Background paper on South Korea

Korea is a developed OECD country and a young democracy with a relatively effective governance structure. It is often described as a very successful case of state-led economic development and praised for the successful transition from an authoritarian “developmental state” to a consolidated democracy since the 1980s. The Asian financial crisis that hit Korea in 1997 and the election of the first president coming from the opposition in the same year have been another critical juncture. Since then substantial institutional reforms have consolidated democracy, strengthened civil rights and improved the quality of governance. The country has a well-trained, meritocratic bureaucracy and a largely independent judiciary. Despite the substantial improvements in transparency, democratic accountability and prevention of corruption, many problems remain. Democratic behavior is still not deeply rooted in Korean society and is often undermined by entrenched hierarchical and authoritarian thinking. Korean society is divided into competing networks in which personal trust derives from regional origin and high school/university networks. These personal networks are grouped around powerful individuals and compete for influence, power, jobs and public resources. Democratic changes in governments have ensured that not a single group was able to completely monopolize power, but the competition of networks has prevented the emergence of a universalistic attitude oriented towards the common good. In sum, the distribution of resources is on the border between competitive particularism and ethical universalism with a general positive tendency since the beginning of democratization.

Background paper on Taiwan

Corruption has been on the top of Taiwan’s political and social agenda since at least the early 1980s. In many opinion surveys over the years, people have named it the most pressing political issue. Taiwan’s democratization in 1992 did not improve the situation – some observers even argue that corruption has worsened because of the need to finance election campaigns, to win votes and to gain influence in the now-powerful legislature.Since the first change in ruling parties in 2000, the situation has gradually improved. The Democratic Progressive Party (DPP) initiated tough anti-corruption regulations, strengthened anti-corruption organizations and cracked down hard on corruption and organized crime. The Kuomintang (KMT), which came to power again in 2008, continued this policy. Several high-profile corruption scandals in the last years mask the fact that Taiwan’s governance has improved markedly in the last decade. Not only have anti-corruption regulations been passed and are rigorously enforced, but also anti-corruption units in the government were strengthened. However, cultural factors such as the importance of personal relations in Chinese society and the habit of giving gifts not only to friends, but also to strategically important persons like doctors, teachers or business partners make it difficult to completely root out corruption.

Background paper on Latvia

Latvia’s political system has been functioning in a relatively inclusive and democratic way for about the last two decades. However, corruption has been a continuous concern. In the allocation of public resources such as public procurement contracts, public jobs and social services, fairness and impartiality are observed but not uniformly adhered to. Public agencies differ in their perceived degree of capture v. impartiality. The separation between the public and private sphere is the adopted principle but deviations from it are frequent (even if nowadays often hidden). Hence, within the distinction between the limited access order and open access order, Latvia fits as a borderline case.However, along several parameters, Latvia has experienced gradual long-term improvements. Its anti-corruption legislation is well developed. Administrative corruption remains a problem but on a considerably lesser scale than in the end of the 1990’s when solid surveys began. Corruption-related investigations and prosecutions of influential people in power positions have shown that no group is entirely above the law. Occasional expressions of the public outrage against corrupt politics are strong enough to serve as at least a modest restraint on the political elites and the grip of captors of political decision-making eased in 2010-2013.Among the factors which hold back Latvia from becoming a governance regime of the open access order, seem to be the rigid ethic division in the political competition, widespread sense of relative personal economic deprivation and high level of informal economy, the deficit of general interpersonal trust and related difficulties to overcome collective-action problems. Moreover surveys reveal mixed public attitudes towards corruption with both condemnation and tolerance common.

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.

Background paper on Georgia

Georgia had a terrible reputation for corruption, both in Soviet times and under the presidency of Eduard Shevardnadze (1992-2003). After the ‘Rose Revolution’ that led to Shevardnadze’s early resignation, many proclaimed that the government of new President Mikheil Saakashvili was a success story because of its apparent rapid progress in fighting corruption and promoting neo-liberal market reforms. His critics, however, saw only a façade of reform and a heavy hand in other areas, even before the war with Russia in 2008. Saakashvili’s second term (2008-13) was much more controversial – his supporters saw continued reform under difficult circumstances, his opponents only the consolidation of power.Under Saakashvili Georgia does indeed deserve credit for its innovative reforms that were highly successful in reducing ‘low-level’ corruption. At the top, however, many UNM officials saw themselves as exempt: ‘high-level’ corruption continued and even expanded as the economy grew. Georgian Dream has not restored the ancien régime, but has allowed some patronage and clientelism to creep back into the system. The new Georgia has gained a reputation for ‘selective prosecution’; but some of this is dealing with causes célèbres from the Saakashvili era, while some is clearly persecution of the UNM.

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 Chile

This report examines the successful performance of Chile to control corruption. It discusses the importance of structural and institutional factors that have shaped Chilean political development and its political economy and then it analyses the mechanisms implemented to achieve such a goal.

Background paper on Bulgaria

The Worldwide Governance Indicators show that Bulgaria has made significant progress in the area of “control of corruption” since 1996. This finding contrasts with the general opinion of the Bulgarian population who perceive Bulgarian institutions as corrupt, and contradicts the decision of the European Commission to continue monitoring Bulgaria’s progress in fighting corruption and organized crime. Hence, there is a need for careful consideration and analysis to understand how much progress Bulgaria has really made in the fight against corruption. Can Bulgaria be considered an anti-corruption success story?

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.

