukraine, after initial delays the work gained momentum and, shortly before the championship, Ukraine’s progress could be evaluated as being satisfactory at the least. As part of the preparations, four stadiums were built or modernised, four airports in the host cities were developed and 1,600 km of roads were repaired or built from the ground up. The investments have doubtlessly contributed to an improvement of the infrastructure in Ukraine, but it would be rather inaccurate to say that Euro 2012 has brought about a real modernisation of the country. The funds allocated for the preparations were relatively modest, and part of them was spent in a non-transparent way, which gives rise to suspicions of corruption.

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Still Awake-The Beginnings of Arab Democratic Change

Author(s): / Language(s): English

We are pleased to announce the release of the joint PISM - FIIA report: Still Awake: The Beginnings of Arab Democratic Change, edited by Timo Behr (FIIA) and Patrycja Sasnal (PISM). With the deluge of focused policy analyses and daily news from the Middle East, the report attempts to look at the changes in the Arab world in a long-term and clearly structured perspective along with unorthodox conclusions. It examines five cases of political transition in the Arab world—Egypt, Libya, Morocco, Syria and Yemen—and summarizes the events so far and provides country-by-country timelines. Another distinct aspect of the report is that it has been produced by two major think tanks from European countries that do not have vital interests in the Middle East: Poland and Finland. Apart from the chapters authored by the editors it also features contributions from Hanna Ebeid (ACPSS, Egypt), Sylvia Colombo (IAI, Italy) and two Polish diplomats, Stanisław Guliński and Jakub Sławek.

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Context and Scenarios after the Referendum on Iraqi Kurdistan’s Independence

Author(s): Patrycja Sasnal / Language(s): English

Regardless of whether the referendum on Iraqi Kurdistan’s independence takes place as planned on 25 September, its result is known: most Iraqi Kurds will vote in favour of independence. Depending on how the Kurdistan Regional Government (KRG) uses the result, a negative scenario—the outbreak of violence and further disintegration of Iraq—is still more probable than a positive one that would lead to incremental, peaceful negotiations with the central authorities in Baghdad on greater Kurdish independence. The pressure from regional allies of the Kurds, the U.S., EU, and the UN, seems to be intense enough to stop the Iraqi Kurds from unilaterally declaring independence even if they go ahead with the referendum.

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Protests in Belarus

Author(s): Anna Maria Dyner / Language(s): English

Recent protests in Belarus pose a challenge for the authorities, because along with slogans calling for improved social conditions, which appeared for the first time since the 1990s, the demonstrators have increasingly formulated political demands. So far, the Belarusian authorities have reacted in a limited manner by imposing administrative sanctions almost only on the opposition activists. In the near future, the intensity of the demonstrations will probably continue and may turn massive. Violations of human rights by Belarusian authorities is possible. Moreover, new events may prompt Russia to engage in the country directly.

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German Proposals for Increased Control of Online Media after the U.S. Presidential Election

Author(s): Miłosława Fijałkowska / Language(s): English

The 2016 U.S. presidential election showed that the fight for voters on social media may have resulted in the spread of false information, propaganda and disinformation. In Germany’s upcoming election campaign, a similar scenario may unfold. To prevent it, the German government intends to take preventive measures, but against new forms of online threats they may prove insufficient.

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Intelligence Reports on Russian Interference in the U.S. Presidential Election

Author(s): Marcin Andrzej Piotrowski / Language(s): English

Reports published by American intelligence confirm Russian special services’ interference in the 2016 presidential campaign. Russia used cyberoperations, media and other material to discredit Hillary Clinton to decrease her chances of success in the election and improve Donald Trump’s prospects. Russia’s ambitious operation will have profound consequences for the new U.S. administration and its foreign policy, and for American intelligence agencies. Appointments in the Trump administration are coinciding with ongoing investigations into some of the new president’s advisors’ ties to Russia, and with two U.S. Senate panel inquiries on American intelligence failures and mistakes in cyberdefence.

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Turkey after the Failed 15 July Coup: A Challenge for the EU and the U.S.

Author(s): Karol Wasilewski / Language(s): English

Turkey’s domestic and foreign policy after the failed coup raises concerns for the European Union and the United States. Current developments in Turkey increase the political costs of Western leaders’ closer cooperation with President Recep Tayyip Erdoğan. At the same time, Turkey accuses its allies of hypocrisy and a lack of understanding. Thus, relations between Turkey and its Western allies remain at an impasse, which could force Turkish decision-makers to look for alternative solutions in the political and security spheres. This constitutes a challenge for the EU and the United States, especially in the face of a deterioration of relations with Russia and the migrant crisis.

