Corruption and Anti-Corruption

Corruption and Anti-Corruption

Peter Larmour
Nick Wolanin
Copyright Date: 2013
Published by: ANU Press
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  • Book Info
    Corruption and Anti-Corruption
    Book Description:

    There is new international attention being given to the old problem of corruption. It has been taken up by international organisations, and driven by economic analysis. It is impatient of cultural justifications, and suspicious of state action. It is concerned with corruption prevention as much as detection, investigation and prosecution. Corruption and Anti-Corruption deals with the international dimensions of corruption, including campaigns to recover the assets of former dictators, and the links between corruption, transnational and economic crime. It deals with corruption as an issue in political theory, and shows how it can be addressed in campaigns for human rights. It also presents case studies of reform efforts in Philippines, India and Thailand. The book explains the doctrines of a well-established domestic anticorruption agency. It is based on research to develop a curriculum for a unique international training course on ‘Corruption and Anti-Corruption’, designed and taught by academics at The Australian National University, the Australian Institute of Criminology and public servants in the New South Wales Independent Commission Against Corruption. Versions have been taught in Canberra, and several countries in South East Asia.

    eISBN: 978-1-922144-77-5
    Subjects: Political Science

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-x)
  3. Introduction
    (pp. xi-xxiv)
    Peter Larmour and Nick Wolanin

    New attention to the old problem of corruption has several characteristics. First it is international. Previously corruption was mainly the concern of domestic agencies, like the police or auditors. Now it appears on the agenda of international organisations, like the World Bank or the OECD. The internationalisation of controlling corruption has been led by a non-government organisation, Transparency International (TI), which has campaigned to outlaw the bribery of foreign officials. Transparency International devised a controversial ‘Corruption Perceptions Index’, which ranked countries according to how corrupt they were perceived to be. It followed this up with a Bribe Payers Index, which...

  4. 1 Good government and corruption
    (pp. 1-10)
    Barry Hindess

    Corruption today is commonly understood in economic terms, in relation both to its content (money in exchange for favours) and to its effects (on economic growth, development, and so forth). In other historical contexts, corruption has been understood more generally and I will raise the question of why this narrowly economic perspective has come to be so influential. Other chapters in this collection address the issues of how to identify corruption and how to deal with it when you find it. The aim of this chapter, in contrast, is to stand back from such concerns and to focus instead on...

  5. 2 Research: A tool for building corruption resistance
    (pp. 11-29)
    Angela Gorta

    With the increasing attention that is being given to corruption internationally, calls to ‘combat the cancer of corruption’ or to ‘stop the scourge of corruption’ have become more frequent. In order to begin to control corruption two basic questions need to be addressed

    where does one start in order to attack corruption?

    how does one start to attack corruption?

    There are many possible answers to these questions, depending on one‘s understanding of the causes and manifestations of corruption, resources available and the legislative framework within which one is operating.

    The ‘hidden’ nature of corruption means that much corruption remains undetected....

  6. 3 An international human rights approach to corruption
    (pp. 30-61)
    Zoe Pearson

    Corruption is a phenomenon that appears to be increasing throughout the world. It is a problem that affects both developed and developing countries to varying degrees, depending on the extent and type of corruption. There is a vast literature on the subject of corruption. Much of it approaches the problem from an economic or a political viewpoint, and the resulting analyses of the causes, effects and solutions to corruption reflect this approach. Corruption is viewed as having a deleterious effect on the economic growth and development of a country. This conclusion is generally accepted despite the limited empirical data. Corruption...

  7. 4 Regulating virtue: formulating, engendering and enforcing corporate ethical codes
    (pp. 62-81)
    Andrew Brien

    Amongst the most popular instruments used when attempting to inject ethics into organisational life is the code of ethics (or code of practice—I use the expressions synonymously). In fact, such codes are often the first formal structure to be established when the attempt is made to raise the ethical profile of an organisation. The popularity of codes stems from the fact that they are very adaptable; they are used in all types of regulatory environments, from external regulatory regimes to self-regulatory and enforced self-regulatory regimes. As well, all sorts of organisations—government departments and agencies, universities, along with many...

  8. 5 Building organisational integrity
    (pp. 82-96)
    Catherine Boardman and Vicki Klum

    An organisation’s leaders are the key to its operational effectiveness. They are its principal motivators. They provide focus, direction and inspiration. They set its ethical tone.

    Every public sector agency, from local councils to government trading enterprises, is established for a specific purpose. That purpose might be to provide municipal services to the local community or health services to regional areas, coordinate education services for the state, or ensure an adequate water supply to the capital. Whatever an organisation’s purpose, it has a public duty to optimise the value of its services to the community.

    Corruption and other unethical behaviour...