Becoming Denmark: Historical Designs of Corruption Control

Why do some societies manage to control corruption so it manifests itself only occasionally, as an exception, while other societies do not and remain systemically corrupt? And is the superior performance of this first group of countries a result of what they do or of who they are? Most current anticorruption strategies presume the former, which is why institutions from developed and well-governed countries are currently being copied all around the world. At least on paper, there are few states left that are missing a constitutional court, some form of checks and balances, or an ombudsman (the number of countries with these elements grew from 47 in 1990, 100 in 2003 and 135 by 2008). Skeptics, on the other hand, endorse the latter view, believing in the cultural determinism of corruption and good governance. More recently, following the failure of the first generation of anticorruption reforms, a middle-ground position has begun to emerge: that the most relevant lessons lie not in what developed countries are currently doing to control corruption but rather in what they have done in thepast, when their societies more strongly resembled the conditions in today’s developing world (Andrews 2008). However, as this subject area is largely unknown to governance scholars and practitioners alike, it is difficult even to estimate the potential value of such historical lessons. I plan to address this gap by asking not how corruption is eradicated but rather how societies have built—over time—systems to protect their common resources from being spoiled by individuals or groups.

The Legacies of 1989: The Transformative Power of Europe Revisited

Why has the EU succeeded in promoting democracy in the new member states but failed in promoting good governance?  This essay seeks to answer this question first by distinguishing governance from political regimes, and second by exploring to what extent national governance—which is defined as the set of formal and informal institutions that determine who gets what in a given country—is susceptible to being improved by external pressure or intervention. It concludes that improving governance remains a challenge even for the democratic character of the European project.

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.

Corruption in universities: a blueprint for reform

What is to be done when an entire education system is corrupted, when universities sell cheap diplomas and the best academics move abroad? Corruption in the academy can be challenged by a ‘clean universities’ ranking and the power of press coverage.

Global comparative trend analysis report

Can governance be changed by human agency? The answer to this central policy question has been taken for granted in the last twenty years as good governance promotion began to feature as a top priority of every international donor organization. Despite this fact, the answer is not as simple. In this introductory study the answer is divided in two parts. The first question pertains to whether governance—as defined in the framework of this project as a set of institutions determining who gets what in a given society—evolves at all, other than incrementally, in the absence of radical intervening factors (e.g., war, military occupation or natural disaster). The second part questions, where such natural evolution can be observed with some certainty, is it intentional human agency which brings the change about. The objective of this trend analysis report is to answer the first part of the question and identify cases of evolution.

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.

The Long Transition to Good Governance: the Case of Estonia. Looking at the changes in the governance regime and anti-corruption policy

This paper deals with the post-communist positive outlier Estonia, which made according to international comparisons perhaps the most spectacular progress in the world, from a totalitarian regime to a quality democracy in less than twenty years. The country has seen improvement in all four dimensions of control of corruption described in the equilibrium model of Alina Mungiu-Pippidi (2011) since the restoration of its independence in 1991. The changes in the different dimensions happened almost simultaneously. During the first government of Mart Laar (1992-1995), policies that reduced material resources and strengthened legal constraints were implemented. Estonia pioneered important liberal reforms, for instance the adoption of a flat tax which then became very trendy in Eastern Europe and a very advanced e-government inspired from the neighbouring Finland. It also had the most radical policy towards Soviet time judiciary, replacing most of it and restarting practically all over with new magistrates. Normative constraints are also high, with a public opinion intolerant of particularism, an active civil society and a free press. The paper tries to explain why Estonian elites succeeded in promoting good governance and anti-corruption measures more than most other Central and Eastern European countries. In addition, author is looking for integrative understanding how to improve the control of political and administrative corruption mechanisms via the better regulation measures (e.g. impact assessment, participation, simplification) and support of political motivation.

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.

Changing the Rule of the Game: a Diagnosis of Corruption in Brazil

In Brazil, corruption has always been part of political discussions, but changes in government hardly ever brought changes in the political and social structures. The great economic development of recent years might end up covering some of the problems. Therefore, it is fundamental to investigate whether in Brazil corruption is the norm or the exception, as well as to understand the main corruption mechanisms in order to design proper policies to tackle its most harmful forms so that the country can finally evolve towards good governance and impartial government.

Control of Corruption: the Road to Effective Improvement. Lessons from Six Progress Cases

In the last two decades, the emergence of an international good governance agenda has fostered the implementation of anti-corruption efforts in several countries. Nevertheless, recent assessments of those efforts reveal that the vast majority of initiatives have not produced concrete positive results. Only a few countries have made considerable progress in reducing corruption, and there is still limited knowledge about what has determined their positive experiences. This paper attempts to contribute to this discussion by engaging in a comparative analysis of six countries that have improved in terms of control of corruption. These countries are: Uruguay, Estonia, Botswana, Taiwan, South Korea and Ghana. The framework for analysis is based on a model of corruption as a function of power discretion, material resources and legal and normative constraints (Mungiu-Pippidi, 2010). Additionally, particular attention is paid to the role of political agents as drivers of change, with a focus on political leaders, civil society, media and enforcement institutions.

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.

Aid Selectivity and Anti-Corruption Policy: a Case Study of the Millenium Challenge Corporation

This paper argues that corruption control is the most fundamental component of the good governance agenda, since it subverts all the other values of good governance. It is both cause and effect of inefficient and unaccountable institutions. In developing countries, were resources are scarcer and need to be used in the most effective manner, corruption is especially harmful. In an effort to clarify how this move to a more selective, performance based approach can have an influence in the control of corruption of developing countries and therefore serve as model for other donors to follow, this paper will first discuss the concepts of good governance, development, corruption and review its empirical links to aid effectiveness. It will also show the benefits and limitations of measuring governance and corruption and argue for the development of more broad assessments methods.

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.