State Capture Theme Call for Expressions of Interest

Building on an earlier research grant competition initially managed by the British Academy (2015 – 2017), the first phase of GI ACE ran from 2018 to 2022. Managed by Global Integrity, a Washington-based non-governmental organisation, this research phase comprised 21 projects organised under the themes of the international architecture for anti-corruption, integrity systems, and subnational and sector projects.

The second phase of GI ACE began in 2022 and will run until September 2027. Three short-term projects were commissioned in 2022 to help provide the groundwork for phase two. These projects summarised the state of anti-corruption research for three key themes: Illicit Finance and The Enablers of Corruption; Crisis Responses and Corruption In Vulnerable Sectors; and Corruption Risks in Global Trade and Commerce. In 2023 GI ACE issued a research call inviting proposals for projects under these three themes. An expert panel selected eight projects led by research teams from around the globe. These projects have now been initiated and the research is underway.

The Centre for the Study of Corruption (CSC) at the University of Sussex took over management of the programme in 2024 and, with new funding from the FCDO, GI ACE is pleased to add a fourth research theme on state capture to complement existing research activities. This reflects increasing recognition of state capture as a form of high-level corruption with particularly negative long-term effects on economic, social and political development. As a result, there is significant policy interest in state capture globally, and an opportunity for GI ACE to deliver research to directly influence this agenda. The state capture theme will be overseen by Paul Heywood, GI ACE Programme Director, and Liz Dávid-Barrett, Director of the CSC and Director of Research at GI ACE.

To advance knowledge on state capture and potential policy responses, GI ACE is now inviting research teams to submit an Expression of Interest (EoI) for research under the state capture theme. GI ACE has received approval from FCDO to commission one additional research project to run for two years from March 2025, within a budget of £200,000.

The research must focus primarily on tackling specific corruption-related issues that affect Official Development Assistance (ODA)-eligible countries. We highly encourage proposals from researchers in the Global South or those working closely with Global South partners. We also encourage researchers to collaborate with practitioners who are directly dealing with the challenge of state capture.

Research should be carried out in accordance with the framing principles of ACE:

• Investigating anti-corruption (not just ‘admiring the problem’ of corruption).
• Being problem-focused (rather than proposing generic anti-corruption solutions).
• Focusing on real-world priorities in sectors where corruption is part, but rarely all, of the problem.
• Taking politics seriously (by addressing the feasibility of reform proposals).
• Demonstrating impact (by measuring the effects of interventions on reducing corruption).
• Engaging practitioners from ‘nose to tail’ of the research process.

GI ACE is an interdisciplinary programme and welcomes research from across a range of perspectives, including political science, economics, anthropology, sociology, and socio-legal studies. GI ACE’s research questions will require a combination of research methods, and substantial fieldwork to generate new data, as well as experimental methods where appropriate.

Responding to the forms of corruption observed in transition economies in the former Soviet Union, Hellman, Jones and Kaufmann (2000) first introduced the concept of state capture into the corruption literature. They defined state capture as improper influence over the formation of laws, policies and regulations, distinguishing this from administrative corruption, namely bribery in the implementation of those laws, policies and regulations. This provided a powerful way of explaining how networks of corrupt actors come to shape the so-called rules of the game for their own ends, perpetuating systematic patterns of corrupt exploitation.

Country cases from South Africa to Brazil to Hungary have confirmed that state capture is a widely prevalent and especially harmful form of corruption. Understanding of the problem has also advanced thanks to the work of many experts who have researched capture in different geographies (for example, Chipkin and Swilling, 2018; Rijkers, Freund and Nucifora, 2017; Bozóki, 2012); observed that captor groups hail not only from business but also political parties and organised crime groups (Pavlović, 2021; Comisión Internacional Contra la Impunidad en Guatemala, 2019; Innes, 2014; Gryzmala-Busse, 2008); unpacked how networks of captor elites operate (Chayes, 2015; Wedel, 2001), and developed new tools for measuring this phenomenon (Kaufmann, 2024).

Based on analysis of contemporary cases, Dávid-Barrett (2023) has proposed a framework for analysing state capture which is organised around three pillars: influencing the formation of constitution, law and policy; controlling the implementation of policy by government bodies and the civil service; and disabling accountability institutions. The framework highlights common mechanisms employed by captor elites in each pillar, from improperly shaping laws in critical sectors, to packing key government institutions with their allies, and attacking civil society.

However, more research is needed in a number of areas, for example:

• How do mechanisms of capture operate in different contexts, and how does sequencing vary?
• Which sectors are particularly vulnerable to capture and why, and how do capture dynamics play out in different settings?
• In a globalised economy, how do national elites and international actors – including banks, firms, and professional service providers – collaborate to orchestrate capture and launder corrupt proceeds?
• How can we understand resilience to state capture – how is it that institutions and societies in some low- and medium-income countries have successfully pushed back against captor networks and shown signs of recovery?
• How have strategies pursued by civil society to counter state capture, such as strategic litigation, media campaigns, and the organisation of popular protest, performed in practice, and ultimately how can they be improved?
• How can international firms and banking institutions be incentivised to disengage from partnerships with captor networks and support broader-based economic development?
• How can attempts to measure the development impact of state capture in particular sectors be improved and this data be employed in support of reform?
• What preventative actions can be taken in countries at risk of descending into harmful patterns of capture?
• In countries emerging from a high level of capture, how effective have different models for pursuing justice been in practice? Examples include dedicated corruption courts and commissions.

