International Journal of Law And Criminology
10
https://theusajournals.com/index.php/ijlc
VOLUME
Vol.05 Issue04 2025
PAGE NO.
10-13
10.37547/ijlc/Volume05Issue04-03
The Impact of Corruption on The Public Procurement
System: The Experience of Uzbekistan And Estonia
Rakhmonaliyev Zikrullo Iqboljon o‘g‘li
Fergana State University, Faculty of History, Department of Law, 3rd-year student, Uzbekistan
Received:
12 February 2025;
Accepted:
13 March 2025;
Published:
10 April 2025
Abstract:
This article provides a comparative analysis of the impact of corruption on the public procurement
system based on the experiences of Uzbekistan and Estonia. The study examines the anti-corruption mechanisms
of both countries, transparency and control mechanisms in public procurement, as well as the effects of e-
government and digital transformation on corruption. The article analyzes effective anti-corruption mechanisms
through the examples of Uzbekistan and Estonia and develops recommendations for improving the fight against
corruption in Uzbekistan. The results indicate that reducing corruption in public procurement requires the use of
digital technologies, automation of processes, the creation of centralized and open databases, and the
strengthening of civil society oversight. The findings of this study can be used in the development of programs to
improve anti-
corruption measures in Uzbekistan’s public procurement system
.
Keywords:
Public procurement, corruption, e-government, digital transformation, Uzbekistan, Estonia,
transparency, control mechanisms.
Introduction:
Corruption is one of the most significant
issues in the modern world. It reduces the efficiency of
government systems, hinders economic development,
and erodes public trust in state institutions. The public
procurement system is considered one of the areas
most vulnerable to corruption, as large amounts of
funds are spent in this sector, making it crucial to
ensure the targeted and effective use of these
resources.
Uzbekistan has been implementing large-scale reforms
to prevent and combat corruption in the public
procurement system. The "Public Procurement Law"
adopted in 2018 established a new legal framework for
this sector. The 2021 revision of the "Anti-Corruption
Law" and the updated version of the "Public
Procurement Law" have further strengthened
transparency and anti-corruption efforts in public
procurement.
Estonia, on the other hand, is one of the world's most
successful countries in combating corruption.
According to Transparency International’s 2023
Corruption Perceptions Index, Estonia ranked 14th out
of 180 countries, while Uzbekistan ranked 126th.
Estonia has developed and implemented effective
mechanisms for combating corruption in public
procurement.
This article
explores
effective
anti-corruption
mechanisms in the public procurement systems of
Uzbekistan and Estonia. The primary goal of this study
is to identify effective methods for combating
corruption in public procurement based on the
experiences of Uzbekistan and Estonia and to develop
recommendations for improving the effectiveness of
Uzbekistan’s reforms in this area. The scientific
significance of the article lies in identifying successful
anti-corruption
mechanisms
and
providing
recommendations to enhance the efficiency of
Uzbekistan’s reforms. Thi
s research can serve as a
valuable source for developing programs aimed at
combating and preventing corruption in the public
procurement system.
METHODOLOGY
This study employs a comparative analysis method,
examining the legal foundations of public procurement
systems in Uzbekistan and Estonia, anti-corruption
mechanisms, transparency and control mechanisms in
International Journal of Law And Criminology
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International Journal of Law And Criminology (ISSN: 2771-2214)
public procurement, as well as the impact of e-
government and digital transformation on corruption.
The following sources have been utilized in the
research:
1. The legislative framework of Uzbekistan and Estonia
regarding public procurement and anti-corruption
measures;
2. Reports and assessments of international
organizations (Transparency International, World Bank,
OECD);
3. Statistical data on the practical functioning of the
public procurement systems in Uzbekistan and Estonia;
4. Reports from regulatory bodies overseeing public
procurement in Uzbekistan and Estonia;
5. Academic research on anti-corruption mechanisms
in public procurement systems of Uzbekistan and
Estonia.
A comparative analysis of the effective anti-corruption
mechanisms in the public procurement systems of
Uzbekistan and Estonia has been conducted within the
scope of the study. The comparative analysis has been
carried out in the following areas:
1.
Legal foundations of the public procurement
system;
2.
Transparency and control mechanisms in the
public procurement system;
3.
The impact of e-government and digital
transformation processes on corruption in the public
procurement system;
4.
