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International anti-corruption instruments

At the international level there are different initiatives, organisations and areas of work that directly or indirectly relate to public contracting, aiming to increase transparency and curb corruption. Among them are international and regional anti-corruption conventions, the efforts of the Development Banks (particularly the World Bank), the OECD Export Credit Group's implementation of the Anti-Corruption Statement, and increasingly, specific measures incorporated in trade agreements to introduce transparency to international business transactions.

As the international community is adamant that corruption has to be halted, multilateral agreements in the form of Conventions and Treaties have been developed in recent years to enhance international cooperation in the fight against corruption and fraud. Most of them include references to the area of public contracting. These developments have substantially changed the landscape in which international transactions take place and seek to level off the attitudes against corruption across the globe.

Procurement activities that take place in the context of development projects funded by international and bilateral donors and Development Banks (international institutions) mobilise a substantial amount of funds. To some countries this represents a substantial portion of the public budget. Corruption hinders development aid effectiveness, and the corruption risk can also be heightened by sudden or substantial influxes of funds. All efforts of Development Banks and donor agencies to increase transparency and hinder corruption in their projects, as well as to support anti-corruption activities, are therefore crucial.

Export Credit Agencies (ECAs) have become powerful players in international business. Their task is to support national companies in their operations abroad. ECAs typically provide export finance in the form of credit guarantees and insurance. Unfortunately, some companies that are supported by their home governments through these means resort to bribing foreign officials to secure their businesses abroad. Although ECAs may be victims of corruption themselves, they also play a role in selecting which projects will receive their support and ensuring that this support is not sponsoring corrupt activities.

Corruption and a lack of transparency distort the potential benefits of trade. Moreover, public procurement also plays a major role in international Trade Agreements. Beyond questions of market access, trade treaties increasingly set up rules to provide transparency, accountability and regulatory standards. If the rules are too many and varied, however, they add to the complexity of the business environment and may undermine the transparency of the system.