Where Is the Behavioral Insights Revolution in Anticorruption?

Behavioral economics—the application of insights from behavioral psychology to economic analysis and regulatory policy-making—is all the rage. In addition to the contributions of this synthesis to academic economics, research in behavioral economics has suggested the possibility of innovative, simple, low-cost policy interventions that can shift behavior in dramatic and productive ways, without as much reliance on the heavy hand of regulators. These so-called “nudges” (named after Richard Thaler’s and Cass Sunstein’s book Nudge) include, for example, things like automatic enrollment in retirement plans, which appears to increase the amount of people saving for their retirement more than tax incentives do. The possibility of using nudges or other approaches inspired by behavioral economics has captured the imagination of politicians, international organizations, and others, and there are now approximately 200 so-called “nudge units” in governments around the world looking for ways to employ behavioral insights to solve public policy problems

This enthusiasm has spread to the field of anticorruption. (See here, here, and on this blog here and here). But, while there have been a handful of anecdotal reports of successful nudge-like interventions in this area (e.g. here), there has not yet been much elaboration of what sorts of concrete anticorruption innovations follow from a behavioral perspective, nor of the evidence base supporting these sorts of interventions. Indeed, there seems to be surprisingly little data about successful applications of behavioral insights in the fields of integrity and anticorruption. That’s why I was so excited when last year the Organization for Economic Co-Operation and Development (OECD) published Behavioural Insights for Public Integrity: Harnessing the Human Factor to Counter Corruption, a report that, according to the OECD, is the “first comprehensive review of different strands of behavioral sciences to identify practical lessons for integrity policies.”

Alas, rather than providing systematic evidence on how applying behavioral insights can make anticorruption efforts more effective and using that evidence to recommend new integrity tools, the OECD report largely rehashes the last couple of decades of behavioral economics more generally, and makes it seem—at least to me—that, at least so far, behavioral science does not really suggest anything revolutionary for integrity and anticorruption, and there is little or no data-backed guidance on how to apply nudging to solve problems of integrity. Continue reading

Guest Post: Behavioral Economics, Punishment, and Faith in the Fight Against Corruption

The following guest post, by Roberto de Michele, Principal Specialist in the Institutional Capacity of the State Division at the Inter-American Development Bank (IDB), is a translated and slightly modified version of a post that Mr. de Michele originally published in Spanish on the IDB’s governance blog on August 29, 2016:

Last August, Hugo Alconada Mon, one of Argentina’s most prestigious investigative journalists, published an article (in Spanish) describing how road construction firms in Argentina created a cartel to fix public work contracts. Members of the cartel would meet in the board room of the sector chamber to conduct their business. The room has a statue of Our Lady of Luján, patroness of Argentina. Before commencing negotiations to fix contracts, assign “winners,” and distribute earnings, members of the cartel would turn around the image of Our Lady of Luján to face the wall, with her back to those gathered there. It was, as one of the sources candidly put it, “so that she doesn’t see what we were about to do.” This remark got me thinking about two possible explanations on why we break the law, cheat, and lie both to the government and to others. Continue reading