The Anticorruption Report. Volume 3: Government Favouritism in Europe

This volume reunites the fieldwork of 2014-2015 in the ANTICORRP project. It is entirely based on objective indicators and offers both quantitative and qualitative assessments of the linkage between political corruption and organised crime using statistics on spending, procurement contract data and judicial data. The methodology used in the analysis of particularism of public resource distribution is applicable to any other country where procurement data can be made available and opens the door to a better understanding and reform of both systemic corruption and political finance. The main conclusion of this report is that public procurement needs far more transparency and monitoring in old Member States, where it is far from perfect, as well as new ones and accession countries, where major problems can be identified, partly due to more transparency and monitoring.This policy report is the third volume of the policy series “The Anticorruption Report” produced in the framework of the EU FP7 ANTICORRP Project. The report was edited by Prof. Alina Mungiu-Pippidi, PhD from the Hertie School of Governance, head of the policy pillar of the project.

Print and e-book versions of all full reports can be purchased here.

Reviews for this publication

Public infrastructure projects and other types of government procurement almost everywhere in the world suffer from favoritism and corruption, if not outright criminality. The spoils always go to the people with the right connections, wealth, or the willingness to use or threaten violence. This is among the most difficult aspects of governance for scholars to study: those who talk don’t know, and those who know don’t talk. This slim volume summarizes detailed studies of favoritism in Bulgaria, Croatia, Hungary, Italy, Romania, Turkey, and Ukraine. A final chapter shows how criminal organizations in many countries—including Mafia-like groups in Bulgaria and Italy—infiltrate national and EU-level public spending projects. Each chapter is packed with a remarkably rich set of charts, graphs, and statistical analyses that capture how much corruption exists and how it works. These succinct and eye-opening quantitative estimates of what really goes on beneath the surface of government make for indispensable reading and should straighten out anyone who doubts that the powerful always find ways to reinforce their influence and wealth, even on the “cleanest” of continents.

Andrew Moravcsik, Professor of Politics and International Affairs, Princeton University in Foreign Affairs

The Quest for Good Governance. How Societies Develop Control of Corruption

Why do some societies manage to control corruption so that it manifests itself only occasionally, while other societies remain systemically corrupt? This book is about how societies reach that point when integrity becomes the norm and corruption the exception in regard to how public affairs are run and public resources are allocated. It primarily asks what lessons we have learned from historical and contemporary experiences in developing corruption control, which can aid policy-makers and civil societies in steering and expediting this process. Few states now remain without either an anticorruption agency or an Ombudsman, yet no statistical evidence can be found that they actually induce progress. Using both historical and contemporary studies and easy to understand statistics, Alina Mungiu-Pippidi looks at how to diagnose, measure and change governance so that those entrusted with power and authority manage to defend public resources. The Quest for Good Governance presents a comprehensive empirical theory of governance unifying important disparate contributions in the areas of corruption, quality of government and rule of law and is the first attempt to directly answer the big question of what explains virtuous circles in good governance. It features research and policy tools to diagnose and build contextualized national strategies. The book was published on 27 August 2015 as a paperpack and hardcover.

Please find more information, as well as order the book on the website of Cambridge University Press.

Reviews for this publication

This is one of the most important books ever written on the most universal governance challenge of our time – how to control corruption. In this brilliant integration of theory, history, case studies and quantitative evidence, Alina Mungiu-Pippidi shows how countries move from the natural state of corruption, clientelism and particularistic governance to the impersonal norms of fairness, integrity and transparency that make for good governance. This is an indispensable work for any scholar, student or policy-maker who wants to understand how societies mobilize and states reform to control corruption.

Larry Diamond, Center on Democracy, Development and the Rule of Law, Stanford University, California

 

Along with Tilly and Acemoglu and Robinson, Mungiu-Pippidi in this volume smartly re-frames the nature of the modern state.

Elsewhere in her superbly thoughtful and conceptually enriching book, Mungiu-Pippidi focuses on how the Italian city-states in their rise to republicanism largely contained corrupt practices and, by focusing on equality, avoided the kinds of wholesale corruption that is (and has been for years) widespread in the modern Italian state.

Fortunately, Mungiu-Pippidi’s remarkable book provides a welcome trove of possible solutions to the historical problem of corruption”.

Robert Rotberg “Considering Corruption’s Curse: Venality across Time and Space”. Journal of Interdisciplinary History, Summer 2016

 

The Quest for Good Governance combines sophisticated conceptual discussion (for example, of the varying definitions of corruption and their consequences) with a historical perspective and a critical statistical analysis of various databases.  It is a good example of a multi-method approach to a huge and complex problem… I find this an accomplished and important book, and one which deserves very wide readership”.