GI ACE is now inviting research proposals to explore any of these questions and others relevant to building understanding of the challenge of state capture and resilience to it. There is a ready policy audience with interest in these types of questions with organisations including FCDO, the European Commission, the International Monetary Fund and World Bank all engaged with this issue. GI ACE encourages researchers to think about how evidence can inform the work of these practitioners.

Throughout the project cycle, a schedule of publications will be expected from the research team. This schedule should include, as a minimum: policy briefs, working papers, peer-reviewed articles, blogs or press articles, and a final report. We also welcome proposals for longer monographs, though do not expect these to be completed during the period of funding.

Furthermore, we will also expect the researchers to be involved in various engagements of different types. These should include interactions, as appropriate, with government officials and/or international organisations; workshops, conferences, or other events where the research is presented; regional learning events, as appropriate, that share research findings and implications with FCDO country offices.

The deliverables will have an agreed schedule with the selected research team within the two- year timeframe for the project.

We will require the selected team to submit narrative and financial reporting on a quarterly basis. These reports should be brief and indicative of ongoing work throughout the project cycle. The GI ACE management team will provide templates for reporting and work closely with researchers to ensure timeliness and accuracy.

We will also expect team members to attend at least two group meetings with all GI ACE programme research teams and the GI ACE management team. These events will take place at a mid- and end- point of this project, in person wherever possible and most likely in the UK. The project budget proposed should make provision for these meetings.

2024-2025 | Key dates:

Date	Description
25 October 2024	Research teams submit their EoI by 25 October 2024 at 5:00 PM GMT.
October 2024	GI ACE assesses submitted EoIs with the selection panel.
28 October 2024	GI ACE invites selected teams to submit full proposals.
13 December 2024	Full proposals to be submitted by 13 December 2024 at 5:00 PM GMT.
By end January 2025	GI ACE assesses full proposals and offers a contract to the selected team.
March 2025	The contracts are approved and work is set to commence.

Proposals will be solicited using a two-stage bidding process, as follows:

1. Through this EOI, GI ACE is soliciting innovative, feasible, and realistic research ideas in response to the state capture theme outlined.
2. Successful applicants will be chosen by a selection panel based on the quality of their research proposal and how it scored against the evaluation criteria – as listed below.
3. Once the selection panel has assessed all EoIs, we will proceed to invite the shortlisted candidates to submit full proposals by 28 October 2024.
4. We expect to commence research activities in March 2025, once the assessment, approvals, and due diligence are completed.

Evaluation Criteria	Score (max)	Description
Research
Quality of research proposal	50	Describe your research proposal in brief and explain its potential to expand the existing evidence on state capture, deepen the research findings generated by GI ACE thus far, and make valuable contributions to the overall anti-corruption sector.Amongst key questions to consider are: Does your project focus on issues that have not yet received sufficient attention? Would the research generate new and actionable anti-corruption evidence? How does your team plan to collaborate with practitioners? Please note that the research must focus on tackling state capture issues that affect ODA-eligible countries.
Overall approach	15	Describe the research methods that you plan to utilise. Do they have demonstrated potential to facilitate a practical application and engagement with practitioners and development partners in ODA- eligible countries?
Plan for research uptake	10	Describe your plans for the research to be taken up by policy practitioners. Comment on issues of feasibility and practical application.
Deliverables	5	Briefly outline the planned deliverables. What kinds of publications and engagements do you envision during this project?
Feasibility	5	What is the overarching timeline to complete the project satisfactorily and on time? You may wish to include an outline Gantt chart.
Operational Capabilities & Team
Capacity of team	5	Briefly outline the academic credentials of the team members. Does the Principal Investigator (PI) have relevant experience, including having led research teams?
Track record	5	Briefly describe how the Principal Investigator (PI) and the team delivered research in the past. Is there anything in particular that showcases the track record or the potential of the research team?
Financial Cost
Budget and value for money	5	Describe how this project would present good value for money based on the planned budget and deliverables.
Total	100	The total composite score will be a significant factor in the decision over who is invited to submit a full proposal by 13 December 2024.

1. Proposed research team:
   • Name and affiliation of the principal investigator (email required)
   • Name and affiliation of each team member (emails optional)
   • CVs of all research team members (no longer than 2 pages each)
2. Letter of interest (maximum 5 pages) in line with the Evaluation Criteria (table above):
   • Research scope of proposal
     • A proposed title of the project under the state capture theme
     • A summary of research methodology
     • 3-5 research questions
     • Planned outcomes
       • Plan for research uptake (policy impact)
       • Deliverables (provide 2-3 examples)
       • Feasibility (a timeline overview)
   • Operational Capabilities & Team
     • A paragraph about team capacity
     • A paragraph about collective track record (1-2 examples of previous work)
   • Financial Cost
     • A paragraph with a narrative description of the budget (estimate).
     • A paragraph that refers to expected value for money.
3. Proposed budget of no more than £200,000 over 2 years (from March 2025).
   • A fully detailed breakdown of the budget is not needed at this stage, just an estimate under broad headings.