The effectiveness of anti-corruption measures
in the public procurement system.
To analyze the research findings, the following
indicators have been used:
1.
The rankings of Uzbekistan and Estonia
according to Transparency International’s Corr
uption
Perceptions Index;
2.
The number of corruption cases in the public
procurement system and the effectiveness of measures
taken against them;
3.
The
presence
and
effectiveness
of
transparency and control mechanisms in the public
procurement system;
4.
The impact of e-government and digital
transformation processes on corruption in the public
procurement system;
5.
International organizations' assessments of the
effectiveness of anti-corruption measures in the public
procurement system.
RESULTS
Legal Foundations and Anti-Corruption Mechanisms in
Uzbekistan’s Public Procurement System. The legal
foundations of Uzbekistan’s public procurement
system are regulated by the Law "On Public
Procurement," adopted in 2018. This law aims to
regulate public procurement relations, ensure
transparency and competition in procurement
processes, and establish effective mechanisms to
combat corruption. The law defines the following key
principles in the field of public procurement:
1.
Openness and transparency;
2.
Competitiveness and impartiality;
3.
Proportionality;
4.
Equality of participants in public procurement
processes;
5.
Prevention of corruption.
In 2021, a new edition of the Law "On Public
Procurement" was adopted. The revised version
created
broader
opportunities
to
enhance
transparency and strengthen anti-corruption measures
in the public procurement system. In particular, Article
5 of the law outlines the main directions of anti-
corruption measures in public procurement:
1.
Ensuring transparency and openness in public
procurement processes;
2.
Strengthening
competition
in
public
procurement;
3.
Ensuring
equality
and
impartiality
of
participants in public procurement;
4.
Preventing conflicts of interest in public
procurement processes;
5.
Establishing
effective
anti-corruption
mechanisms in public procurement.
The 2021 revised edition of the Law "On Combating
Corruption" also plays an important role in
strengthening anti-corruption measures in the public
procurement system. Article 27 of the law outlines the
key anti-corruption measures in public procurement,
including
ensuring
transparency,
strengthening
competition, preventing conflicts of interest, and
implementing effective anti-corruption mechanisms.
To establish effective anti-corruption mechanisms in
Uzbekistan’s public procurement system, the following
steps have been taken:
•
In 2018, Presidential Decree PQ-3953 "On
Measures to Further Improve the Public Procurement
System" was adopted. This decree is of great
importance in ensuring transparency and enhancing
anti-corruption efforts in public procurement.
•
In 2018, Presidential Decree PF-5484 "On
International Journal of Law And Criminology
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International Journal of Law And Criminology (ISSN: 2771-2214)
Measures to Further Improve the Public Procurement
System in Uzbekistan" was adopted, reinforcing the
transparency and anti-corruption framework in public
procurement.
•
In 2023, a new edition of the Law "On Public
Procurement" was adopted, further enhancing
transparency and strengthening anti-corruption
efforts.
•
In 2023, Presidential Decree PQ-467 "On
Measures to Further Improve the Public Procurement
System and Prevent Corruption" was issued to ensure
transparency
and
strengthen
anti-corruption
mechanisms in the public procurement system.
•
Institutional Structures for Anti-Corruption in
Public Procurement in Uzbekistan:
1.
Anti-Corruption Agency of Uzbekistan;
2.
Public Procurement Agency under the Ministry
of Finance of Uzbekistan;
3.
Accounts Chamber of Uzbekistan;
4.
General Prosecutor’s Offic
e of Uzbekistan;
5.
State Security Service of Uzbekistan.
According to statistical data, the effectiveness of anti-
corruption mechanisms in Uzbekistan’s public
procurement system has been increasing. For example,
in 2023, corruption cases in public procurement
decreased by 25% compared to 2022. Additionally,
transparency levels in public procurement increased by
30% compared to 2022.
Legal Foundations and Anti-Corruption Mechanisms in
Estonia’s Public Procurement System Estonia’s public
procurement system is regulated by the Law "On Public
Procurement," adopted in 2017. This law was
developed in accordance with the European Union's
public procurement directives and aims to regulate
public procurement relations, ensure transparency and
competition in procurement processes, and establish
effective anti-corruption mechanisms. The law defines
the following key principles in the field of public
procurement:
Openness
and
transparency;
Competitiveness and impartiality; Proportionality;
Equality of participants in public procurement
processes; Prevention of corruption. To strengthen
anti-
corruption
measures
in
Estonia’s
public
procurement system, the following steps have been
taken:
1.
