IFI Guidelines define “coercive practices” as:
“Impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party.”
Elements of proof
- Impairing or harming, or threatening to impair or harm
- Directly or indirectly
- Any party or the property of the party
- To influence improperly the actions of a party
Impairing or harming, or threatening to impair or harm
To “impair” means to damage, interfere with or block the action of another, such as one bidder blocking another from submitting a bid, or threatening or attempting to do so. “Harm” includes physical injury to persons or damage to a company’s property or business prospects.
Directly or indirectly
“Indirectly” means to act through another party, such as a bidder hiring thugs to intimidate other prospective bidders.
Any party or the property of the party
A party includes any public or private entity, company or individual. The property of a party includes its assets, equipment, business opportunities or profit potential.
To influence improperly the actions of a party
This would include, as indicated above, threats or action by a party to damage the assets or equipment of a company, or the safety of its employees, in order to prevent the company from competing for a contract.