  9. 6 Controlling corruption by heads of government and political élites
    (pp. 97-118)
    David A. Chaikin

    The fraudulent enrichment and corruption of heads of states and senior government officials is a problem which has only recently begun to interest international lawyers. The organised and systematic plundering of national treasuries or spoliation of assets by political and military élites has ravaged many developing countries, exacerbating poverty and undermining economic and social development.

    When a greedy authoritarian leader or despot is in power, there are few (if any) opportunities for taking legal action to prevent or interdict stolen monies or the proceeds of corruption. If, however, the authoritarian leader is deposed, the new government may seek the assistance...

  10. 7 The microeconomics of corruption: the classical approach
    (pp. 119-130)
    Flavio M. Menezes

    This chapter reviews the classical approach to the microeconomics of corruption. Based on the pioneer work of Gary Becker (1968) and George Stigler (1970) on the economics of crime, Becker and Stigler (1974), Rose-Ackerman (1975, 1978) and Banfield (1975), among others, have applied standard economic tools to analyse corruption.

    In particular, this chapter focuses on a principal-agent model of corruption: the relationship between the principal—the top level of government—and the agent—an official, susceptible to taking bribes from private firms interested in supplying the government with a particular good or service. This chapter provides a simplified version of...

  11. 8 Transnational crime: corruption, crony capitalism and nepotism in the twenty-first century
    (pp. 131-145)
    John McFarlane

    The 1990s saw some of the most dramatic developments in modern history. The collapse of the former Soviet Union and consequent conclusion of the Cold War has changed the entire security architecture developed over the last fifty years. Other substantial changes in the political map in those fifty years include the emergence of new political and economic alliances, such as the European Union (EU) and the Association of South East Asian Nations (ASEAN); the establishment of the World Trade Organization (WTO); the proposal to establish an International Criminal Court, and the return of Hong Kong to Chinese sovereignty. Many nations...

  12. 9 The prevention and control of economic crime
    (pp. 146-158)
    Peter Grabosky

    Economic crime, by which I refer generally to fraud in its various manifestations, is among the most costly of all criminal activities. Although it would be interesting to determine its cost with some precision, the total impact is unquantifiable. There are a number of reasons why attempts to estimate the costs of economic crime are bound to be futile. First, the most skilfully perpetrated offences are not even detected by victims. Even when an offence is detected, and the victim knows that he or she has sustained a loss, they may be reluctant to report. In the case of an...

  13. 10 Use of information technology to address institutional failure
    (pp. 159-176)
    Asim Barman

    This chapter describes the experience of deploying information technology (IT) in Calcutta Municipal Corporation to arrest corruption in the municipal administration of Calcutta, a bustling metropolis in India. In the face of apparently insurmountable problems, IT was used as a means of institutional strengthening in the public sector organisation. Introduction of IT in Calcutta Municipal Corporation has had many benefits, including fast and accurate flow of information, increased revenue generation, decentralised planning, effective operational control, a paperless environment, and strengthening of both intra-organisational and inter-organisational communication systems.

    The chapter specifically focuses on how the introduction of IT checked corruption, and...

  14. 11 Depoliticising key institutions for combatting corruption: the new Thai constitution
    (pp. 177-203)
    Borwornsak Uwanno

    Corruption has been rampant in Thailand for many decades. It has been one of the pretexts used by the Thai military to legitimise coups against civilian governments. Thailand’s most recent coup, enacted by the National Peacekeeping Council (NPKC) in 1991, was justified by coup leaders on the grounds that members of Chatichai’s government were greatly corrupted. A committee for asset inspection was formed to investigate the assets of ‘unusually wealthy’ ministers. The case ended with the Supreme Court annulling the NPKC’s Order No. 26 on account of its unconstitutionality.

    Following that, the movement for political reform became widespread among opinion...

  15. 12 Combatting corruption in the Philippine Customs Service
    (pp. 204-220)
    Guillermo Parayno Jr.

    In the 1970s and 1980s, the Philippine Customs Service undertook anticorruption campaigns to combat the perceived defects in the inherent character of the Customs personnel. They used a combination of negative reinforcement, value formation, and attitudinal change which have all been found to be ineffective. The programs entailed the establishment of specialised government watchdog, investigative and prosecution agencies against corruption. Generally, however, all ended up being the same tools of the corrupt practitioners against the government officials whose mission it was to combat this social malady.

    On the other hand, recent programs, implemented from 1992–98, had as their focus...

  16. 13 Corruption as a social process: from dyads to networks
    (pp. 221-237)
    John Warburton

    The problem of corruption can be stated in relatively simple terms. What is it? How does it function? If we could answer these questions we should be able to discover ways of combating what is now perceived as the scourge of the modern world. However, every complex problem has a simple plausible answer, which is invariably wrong. The problem of corruption may be able to be framed in uncomplicated terms but this is where the simplicity ends.

    In general terms, corruption is an artefact of social and political organisation and, as such, is a phenomenon of infinite complexity. I have...

  17. References
    (pp. 238-254)
  18. Index
    (pp. 255-262)