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№10: New Strategy for Afghanistan? Political Reform – First!

Author(s): Piotr Krawczyk / Language(s): English

The manipulated presidential election of August 2009 has provided new rationale for increasingly negative assessments of the situation in Afghanistan. The Afghans’ growing mistrust of the authorities and the administration looms, alongside the insurgents’ activities, as the country’s gravest problem. The sources of the state’s illness include not only the dismal economy and a lack of security, but a dysfunctional political system divorced from the country’s social realities. The system breeds corruption and conflicts and obstructs the discharge of the state’s fundamental functions. It follows that much of Afghanistan’s instability has internal political roots which, unless removed, will render enduring improvement of the country’s situation impossible.

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Reforms Prospects in Lebanon in Light of the Mass Protests

Author(s): Sara Nowacka / Language(s): English

In October, protests broke out in Lebanon following a proposal to introduce new taxes. The demonstrations, which were unprecedented in uniting members of all religious groups in Lebanon and led to the resignation of Prime Minister Saad al-Hariri, increased the chances the state will make economic reforms and fight corruption. The protesters demand new elections, which are highly unlikely because Hezbollah holds the dominant position in the government and has rejected this idea. A stable situation in Lebanon is in Poland’s interest as it provides aid to the country and Polish soldiers take part in the UNIFIL mission.

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Perspektywy reform w Libanie w świetle masowych protestów

Author(s): Sara Nowacka / Language(s): Polish

W październiku w Libanie wybuchły protesty wywołane propozycją wprowadzenia nowych podatków. Bezprecedensowy charakter demonstracji, które zjednoczyły członków wszystkich grup wyznaniowych w Libanie i doprowadziły do rezygnacji premiera Sada al-Haririego, zwiększa szansę na reformy gospodarcze i walkę z korupcją. Protestujący domagają się nowych wyborów, które jednak są mało prawdopodobne ze względu na sprzeciw dominującego w rządzie Hezbollahu. Ustabilizowanie sytuacji leży w interesie Polski, która przekazuje Libanowi środki na pomoc rozwojową, a jej żołnierze biorą udział w misji UNIFIL.

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Stosunki turecko-amerykańskie w cieniu procesu Rezy Zarraba

Author(s): Karol Wasilewski / Language(s): Polish

W USA rozpoczął się proces z udziałem tureckiego biznesmena Rezy Zarraba, który pomagał Iranowi w omijaniu amerykańskich sankcji. Przyznał się on do winy i został głównym świadkiem prokuratury. Sprawę krytykują tureccy politycy, obawiający się ujawnienia ich roli w tych działaniach. Proces pobudzi antyzachodnią retorykę w Turcji i pogłębi kryzys w stosunkach turecko-amerykańskich. Może także uderzyć w turecką gospodarkę ze względu na rzekomy udział państwowego banku Halkbank w procederze. Przeciągające się trudności w relacjach Turcja–USA są wyzwaniem dla jedności NATO.

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Unijna lista rajów podatkowych: perspektywy i ograniczenia

Author(s): Patryk Toporowski / Language(s): Polish

Unia Europejska pracuje nad stworzeniem wykazu pozaunijnych rajów podatkowych. Ma on zapobiegać unikaniu opodatkowania przez korporacje. Może się jednak okazać nieskuteczny w walce z transferem nieopodatkowanych zysków poza UE. Polska, jako państwo tracące nawet do 10 mld euro rocznie na unikaniu płacenia CIT, może dołączyć do grupy państw najaktywniej zabiegających o zacieśnianie współpracy w tej dziedzinie.

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Transparent Public Procurement in Bosnia and Herzegovina: New Solutions for an Old Problem

Author(s): Nermina Voloder / Language(s): English

Although the adoption of the Law on Public Procurement for Bosnia and Herzegovina in 2014 introduced a series of new provisions aimed at improving transparency in the public procurement process, there are still significant limitations in this domain that can have significant negative implications in practice. Among other things, the legal framework has not ensured adequate availability of information on planned public procurement, given that public procurement plans are not published on the public procurement portal. The published procurement plans do not include procedures for lower value contracts, and decisions on these contracts are not published. There is a manifest lack of provisions that would contribute to publishing the contracts signed between the public sector and the suppliers. In addition, there are no guidelines developed for the application of tender evaluation criteria, especially criteria for the economically most favourable tender. It is, therefore, crucial to improve legal regulations to remove the identified shortcomings and ensure a significantly higher level of transparency in public procurement in Bosnia and Herzegovina.

