Mode of International Investment and Endogenous Risk of Expropriation

This paper analyzes the relationship between the mode of international investment and institutional quality. Foreign investors from a capital-rich North can either purchase productive assets in a capital-poor South and transfer their capital within integrated multinational firms or they can form joint ventures with local asset owners. The South is ruled by an autocratic elite […]

Financial Liberalization and Institutional Development

This study empirically analyzes the effects of de jure financial openness on institutional quality as captured by indicators on investment risk, corruption level, impartiality of judiciary system, and the effectiveness of bureaucracy. We show that a higher degree of financial openness improves institutional quality mainly by reducing investment risks. We also study the effect of […]

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.

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, […]

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 […]

Controlling Corruption Through Collective Action

Control of corruption in a society is an equilibrium between resources and costs which either empowers or constraints elites predatory behavior. While most research and practice focuses on legal constraints, this paper investigates normative constraints, deemed to be more important, especially civil society and the press. Fresh evidence—both historical and statistical—is found to support Tocqueville’s […]

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 […]

Financial Integration in Autocracies: Greasing the Wheel or More to Steal

This paper analyzes the influence of financial integration on institutional quality. We construct a dynamic political-economic model of an autocracy in which a ruling elite uses its political power to expropriate the general population. Although financial integration reduces capital costs for entrepreneurs and thereby raises gross incomes in the private sector, the elite may counteract […]

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 […]

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 […]

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, […]

Political Economy Analysis of Corruption in Ghana

Ghana on one hand, since its return to democratic rule in 1993, has experienced a continuous growth in consolidating its democracy, leading it to be one of the most referred to success stories of democracy in Africa. On the other hand, corruption continues to be a problem in spite of the several proclaimed measures by […]

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 […]

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 […]

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 […]

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 […]

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 […]

The Republic of Indonesia: Between a Gecko and a Crocodile

Although corruption continues to be a severe problem in Indonesia, indicators show that Indonesia has greatly improved at curbing corruption over the past decade – more so, in fact, than any other country in all of Asia. Clearly, something remarkable is going on in the country. This paper will focus on the evolution of corruption […]

Transitions to Good Governance: the Case of Tanzania

This report gives a snapshot of the state of corruption in Tanzania between the years 1998 and 2008. Strong presidents, who have endorsed the fight against corruption, as one of their main presidential goals have been the main drivers of change in Tanzania’s fight against corruption. However, there are many shortcomings that are eminent in […]