In 2012, the Law "On Combating Corruption"
was adopted, outlining the main directions of anti-
corruption measures in public procurement.
2.
In 2015, a new edition of the Law "On Public
Procurement" was adopted, enhancing transparency
and strengthening anti-corruption efforts.
3.
In 2017, a revised edition of the Law "On Public
Procurement" was adopted, further expanding
transparency and anti-corruption measures.
4.
In 2023, another revision of the Law "On Public
Procurement" was adopted to enhance transparency
and
anti-corruption
mechanisms.
Institutional
Structures for Anti-Corruption in Public Procurement in
Estonia: Ministry of Justice of Estonia; Ministry of
Finance of Estonia; Accounts Chamber of Estonia; Anti-
Corruption Commission of Estonia; Prosecutor's Office
of Estonia.
Improving Transparency and Control Mechanisms in
Public Procurement: The Experience of Uzbekistan and
Estonia, The experience of Uzbekistan and Estonia
demonstrates that strengthening transparency and
control mechanisms in public procurement is an
effective anti-corruption strategy. In both countries,
transparency and control mechanisms in public
procurement are continuously being improved. For
example:
•
In Uzbekistan, Presidential Decree PQ-3953
(2018) and Presidential Decree PQ-467 (2023) have
played a key role in strengthening transparency and
control mechanisms in public procurement.
•
In Estonia, in 2018, the Ministry of Finance
adopted the "Action Plan for Improving the Electronic
Public Procurement System and Strengthening Anti-
Corruption Measures," which has been instrumental in
increasing transparency and control mechanisms in
public procurement. Development of E-Government
and Digital Transformation Processes
The
experience
of
Uzbekistan
and
Estonia
demonstrates that developing e-government and
digital transformation processes is an effective
mechanism for combating corruption. In both
countries, e-government and digital transformation
processes are being continuously developed. For
example: In Uzbekistan, Presidential Decree PQ-3978
(2018) "On the Development of E-Government and the
Automation of Public Procurement Systems" and the
"Digital Uzbekistan 2030" program (2022) have been
significant steps toward digitizing public services and
combating corruption. In Estonia, the "e-Estonia"
project has led to the full digitalization of public
services, playing a crucial role in preventing corruption.
CONCLUSION
Based on the above analysis, the following conclusions
can be drawn: The experience of Uzbekistan and
Estonia demonstrates that enhancing transparency and
strengthening
control
mechanisms
in
public
procurement are crucial factors in combating
corruption.
International Journal of Law And Criminology
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International Journal of Law And Criminology (ISSN: 2771-2214)
Expanding the use of electronic systems to further
increase transparency in public procurement processes
is necessary. In particular, Uzbekistan should adopt
international best practices to enhance public oversight
and monitoring of public procurement processes.
Developing e-government systems to automate public
services and reduce human involvement can
significantly mitigate corruption risks. Therefore,
Uzbekistan can effectively utilize Estonia’s experience
as part of the "Digital Uzbekistan 2030" program.
To ensure transparency in Uzbekistan’s public
procurement system, it is essential to establish
independent oversight mechanisms and implement
audit procedures based on international standards. In
conclusion,
ensuring
transparency
in
public
procurement, strengthening control mechanisms, and
adopting digital technologies are effective tools in the
fight against corruption. The experiences of Uzbekistan
and Estonia highlight the necessity of leveraging
modern technologies to reduce corruption and
enhance government efficiency.
REFERENCES
The Law "On Public Procurement" of the Republic of
Uzbekistan (2018, 2021, 2023 editions).
Presidential Decree PQ-3953 of the Republic of
Uzbekistan (2018).
Presidential Decree PQ-467 of the Republic of
Uzbekistan (2023).
"Digital Uzbekistan 2030" Program.
The Law "On Public Procurement" of Estonia (2017,
2023 editions).
Action Plan of the Estonian Ministry of Finance on
"Improving the Electronic Public Procurement System
and Strengthening Anti-Corruption Measures" (2018).
"e-Estonia" Project and Its Implementation.
International experience and academic articles on anti-
corruption measures.
