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Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
Typologies of corruption in central eastern europe
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Typologies of corruption in central eastern europe

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  • 1. Corruption takes many forms, and all of them distort the workings of a political system… Wirtschaftuniversitaet - Wien Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 2. Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 3.  “the currency of the corrupt act, be it a bribe, profiteering, nepotism, or something else, is less important than how it distorts the workings of the political system” Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 4. Low Level Self Serving “State Capture” administrative asset stripping by corrupt corruption by officials networks Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 5. • Bribes to break rules and regulation Bribery to Bend Rules • The whole political regime can change Over-regulation, • “corruption thrives on disorganization” Obfuscation and • More rules, regulations and burdens to Disorganization induce the public to offer more Misuse of Licensing • Ukraine 1999 –26 agencies but no and Inspection Powers published rules! “payments to police and the health services account for about half of all bribe expenses.”
  • 6. Diverting Public Funds • Hidden „second‟ budgets • Exploitative use of natural resources; Mismanagement and • Not useful leasing of pubic spaces; Profiteering from • Quasi privatization of state owned Public Assets enterprises • Privatization‟s officials concentrated on their own enrichment; Profiteering from • Decisions without open market competition, Privatization public scrutiny or accountability procedures “ “Russian generals are believed to have embezzled $65 Mll from sales of military property intended to pay for military housing”
  • 7. • The prices the state pays in procurement Procurement Schemes are typically too high • Shady hiring practices; Nepotism, • Corruption occurs by commission as well Clientelism and as omission, „old comrades network‟; “selling” of Positions • Threat of firing Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 8. • Corrupt or criminal networks penetrate De facto Takeover of executive institutions at critical points. Institutions • Especially difficult to prove and fight • Democracies cannot function properly if Forming Collusive collusive power blocs capture the political Networks market • Nomenklatura elites • Illicit financing of parties electoral slush funds linked to power oligarchies Undermining Elections • Pay for hidden political advertising in supposedly objective media Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 9. • Laws purchased by business or criminal interests that illegally pay legislators to pass Misuse of Legislative specific bills. Power • Confusing and contradictory legislation promotes corruption. • Executives often bribe prosecutors and Corruption of Judicial judges Justice • Judicial complicity – lack of evidence • Misuse of auditing, investigative and Misuse Oversight oversight powers to hide and promote corruption Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 10. • Intimidate citizens and political rivals Kompromat • Concrete legacy of soviet system • Mutual blackmail • The most crucial player in promoting or hindering efforts to stamp out corruption • News stories are sometimes skewed Media Corruption • Innuendos and false accusations are spread against political or economic rivals Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 11.  Corruption is the chief obstacle to democratic and economic progress in the post-communist region.  The misuse of public power for private gain has political consequences that need to be spelled out and assessed.  Officials charged with securing the public good focus instead on securing their own private good  The people at large pay a cost Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 12. Corruption has 3 dimensions that affect the quality of its politics: 3. And its consequences 2. Its for the polity institutional aspects 1. Currency of the corrupt act Elizabeth Pyle Doing business in C.E.E. Henry Sichel
  • 13.  Corruption undermines the principles on which democratic regimes are built, such as the rule of law, free and fair electoral competition, and representation and responsive government. If corruption becomes so persuasive that it seriously undermines these principles, then the entire system of government has changed and a new vocabulary will be needed to explain the outcome Elizabeth Pyle Doing business in C.E.E. Henry Sichel

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