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Transparency of Public Procurement in Bosnia and Herzegovina - Between Theory and Practice

Author(s): Nermina Voloder / Language(s): English

Transparency is often singled out as one of the key indicators of a just and functional public procurement system, and it refers to the availability of all relevant information that enables stakeholders to become familiar with the rules and procedures applied in the public procurement process. If a public authority fails to ensure a sufficient level of transparency, it is impossible to ascertain whether the public procurement procedure was conducted impartially and in line with the rules. In that context, transparency in the implementation of public procurement contributes to increasing the accountability of public authorities and more efficient control of public spending. Contracting authorities in Bosnia and Herzegovina (BiH) are under the obligation to transparently conduct public procurement procedures and ensure fair and equal treatment of all tenderers in order to achieve the best value for public money. These principles are stipulated in the Law on Public Procurement in Bosnia and Herzegovina (hereinafter: LPPBiH) adopted in April 2014 as part of the public procurement system reforms and harmonisation of domestic legislation with European Union acquis. The new, modernised legal framework was established in BiH ten years after the adoption of the first Law on Public Procurement in 2004, which had shown numerous shortcomings in practice, including some to do with transparency. Although the new law introduced better norms for the aspect of transparency in public procurement, shortcomings that may have significant implications in practice are still evident. One of the aims of this analysis is to assess the extent to which the legal framework ensures an adequate level of transparency in public procurement in BiH, and how transparency could be improved. The analysis offers insight into the main obstacles to transparency in public procurement, especially in light of international standards and comparative practices, focusing primarily on existing legal and institutional solutions in this domain. It should be noted that the new Law on Public Procurement of BiH has been in force only since November 2014, and that certain bylaws relevant to transparency have not yet been adopted. That is why at this stage of research, insight into the practice of public procurement is still limited. This report focuses on the obligations of public institutions stipulated under the Law on Public Procurement of BiH to independently publish key information on public procurement that will enable the public procurement procedure and provide public insight into the process for awarding contracts. Access to all public information in the possession of any institution in BiH, including specific information on public procurement, may also be requested in line with the laws on free access to information adopted at the state and entity level, but this aspect of transparency is not the subject of the present analysis. This report takes into account the main conceptual discussions of transparency in public procurement processes. It then gives an overview of international standards in this area, focusing on European Directives for conducting public procurement procedures, and on decisions of the European Court of Justice. It also presents comparative practices in transparent public procurement in European Union countries with innovative approaches to improving the public procurement system, such as Slovakia and Portugal. The legal frameworks and practices of Western Balkan countries that have in the past few years made innovations to their legal and institutional frameworks for public procurement as part of the European Union approximation process are subject to a separate analysis. This primarily pertains to the experiences of Croatia, Serbia and Slovenia. Past reports on these issues, as well as the old and new legislative and institutional framework are also analysed. Finally, interviews were conducted with representatives of key institutions, including the Public Procurement Agency (hereinafter: PPA) and the Procurement Review Body (hereinafter: PRB), as well as with representatives of the business community in BiH.

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Analysis of Legal Protection in Public Procurement Procedures in Bosnia and Herzegovina