Christopher Pollitt in International Review of Administrative Sciences, vol. 82:3, 2016

 

Reformers who read this essential book will learn rather than seeking ‘toolkits’ to attack specific corrupt activities, successful societies have made integrity and accountability widely-accepted norms, backed up by the self-interest of a wide range of citizens. Alina Mungiu-Pippidi makes clear that societies which keep corruption under control have succeeded not just a due to their present laws and enforcement, but through a longer-term story of political development, widespread expectations and the building of effective performance of public institutions.

Michael Johnston, Charles A. Dana Professor of Political Science Emeritus, Colgate University

 

Mungiu-Pippidi writes that creating collective action and providing political support is the only proven effective strategy against corruption. Specialists will appreciate the comprehensive summary and review of the literature … Highly recommended.

E. Hartwig, Choice

 

“Reading the book was really a roller-coaster… It touches upon all the key issues of corruption: It looks at measurement, theory, at policy; it uses quantitative methods, but also process tracing tools. It’s really a tour de force on various things and, while you might not agree with all of its conclusions, it really is a textbook even though it’s not a textbook on corruption”.

Finn Heinrich, Research Director at Transparency International

 

“What I was impressed by was the historical depth and the combination of various methods, from court case analysis to survey data and econometrics. You really had the impression to get a comprehensive picture. What I was also impressed by was the refusal to give easy and simple answers. This is not a cookbook; it’s a book to think about very specific cases and come up with very specific solutions.”

Hans-Dieter Klingemann, WZB

 

A strong argument for framing the anti-corruption debate in terms of ethical universalism and impartiality with a focus on grassroots citizen involvement. Mungiu-Pippidi realistically acknowledges the difficulty of lasting reform, but at the same time she usefully seeks to move the policy debate beyond platitudes to concrete proposals that can attract domestic support and fit local contexts.

Susan Rose-Ackerman, Henry R. Luce Professor of Law and Political Science, Yale University

 

Mungiu-Pippidi’s work is a significant contribution to our understanding of the subject, and one to which policymakers and international donors should pay attention. Her work systematically explores the failed and successful trajectories of different countries in arriving at norms of universalism in governance. It is an important work in its welcome focus on the importance of societal norms in creating and sustaining various types of political corruption, and in the finding that what matters most is not international efforts, but domestic ones… [ The book] would be a welcome addition to an advanced undergraduate or graduate course on the political economy of corruption, and on the political economy of development. It should also serve as required reading for domestic and international policymakers, donors, and NGO activists concerned about corruption.

Carolyn M. Warner, Arizona State University, in Governance, June 2016

 

A brief review can scarcely do justice to Mungiu-Pippidi’s complex and subtle achievement. Her book is a powerful synthesis of theory, empirical analysis, and policy prescription. She is not just a scholar but also a leading anticorruption campaigner in her home country of Romania. She has known both the sweet savor of success in promoting an anticorruption agenda, and the bitter aftertaste that comes when it falters and particularism returns. This experience underpins her analysis, and the resulting combination of hard-edged realism and scholarly care gives her writing considerable power. Readers who are familiar with a country where corruption is part of the fabric of social and political affairs—my own speciality is Indonesia—will discover many moments of recognition in these pages, as well as a framework to aid understanding and useful lessons about how to move forward. The Quest for Good Governance deserves to have a major impact on how scholars and practitioners understand corruption, and on their efforts to help societies overcome it.”

Edward Aspinall, Professor in the Department of Political and Social Change in the Coral Bell School of Asia Pacific Affairs at the Australian National University, in the Journal of Democracy.

The Anticorruption Report. Volume 2: The Anticorruption Frontline

From Turkey to Egypt, Bulgaria to Ukraine, and Brazil to India, we witness the rise of an angry urban middle class protesting against what they see as fundamental corruption of their politicalregimes, perceived as predatory and inefficient. Corruption is near the top of all global protesters’ list of grievances – from the Occupy movement to the Arab Spring. There is increasing demand for good governance resulting in quality education and health systems, and denunciation of sheer bread and circus populism. Volume 2 of the ANTICORRP Anticorruption Report tackles these issues across key cases and developments.

Print and e-book version of the report can be purchased here.

