Crony Capitalism in the European Union: Subjective or Objective?

Long before the Panama leaks, nearly three quarters of Europeans (73%) had already endorsed the belief that bribery and connections are the easiest way to obtain public services in their respective countries. Furthermore, pan-European surveys revealed that nearly 7 out of 10 Europeans agreed that corruption was part of the business culture in their country […]

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 […]

Corrupt Contracting: Partisan Favouritism in Public Procurement. Hungary and the United Kingdom compared.

For politicians seeking to use a clientelist approach to achieve political and private gain, i.e., to prolong their hold on power and maximize personal profit, control of government contracting is a key tool. We theorise that politicians wishing to exploit government contracting for such ends will seek to increase their influence over three stages of […]

Measuring Control of Corruption by a New Index of Public Integrity

While the last twenty years saw the invention of corruption rankings, allowing comparison over countries and the shaming of corrupt governments, such measurements are largely based on perceptions of experts, lacking both specificity and transparency. New research, based on a comprehensive theory of governance defined as the set of formal and informal institutions determining who […]

EU Aid and the Quality of Governance

Using a panel dataset on 103 developing countries, this paper empirically analyzes the impact of the European aid flows on quality of governance in aid recipient countries. The analysis employs aggregated Official Development Data as well as disaggregated project level data. The results show that while bilateral aid from the largest European donors does not show any impact, multilateral […]

Uncovering High-Level Corruption: Cross-National Corruption Proxies Using Government Contracting Data

Measuring high-level corruption and government favouritism has been the object of extensive scholarly and policy interest with relatively little progress in the last decade. In order to address the lack of reliable indicators, this article develops two objective proxy measures of high-level corruption in public procurement: single bidding in competitive markets and a composite score […]

Multi-Nationals and Corruption Systems: The Case of Siemens

Scholars tend to agree and evidence has shown that domestic businesses adapt to the local type of corruption, but little is known whether large multinational corporations also adapt to the local forms of corruption. Institutionalist theories of corruption and of international political economy would suggest that this would be the case, but the hypothesis has […]

Anti-Corruption Revolutions: When Civil Society Steps In

This working paper explores the question of whether an empowered civil society with access to public information, can make a difference in the fight against corruption, using India and the recent rise of an anti-corruption party as a case study. Through a mixed methodology that combines quantitative and qualitative research tools, the authors find evidence […]

Natural Resource Revenues, Corruption and Expropriation

This paper develops a formal model that looks at the mutually endogenous determination of foreign direct investments in natural resource-rich countries, the decision of host governments to expropriate these investments, and the level of corruption. Higher resource production makes expropriation more attractive from the perspective of national governments. A low expropriation risk is in turn an important determinant of international investments […]

The Struggle for Effective Change: An Assessment of the APRM’s Achievements

In July 2002 the New Economic Partnership for Africa’s Development (NEPAD) was established. This collective action taken by African Heads of State and Governments demonstrated the willingness to strengthen governance and achieve sustainable economic and political development. The African Peer Review Mechanism (APRM) was set up to monitor the commitment to the NEPAD and thereby […]

Anatomy of grand corruption: A composite corruption risk index based on objective data

Although both the academic and policy communities have attached great importance to measuring corruption, most of the currently available measures are biased and too broad totest theory or guide policy. This article proposes a new composite indicator of grand corruption based on a wide range of elementary indicators. These indicators are derivedfrom a rich qualitative […]

Corruption manual for beginners: “Corruption techniques” in public procurement with examples from Hungary

This paper develops 30 novel quantitative indicators of grand corruption that operationalize 20 distinct techniques of corruption in the context of public procurement. Each indicator rests on a thorough qualitative understanding of rent extraction from public contracts by corrupt networks as evidenced by academic literature, interviews and media content analysis. Feasibility and usefulness of the […]

Bulgarian Anti-Corruption Reforms: A Lost Decade?

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 organised […]

Tax Simplification and Informal Economy in developing and transitioning countries

Informal economy is present in all countries; however it is in low and middle income countries that it has its deepest roots with some measurements estimating it to average at above 40% of national GDP. This represents a large part of the economy and poses serious problems for economic development and the relationship between state […]

The State of State Capacity: a review of concepts, evidence and measures

What is state capacity and how does it affect development? The concept of state capacity acquired centrality during the late seventies and eighties, sponsored by a rather compact set of scholarly works. It later permeated through several disciplines and has now earned a place within the many governance dimensions affecting economic performance. The present article […]

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 […]

Are EU funds a corruption risk? The impact of EU funds on grand corruption in Central and Eastern Europe

Fazekas et al explore the impact of EU structural funds on institutionalised grand corruption in three countries where corruption is systemic – Czech Republic, Hungary, and Slovakia – between 2009-2012. They examine whether EU funds have contributed to weakening institutional quality in terms of wasteful public spending and increased ‘legal’ corruption conducted through public procurement. […]

The Transparency Paradox: Why do Corrupt Countries Join EITI?

Rules that require actors to make their finances transparent have become a key part of the anti-corruption toolkit, under the assumption that sunlight is the best disinfectant.  This logic underpinned the creation, in 2002, of the Extractive Industries Transparency Initiative (EITI), an international club aimed at reducing corruption in oil, gas and mining.  The initiative […]

Bottom of the Heap. The Case of Romania

The suspension of EU payments in four operational programmes in 2012 showed how problematic Romania’s correct and effective management of EU funds is. Such funds aim primarily at decreasing the socio-economic disparities among EU members and support the economic convergence with their Western counterparts of less developed new EU members. Consequently, a poor absorption rate […]

Hidden Depths. The Case of Hungary

This report investigates corruption risk of EU funds spending in Hungary within the framework of the Public Procurement Law. Its finding is that in spite of what is a tight regulatory framework EU funds are likely to fuel the abuse of public spending. Even though public procurement using EU funds faces considerably more stringent regulation, […]

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 […]

FOIA as an Anti-Corruption Tool

This paper tests, explores and exemplifies the role of freedom of information legislation as an anti-corruption tool. In the first part, its tests freedom of information separately and in comparison with other more popular anti-corruption tools, such as an anti-corruption agency. In the second part, it proposes a more elaborated model explaining control of corruption […]

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 […]

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 […]

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 […]