Author(s): Stanka Pejaković / Language(s): English

Legal protection in public procurement procedures implies a set of legal norms which govern the mechanisms available to participants in these procedures with the objective of protecting their rights and interests. The legal protection framework ensures the realization of several important objectives of public procurement. Competitive and transparent procedures in public procurement assist legal public authorities to get the best value for money when they procure products and services. This results in cost-effective spending of public funds, faster economic growth and greater competitiveness among entrepreneurs. Open and transparent procedures in public procurement influence prevention of discrimination, cronyism and corruption. From the standpoint of the European Union (EU) the objective of public procurement is also to open the market of public procurement for member states, enabling the participation of entrepreneurs in public procurement procedures outside the boundaries of a particular state. Legal protection is very important for the realization of the above objectives of public procurement. Legal protection regulations should ensure equal legal position for all entrepreneurs in public procurement, the efficient and timely implementation of public procurement procedures, and should also enhance legal security in this area. Unregulated or insufficiently regulated legal protection may cause direct damage to the economy as it enables the choosing of bids that are not necessarily the best. The fallout of this includes other negative effects (political, economic, sociological). Efficient legal protection increases the trust of the public in the transparency of procedures, and encourages entrepreneurs to participate in public procurement procedures. Efficient legal protection can also act as a preventive measure against a concrete contracting authority or other contracting authorities, in the sense of ensuring that there is no infringement of public procurement rules. Apart from their prominent position in any legal system, national norms regarding legal protection in the EU member states, candidate status states and accession states are founded in European Law, and as such, they are the result of the harmonization of national legislation with the requirements of European law. In this way the harmonization of legal protection in member states, candidate states and potential candidates is achieved. The request for harmonized procedures in member states derives from an understanding that different procedures in different states have a negative impact on the functioning of a unified European market. The European legislation is important for Bosnia and Herzegovina (BiH) not only as an instrument for the strengthening of the economy, but also in respect of the commitments undertaken earlier to gradually harmonize BiH legislation with that of the EU. One of the areas where BiH legislation is harmonized with European law is the area of public procurement. The subject-matter of this study is legal protection in public procurement procedures in Bosnia and Herzegovina, which is implemented as an administrative and administrative-judicial protection, in the manner of critically deliberating the relevant issues of legal protection of participants in public procurement procedures. The present analysis deals with the existing rules that govern legal protection in public procurement procedures having in mind the potential consequences of incomplete or inadequate regulation, which affects the rights and interests of participants in public procurement procedures. Above all, this study is focused on the analysis of rules which govern the basic legal remedy available to participants in the public procurement procedures against the decision of the contracting authority of the aforementioned action or omission of action or the procedure of the contracting authority, followed by an analysis of appeal in an administrative dispute. In this sense, the present study suggests the direction of possible legal intervention which could improve the legal protection rules in public procurement procedures in BiH with regard to the relevant European and comparative law. Accordingly, in addition to a review of legal protection in accordance with the existing de lege lata, this study also includes questions with regard to what this protection should be in view of the requirements of European law (de lege ferenda). The initial assumption in this analysis is that legal protection in any state is regulated independently, but the autonomy of member states (and future member states that have already undertaken some commitments) is restricted by EU rules. As a result, the conclusions in this study inevitably deal with the influence of the relevant European law regarding the provision of effective legal remedies in public procurement procedures by observing the practice of the European Court of Justice in Luxembourg (the European Court), and the regulations that govern the availability of legal remedies in the area of legal protection in some member states that have implemented European law (such as Croatia and Slovenia). The objective of this study is to see what lessons can be drawn from the experience of the aforementioned states and in what manner these lessons can be applied in BiH law with the aim of further improving the legislation of legal protection. Thus an insight is gained about the relationship between legal regulation and practice, and in this respect the inadequacies in the existing legal protection norms in public procurement procedures in BiH can be observed. The presentation of the methodological and analytical framework of this study (Chapter 2) is followed by a summary of the relevant EU legal acts (Chapter 3) and a subsequent analysis of the legal and institutional framework of public procurement in BiH (Chapter 4). In the chapter on legal protection (Chapter 5) procedural rules are analyzed. The results of this analysis are summed up in the Conclusion (Chapter 6). In Chapter 7 there is a list of proposals for possible decisions with regard to the previously recognized problems.

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Recommendations for the Improvement of Legal Protection in Public Procurement Procedures in Bosnia and Herzegovina

Author(s): Not Specified Author / Language(s): English

Legal protection in public procurement procedures implies a set of legal norms that regulate the mechanisms available to participants in public procurement procedures in Bosnia and Herzegovina (BiH) if participants consider that the decision brought by a contracting authority violates their rights and legal interests. An appropriate normative framework also ensures the realization of fundamental objectives of legal protection in public procurement procedures such as inspiring competition and preventing discrimination, cronyism and corruption. On the basis of such a normative framework, provision of goods and services at the best value for money is ensured, as well as cost-effective spending of public funds, faster economic growth and harmonization with the fundamental principles and other standards of European law.

