Transitions to Good Governance: Creating Virtuous Circles of Anti-corruption

Why have so few countries managed to leave systematic corruption behind, while in many others modernization is still a mere façade? How do we escape the trap of corruption, to reach a governance system based on ethical universalism? In this unique book, Alina Mungiu-Pippidi and Michael Johnston lead a team of eminent researchers on an illuminating path towards deconstructing the few virtuous circles in contemporary governance. The book combines a solid theoretical framework with quantitative evidence and case studies from around the world. While extracting lessons to be learned from the success cases covered, Transitions to Good Governance avoids being prescriptive and successfully contributes to the understanding of virtuous circles in contemporary good governance.

Offering a balanced but always grounded perspective, this collection combines analytic narratives of existing virtuous circles and how they were established, with an analysis of the global evidence. In doing so the authors explain why governance is so resistant to change, and describe the lessons to be remembered for international anti-corruption efforts. Exploring the primacy of politics over economic development, and in order to understand how vicious circles can be broken, the expert contributions trace the progress of countries that have successfully transitioned. Unprecedentedly, this book goes beyond the tests of different variables to showcase human agency on every continent, and reveals why some nations make the best and others the worst of the same development legacies.

This comprehensive examination of virtuous circles of governance will appeal to all scholars with an interest in transitions, democratization, anti-corruption and good governance. Policy-makers and practitioners in the fields of international development, good governance and democracy support will find it an invaluable resource.

Reviews for this publication

“Vicious cycles, where corruption breeds corruption, present special challenges. Nevertheless, some success stories exist. The case studies in this edited volume highlight reforms that created virtuous cycles, where honesty breeds honesty. Nevertheless, the authors caution that reforms may be fragile and incomplete if policies do not shift expectations and behavior sufficiently enough toward a new, less-corrupt status quo.”

Susan Rose-Ackerman, Yale University

How Does Political Finance Regulation Influence Control of Corruption? Improving Governance in Latin America

In this paper, we address the question of how political finance regulation affects control of corruption in Latin America from a quantitative perspective. We present a Political Finance Regulation Index with panel data from 180 countries over 20 years (1996-2015). This index was developed using the IDEA Political Finance Database, and once created, was applied to assess the relationship between political finance regulation and control of corruption.

In order to do this, we use the equilibrium model of control of corruption developed by Mungiu-Pippidi (2015). We also included judicial independence and public investment, considered as a constraint and an opportunity to corrupt, respectively. Lastly, we use control variables for level of development.

Results show that, in Latin America, increases in political finance regulation are related with a deterioration of control of corruption. This relationship is statistically significant in the panel estimations. Inversely, the negative relationship between regulation and control of corruption becomes positive in countries with high levels of judicial independence. In a similar way, increases in opportunities to corrupt, represented by levels of public investment, have a significant and negative effect in control of corruption.

Process-tracing report on Costa Rica

This paper track Costa Rica’s long transition from a particularistic to a universal ethical society using a process tracing mythology. It argues that the origins of Costa Rica’s success began in the early 20th century followed by three subsequent tipping points that resulted in limiting opportunities for corruption. Each of these tipping points enhanced corruption-free governance through the devolution of political power across the branches of government, the decoupling of the executive branch’s control over state accountability agencies, the creation of new agencies whose actions expanded the anticorruption capacity of state agencies, and the remove of legal impediments on the media to investigate and publish stories about corrupt officials. It details the central role of the media in the most recent period as a public watchdog investigating and reporting on many cases of apparent corruption by public officials. It also identifies many recent cases where the media (traditional and internet-based) initiated investigations into corruption before the state’s official anti-corruption agencies investigated and prosecuted them. The analysis draws on primary research and interviews with former and current public officials, magistrates, historians, and investigators.