Quantitative report on causes of performance and stagnation in the global fight against corruption

Why do some societies manage to establish control of corruption and others not? Control of corruption is defined in this report as the capacity of a society to constrain individual corrupt behavior (defined as particular distribution of public goods leading to undue private profit) in order to enforce the norm of individual integrity in public service and politics as well as to uphold a state that is free from capture by particular interest.This report sought to answer this main research question from an interdisciplinary perspective and by a large-N comparison method. For the dependent variables, the report uses: the aggregated Control of Corruption Index (CoC) from World Bank, the Corruption Risk Index from the International Country Risk Guide (ICRG), the experience with bribe and perception of official’s corruption from Global Corruption Barometer 2013, the experience with bribe and perception of favoritism from ANTICORRP’s own QOG 2013 European survey, the expert perception of diversion of public funds from World Economic Forum Global Competitiveness Survey and the tolerance towards corrupt practices from World Values Survey 2008.

A Comparative Assessment of Regional Trends and Aspects Related to Control of Corruption in the Middle East and North Africa, Asia and the Pacific, Sub-Saharan Africa, Latin America and the Caribbean, and the Former Soviet Union

This report analyses the status and dynamics of the control of corruption in five world regions: the Middle East and North Africa, Asia and the Pacific, Sub-Saharan Africa, Latin America and the Caribbean, and the Former Soviet Union. The diverse nature of corruption across the globe is shown by the huge variance within each single region; this variety of corruption is not only related to degrees of corruption but also to the peculiarities and effects of opportunities and constraints for corruption and the trajectories control of corruption or the lack thereof. In the MENA region material resources are abundant, while constraints are weak. Corruption prevails as a persistent social practice and a political strategy. Apart from few but notable exceptions, most countries in Asia and the Pacific as well as in Sub-Saharan Africa perform very poorly on control of corruption. Many of the small Caribbean island states have curbed corruption effectively, but the control of corruption in Latin American region shows little progress otherwise. The Former Soviet Union shows the lowest degree of the control of corruption worldwide. Existing evidence from regional achievers provide multiple insights into the dynamics for the control of corruption. Across these five regions two different pathways stand out: first, authoritarian regimes, with the strong willingness to reduce opportunities and strengthen (nondemocratic) restraints, and, second, democratic regimes with a strong and independent anti-corruption legislation, which is backed up by an independent judiciary have been able to successfully fight corruption. The report draws on the model of control of corruption as a balance between resources and constraints (Mungiu-Pippidi et al. 2011) to review in more detail the contributing factors. These continental comparisons complement the background reports of ‘achiever countries’.

Background paper on Estonia

As in all transition countries, corruption has been and remains a concern for Estonia. Still the country is an obvious top-achiever in comparison with the rest of the post-communist area. On the other hand, the last decade has been stable with the level of corruption almost unchanged and representing a certain plateau in development. The Estonian governance regime operates mostly in line with the principle of ethical universalism. Reportedly all key elements of the state are subject to quite high formal standards of transparency. Correct functioning of the public procurement system is the rule, and violations, although common, are more of an exception. Estonia appears to have a high level of equity of access to its education and healthcare systems.The search for causes of Estonia’s success often focuses on cultural factors. The high general level of interpersonal trust in the Estonian society is an unusual cultural feature of a post-soviet society. Plus the civil society and free media represent high normative constraints for corruption and particularism. It has been argued that in the beginning of 1990’s, Estonia experienced the most radical replacement of the political elite compared with Latvia and Lithuania where the old “nomenklatura” networks managed to perpetuate to a much larger extent. The new Estonian elite was willing and ready for thorough reforms of the judiciary and public administration.

Background paper on Botswana

When compared to its African peers, Botswana is globally acknowledged for its relatively good democratic governance, prudent economic management and sustained multi-party system of government. Botswana’s postcolonial leaders have been given credit for their visionary leadership which has successfully blended modern and traditional institutions to create a participatory and economically viable democracy from an originally poverty-stricken country that was still being governed under traditional ideas of leadership when it achieved independence in 1966. Botswana has used the rule of law to transform a semi-autocratic traditional governance system of chiefs and associated centralised decision-making structures into relatively representative and transparent institutions of central and local government. The current system of governance is largely anchored in principles of both competition and merit as modes of operation, but although corruption  was not a critical challenge during the country’s earlier post-independence years, in the two decades from about 1990 it has become a serious and growing feature of Botswana´s society. This case study analyses the evolution of corruption as a major challenge to the sustaining of Botswana’s democratic and development. The main aim of this country report is to establish by use of meaningful indicators the state of corruption in Botswana and to depict societal responses in their attempts to control it.

