While petty, grand, and systemic corruption, described above, are largely found in poor
countries with weak institutions, a newer literature has turned to money politics in
wealthy democracies and extreme global inequalities. Simon Weschle at Syracuse
University examines the prevalence of campaign finance and its consequences for
democracy.[39] Kristin Surak at the London School of Economics explores the
controversial practice of millionaires buying "golden passports" with no intention of
actually migrating. In her words, "a full-blown citizenship industry that thrives on global
inequalities" has arisen."[40]
State-Business Collusion
[edit]
While not necessarily involving bribery, recent research documents the emergence of "a
particular kind of large, non-state business group" that is akin to a mafia system in
China.[41] In this situation, the boundary between public and private actors blurs.
Causes
[edit]
Much of existing literature focuses on explicit corrupt actions like bribery and
embezzlement, endemic in poor countries (see below). For "money in politics," the
causes are very different and largely ignored in conventional literature. For example, the
UK is a developed economy with a robust democracy, and yet London is a hub for
money laundering.[42] In a critique of the failures and politics leading up to the US
financial crisis, a Stanford financial economist noted, "In the real world, it turned out,
important economic outcomes are often the consequences of political forces. During
2010, people within regulatory bodies told me privately that false and misleading claims
were affecting key policy decisions... I saw confusion, willful blindness, political forces,
various and sometimes subtle forms of corruption, and moral disengagement, first
hand."[43]
Per R. Klitgaard[44] corruption will occur if the corrupt gain is greater than the penalty
multiplied by the likelihood of being caught and prosecuted.
Since a high degree of monopoly and discretion accompanied by a low degree of
transparency does not automatically lead to corruption, a fourth variable of "morality" or
"integrity" has been introduced by others. The moral dimension has an intrinsic
component and r
corruption occurring at the highest levels of government in a way that requires
significant subversion of the political, legal and economic systems. Such corruption is
commonly found in countries with authoritarian or dictatorial governments but also in
those without adequate policing of corruption.[29]
The government system in many coun
nother.[30]
Systemic corruption
[edit]
Systemic corruption (or endemic corruption)[31] is corruption which is primarily due to
the weaknesses of an organization or process. It can be contrasted with individual
officials or agents who act corruptly within the system.
Factors which encourage systemic corruption include conflicting
incentives, discretionary powers; monopolistic powers; lack of transparency; low pay;
and a culture of impunity.[32] Specific acts of corruption include "bribery, extortion, and
embezzlement" in a system where "corruption becomes the rule rather than the
exception."[33] Scholars distinguish between centralized and decentralized systemic
corruption, depending on which level of state or government corruption takes place; in
countries such as the post-Soviet states both types occur.[34] Some scholars argue that
there is a negative duty[clarification needed] of western governments to protect against systematic
corruption of underdeveloped governments.[35][36]
Corruption has been a major issue in China, where society depends heavily on personal
relationships. By the late 20th century that combined with the new lust for wealth,
produced escalating corruption. Historian Keith Schoppa says that bribery was only one
of the tools of Chinese corruption, which also included, "embezzlement, nepotism,
smuggling, extortion, cronyism, kickbacks, deception, fraud, squandering of public
money, illegal business transactions, stock manipulation and real estate fraud." Given
the repeated anti-corruption campaigns it was a prudent precaution to move as much of
the fraudulent money as possible overseas.[37]