Understanding governance virtuous circles: who succeeded and why

Why do some societies manage to control extraction of public resources in favour of particular interests, so that it only manifests itself occasionally, as an exception (corruption), while others societies do not and remain systemically corrupt? Is the superior performance of the first group of countries a result of what they do, or of who they are?

ERCAS is hosting a conference at the European Academy in Grunewald, Berlin from 8-12 July 2015 that will address these questions. The conference, ‘Understanding Governance Virtuous Circles. Who succeeded and why’ is part of the EU FP7 research project ANTICORRP: Anticorruption Policies Revisited: Global Trends and European Responses to the Challenge of Corruption. Our researchers have identified seven countries (Uruguay, Estonia, Chile, Costa Rica, Taiwan, South Korea and Georgia) as the most successful in achieving control of corruption in the past 25 years. We would like to address why and how these countries have been successful and what lessons can be learned from them.

Spaces are extremely limited, but the conference will be live tweeted and a conference report will be published by Cambridge University Press.

 

Speakers:

  • Dr. Mart Laar (ex-prime Minister, Estonia) (by video)
  • Prof. Robert Klitgaard (Claremont Graduate University)
  • Prof. Larry Diamond (Stanford University)
  • Mr. Philip Keefer (World Bank)
  • Prof. Michael Johnston (Colgate University)
  • Prof. Adam Graycar (Australian National University)
  • Prof. Eric Uslaner (University of Maryland)
  • Prof. Ryan Saylor (University of Tulsa)
  • Dr. Mark Plattner (Journal of Democracy)
  • Dr. Natalia Matukhno (Centre for the Study of Public Policy/School of Government and Public Policy)
  • Dr. Martin Mendelski (University of Trier)
  • Dr. Mark Pyman (TI Defense and Security UK)
  • Dr. Daniel Buquet (Universidad de la República de Uruguay)
  • Prof. Bruce Wilson (University of Central Florida Costa Rica)
  • Prof. Patricio Navia (Universidad Diego Portales/New York University)
  • Prof. Paul Felipe Lagunes (Columbia University)
  • Dr. Valts Kalnins (Centre for Public Policy PROVIDUS)
  • Dr. Alexander Kupatadze (University College London)
  • Dr. Marianne Camerer (University of Cape Town)
  • Dr. Halyna Kokhan (UNDP Ukraine)
  • Dr. Anastassia Obydenkova (Harvard University)
  • Prof. Christian Göbel (University of Vienna)
  • Dr. Yong-sung You (The Australian National University)
  • Dr. Mihaly Fazekas (Corvinius University of Budapest)
Agenda Virtuous Circle Conference – Current as of 05 July 2015.

 

Conference papers:

 

Helpful documents:

 

 

Background paper on Costa Rica

In spite of the economic and social policy successes of Latin America’s longest surviving democracy, corruption has become a major problem shaking Costa Ricans’ confidence in appointed and elected public officials. In response to the apparent rise in corruption since the start of the new millennium, governments have introduced new laws and created new agencies to combat corruption at all levels of society, with an emphasis on combating particularism by elected and appointed public officials. This report evaluates the apparent increase in corruption, the efforts to limit, expose, and prosecute corrupt acts, and the factors that have facilitated the rise in corrupt actions on the part of state officials and private citizens. In short, acts of corruption that may have previously gone unnoticed (at least unproven) are now exposed by a more aggressive media and prosecuted by new and/or stronger state anti-corruption agencies and laws in response to multiple major political corruption scandals of the early 2000s. State prosecutors show no deference in their investigations of corruption and/or illicit enrichment by public officials and private figures, no matter how powerful. The only limitation is the level of resources available to these agencies. The contemporary increase in the scope of corruption is not in the quotidian actions of low-level officials directly affecting the lives of ordinary citizens, but in influence trading and manipulation of formal processes. A separate, more recent and growing corruption problem comes from international drug cartels that have amplified their activities and money laundering in Costa Rica that some fear might outstrip the state’s capacity to keep corruption under control.