Background paper on Qatar

Qatar is judged by international anti-corruption indices to be among the highest performing countries in the Middle East and North Africa. The Qatari government has streamlined its regulations regarding business practices and engaged in reforms from above that have liberalized the Qatari economy and increased its strength and viability. However, Qatar is a neo-patrimonial absolute monarchy in which the state is not immune from private interests, and where the ruling family can bypass the rule of law. The complete control by the monarch of state institutions and policies leaves no space for bottom-up calls for reform, or for independent assessment of the performance of the state and the actions of the ruling family by civil society and the media. The permeation of informal networks (mainly in the form of tribal relations) within state institutions and civil society, the lack of interest in and avenues for political participation among Qatari citizens, and the clientelistic relationship between citizens and the state support the continuation of this status quo. This paper analyses the structures and mechanisms of Qatar’s governance regime that reveal the contradictions inherent within the categories covered by anti-corruption indices. In doing so, it suggests a number of shortcomings in the methodologies and scope of those indices as they specifically apply to Qatar, and poses a number of questions regarding the kind of information that is difficult to find but which is crucial to address in order to form a clearer picture of corruption and anti-corruption practices in Qatar. The paper concludes that the absence of this information in the first place casts a shadow of doubt over the performance of Qatar in anti-corruption indices. Also, the indices’ focus on measuring the scope of state functions while not measuring the strength of state institutions is a key reason behind the discrepancy between Qatar’s anti-corruption ranking and the mechanisms and structure of its governance regime. Instead, the paper proposes specific indicators related to the governance regime that allow for a more comprehensive look at corruption and anti-corruption practices in Qatar.

Corruption in Qatar? The Link between the Governance Regime and Anti-Corruption Indicators

Qatar is judged by international anti-corruption indexes to be among the highest performing countries in the Middle East and North Africa. The Qatari government has streamlined its regulations regarding business practices and engaged in reforms from above that have liberalized the Qatari economy and increased its strength and viability. However, Qatar is a neo-patrimonial absolute monarchy in which the state is not immune from private interests, and where the ruling family can bypass the rule of law. The complete control by the monarch of state institutions and policies leaves no space for bottom-up calls for reform, or for independent assessment of the performance of the state and the actions of the ruling family by civil society and the media. The permeation of informal networks (mainly in the form of tribal relations) within state institutions and civil society, the lack of interest in and avenues for political participation among Qatari citizens, and the clientelistic relationship between citizens and the state support the continuation of this status quo. Author Lina Khatib analyzes the structures and mechanisms of Qatar’s governance regime that reveal the contradictions inherent within the categories covered by anti-corruption indexes. In doing so, she suggests a number of shortcomings in the methodologies and scope of those indexes as they specifically apply to Qatar, and poses a number of questions regarding the kind of information that is difficult to find but which is crucial to address in order to form a clearer picture of corruption and anti-corruption practices in Qatar. The author concludes that the absence of this information in the first place casts a shadow of doubt over the performance of Qatar in anti-corruption indexes. Additionally, the indexes’ focus on measuring the scope of state functions while overlooking measuring the strength of state institutions is a key reason behind the discrepancy between Qatar’s anti-corruption ranking and the mechanisms and structure of its governance regime. Instead, Khatib proposes specific indicators related to the governance regime that allow for a more comprehensive look at corruption and anti-corruption practices in Qatar.

The Anticorruption Report. Volume 1: Controlling Corruption in Europe

The first volume of the Anticorruption Report series provides a comprehensive analysis of causes and consequences of corruption in three European regions, presenting corruption risks for several European countries and concrete policy recommendations on how to effectively address those risks.

Print and e-book version of the report can be purchased here.

The Good, the Bad and the Ugly: Controlling Corruption in the European Union

For many years corruption was seen as a problem only of developing countries, while the European Union (EU) on the contrary was the temple of the rule of law, exporting good governance both to its own peripheries and worldwide. Many European countries indeed remain among the best governed in the world, although the downfall of the Santer Commission on charges of corruption, the enlargement of the EU by its incorporation of new member countries with unfinished transitions, and the economic crisis all strongly indicate that control of corruption is difficult to build and hard to sustain. Older member countries Greece, Italy, Portugal and Spain have all regressed rather than progressed since they joined – the first two of them to worrying levels – and that has raised doubts about the EU’s transformative effect on its members.

Corruption and Politics in Uruguay

Transparency scores in Uruguay have improved in the last fifteen years in both absolute and comparative terms. This paper argues that this change is the result of a long-run process of transformation in Uruguayan politics from competitive particularism to an open access regime. First, this paper briefly reviews the political and institutional changes that led governance in Uruguay to be based on universalistic norms. Next, it uses public opinion and elite survey data to provide descriptive evidence about citizen perceptions of levels of corruption. Third, the paper uses media data to explore the place that corruption held in the public agenda during the last fifteen years. Finally, using court records, it evaluates the efficacy of existing structures to punish abuses. These analyses help to clarify the main features that lie behind the categorization of Uruguay as a contemporary achiever in terms of government transparency.