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Mapping of Key Obstacles to Equal Participation of Companies in Public Procurement in Bosnia and Herzegovina

Author(s): Nermina Voloder / Language(s): English

The public procurement system in Bosnia and Herzegovina (BiH) is characterised by numerous weaknesses and shortcomings. In the ten years of application of the BiH Law on Public Procurement, a range of irregularities in public procurement procedures have been identified, including practices of privileging individual bidders through discriminatory criteria and technical specifications in tender documentation, dividing procurement value into smaller amounts to avoid implementing the public procurement procedure for higher amounts, procurements of goods, services or works without a public procurement procedure, use of annexes to existing contracts to increase the value of procurement, and other ways of changing the terms of contracts based on public procurement procedures. Irregularities and abuses in public procurement have, among other things, contributed significantly to the spread of corruption and to hindering the operation of the private sector in BiH. Research has shown that corruption is one of the most significant obstacles to the work of private companies and to overall economic development, not just in BiH, but in countries of the region as well. Reports by international and non-governmental organisations and representatives of the business sector in BiH have for the past few years pointed out failings and irregularities in the public procurement system that undermine the basic principles of fair and active competition, transparency, equal treatment of bidders, and efficient and responsible public spending. This report resulted from the need to identify key problems in public procurement based on surveying a representative sample of the business community with direct experience of public procurement in BiH. The report is based on the findings of research conducted during 2014 with the main aim of mapping the major obstacles faced by companies in BiH entering public procurement procedures in BiH. Representatives of private enterprises of various sizes (micro, small, medium and large enterprises) and from various branches of the economy throughout BiH participated in the study. The study provides insight into the views and perceptions, as well as the reallife experience of business sector representatives in BiH when it comes to various aspects and phases of public procurement. In that context, this is the first survey study in BiH that identifies key problems in public procurement by relying on the views and experiences of business sector representatives that have participated in public procurement procedures. For the purposes of this report, which presents the main obstacles to the participation of enterprises in public procurement, the respondents answered questions about issues such as availability of public procurement invitations for submitting bids, definitions of eligibility criteria and technical specifications, application of appropriate procedures, transparency of outcomes, legal protection, public procurement contract implementation control, perception of the degree of corruption in public procurement, trust in the fairness and justice of public procurement procedures, etc. The examination of practices that hinder efficient market functioning and the identification of areas of heightened risk of corruption were also recognised in strategic documents of BiH authorities as a necessary measure for the development of efficient anti-corruption policies in BiH. The present study naturally fits into this normative and strategic framework. Namely, given that public procurement is particularly vulnerable to corruption, data from this report can prove useful as guidance for decision makers in BiH working to improve the public procurement regulatory framework and practices. The report first presents the main features of the public procurement system and gives details of the research methodology. Research results that reflect the experience of private sector representatives in public procurement in BiH are set out in the fourth chapter and divided among all the phases of the public procurement cycle. The conclusion sums up the key results and indicates further research and analyses necessary in this area.

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Key Problems in Public Procurement in Bosnia and Herzegovina: Experiences of Private Companies

Author(s): Nermina Voloder / Language(s): English

A survey conducted by Analitika in 2014 showed that the business sector in Bosnia and Herzegovina (BiH) faces numerous obstacles when it comes to participation in public procurement procedures. The survey responses indicate that problems crop up in all phases of the process: during the development of tender documents, the collection and evaluation of tenders, and the implementation of the contract. The majority of respondents believe corruption is widespread in public procurement, and that political or personal connections are a prerequisite for being awarded public procurement contracts. Furthermore, there is a pervasive lack of trust among the business community in the public procurement system and in the likelihood of corruption and irresponsible public spending being sanctioned. The prevalent view is that companies are forced to participate in corruption in order to survive in the market.

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Syria’s Assad Regime Using Drug Smuggling as a Political Tool

Author(s): Sara Nowacka / Language(s): English

The need to combat drug smuggling from Syria to other Arab countries has contributed to their leaders’ decision to normalise relations with Bashar al-Assad in order to convince him to curb the practice. The dismantling of the Assad-run captagon production and smuggling network is also becoming a priority of Western countries’ Middle East policy due to the increasing flow of the drug into Europe as well.

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Belarus Facing Growing Domestic Problems

Author(s): Anna Maria Dyner / Language(s): English

The Belarusian authorities continue to suffer the consequences of rigging the 2020 presidential elections and their support for Russian aggression against Ukraine, which have resulted in a significant reduction in political and trade contacts with Western countries. To maintain internal stability, the regime is stepping up repression and attempting to militarise society by portraying external threats. Although the risk of regime collapse is not high, the EU should be prepared to increase its support for the democratisation of Belarus.

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