2.what is corruption
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Transcript of 2.what is corruption
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EuropeAid
What is Corruption?
Dr Heather Marquette, University of Birmingham
European Commission Training Seminar: EC Support to Governance
in Partner Countries (Africa focus)
4-8 July 2011
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EuropeAid
o Introduction
o Definitions
o Forms and typologies
o Causes and consequences
o Challenges in fighting corruption
What is corruption?
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EuropeAidWhy worry about corruption?
Cost of Corruption:€ Decreases GDP by 1%/yr (UN)
€ Bribery alone = $1 trillion/yr
(World Bank)
€ 3-5% world GDP
(World Bank and IMF)
Corruption: o wastes development resourceso major impediment to development (MDGs) o in the ‘Age of Austerity’ less tolerated by donors and their
publics?
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EuropeAidDefinitions of corruption
o Defining corruption is complex because of ‘absence of a fixed disciplinary allegiance’ (Williams, 1999)
o Definitions vary according to approaches, aims and needs of analysts/policymakers
o How corruption is defined determines how it is viewed, the policy approaches adopted and the legitimacy of policies
o Recognizing this complexity, the EC has acknowledged several approaches to defining corruption
• Legal• Socio-economic• Anthropological
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EuropeAidLegal approachesto defining corruption
o In very basic terms, if it is illegal, it is corruption; if it is legal, it is not
o International conventions provide harmonised definitions of corruption-related offences facilitating judicial cooperation between partner countries
o National legal definitions for corruption-related offences vary, due to different legal traditions and social norms
o Critiques?• The powerful set the law• Ignores offenses that may be legal but which society defines as corrupt• Facilitates a ‘tick box’ approach to anti-corruption; e.g., is there a law
against X? Tick! De jure may not mean de facto• Cross-national comparisons difficult
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EuropeAidSocio-economic approaches to defining corruption• Defines corruption as the result of individual rational decisions: e.g.
o ‘The abuse of public office for private gains’ (World Bank)
o ‘The misuse of entrusted power for private gain’ (TI)
• Has been famously expressed as the formula C = M+D-A (Klitgaard 1988)
• Addresses the motivation for corrupt acts (e.g. private gain) and the nature of power (formal/informal or public/private)
• Critiques?o Focusing on individual’s motivation divorces him/her from their communityo Assumes a shared understanding of ‘public office’o Over-simplifies an inherently complex phenomenono May explain corruption but very poor at explaining integrity
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EuropeAidAnthropological approaches to defining corruption• Concerned with the motivations, organisation of power, as well as contexts
where corrupt acts take place
• Considers corruption as both individual and collective phenomena
• The anthropological approach takes into account: o Norms, rules, customs, and perception of corruptiono The importance of morality and trust issues o Forms and organisation of powers
• Critiques?o Too ‘academic’; difficult to translate into policyo Ignores international norms; too context-specifico May be used to justify an ‘anything goes’ approach
(Nb: Will be covered in more depth in the next session. Probably the least understood/known of all approaches, with a great deal of potential to help improve anti-corruption policy-making…despite critiques!)
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EuropeAidCorruption: An EU Definition
• Corruption : ‘the abuse of power for private gain’ (EU, 2003)
• Broadest attempt to define the phenomenon, encompassing both the public and private sector
• The EU acknowledges corruption’s complexity and the inadequacy of a single definition
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EuropeAidTypologies of corruption
• Bureaucratic versus Political
• Petty v Grand
• Need v Greed
• Active v Passive
• Incidental v Systemic
• Quiet Corruption
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EuropeAidForms of Corruption
(UNODC)
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EuropeAidCauses of Corruption
• Low levels of economic development and high levels of poverty
• Unintended consequences of economic liberalisation
• Unintended consequences of Foreign Direct Investment
• Weak institutions
• Lack of accountability and
transparency
• Inequality
• Democracy (or a lack of
democracy!)
• Offshore banking, tax havens
and money laundering
• International organised crime
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EuropeAidConsequences of Corruption
• Hampers economic growth and development
• Jeopardizes poverty reduction
• Increases cost of services, especially for the poor
• Weakens democracy
• Contributes to conflict
• Reduces the effectiveness of aid
• Weakens public support for aid
• Reduces trust in government and across society
…..Its not the war, it’s the corruption… (Sri Lanka)
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EuropeAidChallenges in fighting corruption• Universal assumptions have hampered anti-corruption efforts
• Corruption is a contextual phenomenon
• The ‘primacy’ of country context makes a clear case for better/more political economy analysis (PEA)
• International drivers of corruption are poorly understood or even acknowledged (language tends to be very ‘national’)
• Assessing and monitoring corruption is difficult, especially as the definitions used are often unclear or assumed
• Fighting corruption is inherently destabilising and even dangerous!o Definitions that bring in issues to do with power and politics make this more
clear