Corruption: A Modern Day Hydra. Understanding the monster through the eyes of the people.

The present paper considers corruption to be a deeply complex phenomenon that should be broken down to its essential components in order to develop a deeper understanding of it. Therefore, in this study, corruption shall be broken down into three categories which are namely judicial, bureaucratic and political corruption. These three forms of corruption are “same but different” as even though they all entail the deviation of norms, the scale and effects they have on the society are in fact very different. This paper shall seek to fill the gap by examining and identifying the drivers of corruption through the lens of the general public by using data obtained from TI’s Global Corruption Barometer (GCB). In addition, this study shall also seek to prove that people’s perception of corruption offer valuable insights and should thus be used to triangulate with expert’s opinions to derive a more robust and holistic measure of corruption.

Contextual Choices in Fighting Corruption: Lessons Learned

Why is it that despite unprecedented investment in anti-corruption in the last fifteen years and the implementation of global monitoring and legislation, so few countries managed to register progress in fighting corruption? This new report commissioned by the Norwegian Agency for Development Cooperation (NORAD) to the Hertie School of Governance aims to see what could be learnt from weaknesses in current support to fighting corruption at country level and identify approaches that can be more effective in fighting corruption in different governance contexts.

The report revealed that conceptual flaws, imprecise measurement instruments and inadequate strategies are to blame for the lack of progress in fighting corruption. But it also argues that the quest for public integrity is a political one, between predatory elites in a society and its losers and fought primarily on domestic playgrounds. As such, the donor community can play only a limited part and it needs to play this part strategically in order to create results. Based on new statistical evidence, the report recommends cash-on-delivery/selectivity approaches for anti-corruption assistance. Effective and sustainable policies for good governance need to diminish the political and material resources of corruption and build normative constraints in the form of domestic collective action. Most of the current anti-corruption strategies, on the contrary, focus on increasing legal constraints, which often fail because most interventions are localized in societies that lack the rule of law.

Beyond Good Governance: Performance of the International Anticorruption Institutional Arsenal Put to the Test

With political corruption posing a serious threat to democracy and its consolidation, anticorruption efforts have in recent years shifted from a reduced reliance on political tools to an increased support of the legislative and institutional means. The present thesis, using quantitative cross-sectional models, analyzes the performance of four, highly advocated, institutional transplants. Results suggest that an installment of the Freedom of Information Acts (FOIA) can, in the presence of an active civil society and attentive opposition to the governing structures, significantly decrease levels of corruption in a country.

Transitions to Good Governance: the Case of El Salvador

El Salvador has changed much in the last 20 years. It has managed to move from a previous military regime and a civil war to a democracy, but this process is still in progress. The country must yet face a number of weaknesses to continue its transition to good governance, particularly regarding the development of an active civil society, a free and impartial press and lower levels of corruption. Assistance from foreign donors will be an important support to future improvements, especially concerning the strengthening of civil society and institutional capacity building to fight corruption more effectively.

Transitions to Good Governance: the Case of Albania

Albania’s progress of development has been hindered by the high rates of corruption. World Bank’s Control of Corruption measurement of 2008 placed Albania in the 25-50 percentile rank and Transparency International Corruption Perception Index (CPI) in the same year was 3,2 placing Albania 85th out of 180 countries ranked.  In comparison to its neighbors since 2002 Albania is doing the worst it terms of control of corruption. Albania was doing quite well in 1996 after which it experienced a huge decrease in control of corruption and even though over the years steady positive progress has been made, it hasn’t recovered to the same level yet.

Political Economy Analysis of Control of Corruption in Chile

The analysis of the World Governance Indicator Control of Corruption and Transparency International’s Corruption Perceptions Index (CPI) shows that Chile has always been a clean country, but one cannot tell how control of corruption developed. In order to understand control of corruption in Chile, one must look at the transition to democracy period, and also at Chile’s history, analyzing the institutions, power distribution, and the rules of the game since the first democratic period until nowadays in order to understand why control of corruption in Chile has always been higher than in other Latin American countries.

Beyond Perception: Has Romania’s Governance Improved since 2004?

Romania and Bulgaria encounter today problems in joining the visa-free Schengen area. The main one in the public eye is corruption. Both countries pledged to improve their rule of law when signing their accession treaties in 2005, yet little progress is perceived by observers or captured with governance measurements relying on perception, such as CPI and World Bank Governance indicators. This paper explores real policy, with fact-based indicators, to trace progress in the area – or lack of it – since 2004 to the present.