Fighting Police Corruption in Nigeria: An Agenda for Comprehensive Reform

Nigeria has a serious problem with police corruption, at all levels. At the top, senior police officials embezzle staggering sums of public funds. To take just one example, in 2012, the former Inspector General of Police, Sunday Ehindero, faced trial for embezzling 16 million Naira (approximately US$44,422). Meanwhile, at the lower levels, rank-and-file police officers regularly extort money from the public, and crime victims must pay bribes before the police will handle their cases. As a 102-page report by Human Rights Watch documented, police extortion is so institutionalized that Nigerians are more likely to encounter police demanding bribes than enforcing the law. No wonder Nigeria’s police force was ranked as the worst of those included in the 2016 World Internal Security and Police Index, and that Transparency International’s Global Corruption Barometer survey found that a staggering 69% of Nigerian citizens think that most or all police officers are corrupt.

To combat such a deep-rooted and systemic problem, bold and comprehensive reforms are needed. What would an effective reform agenda look like? Here is an outline of the most important reforms that are needed, drawing on international best practices but also tailored to Nigeria’s particular circumstances: Continue reading

Lessons of Moral Psychology for Anticorruption Strategy

Most countries attempt to fight public corruption through policies that increase the magnitude and the probability of punishment, on the logic that rational individuals will be deterred from engaging in corrupt acts if the expected costs exceed the expected benefits. This approach is certainly valuable, but it is incomplete, and anticorruption strategies based exclusively on a view of potentially corrupt public officials as “rational actors” are unlikely to be fully effective. This is because human beings are not (only) rational animals, they are also moral animals: As already discussed on this blog (see here and here), the decision-making process of a potentially corrupt public official is influenced not only by her calculation of expected (material) costs and benefits, but also by her moral values and self-image.

In fact, when people act in accordance with their own moral standards, their brain-reward centers are activated, which may explain why individuals value honesty and desire to live ethically at their own eyes. Notwithstanding, even otherwise morally upright subjects can engage in corruption. What do individuals take into account when choosing whether to engage in profitable dishonesty or to maintain their positive self-image by adhering to their moral standards?

A growing stream of research on moral psychology and neuroscience has shown that individuals employ certain psychological mechanisms, such as rationalization, that enable them to cheat at a certain level without considering themselves as “cheaters”; this, in turn, allows them to benefit from the dishonest behavior while not damaging their positive self-image. But when it becomes more difficult for people to justify their unethical behavior to themselves, the likelihood that they will engage in dishonest behavior will decrease. The tendency to engage in dishonest behavior is also affected by individuals’ ability to exercise self-control when facing temptation — that is, by their capacity to subdue their desire to attain short-term benefits in order to achieve long-term goals.

Greater attention to these insights would make possible the design of anticorruption policies tailored both to inhibit the use of rationalizations and to encourage the exertion of self-control when individuals face the opportunity to act dishonestly. For example, public agencies (especially those in corruption-prone sectors like public procurement) could take the following steps:  Continue reading

The Crucial Role of Corporate Boards in Ensuring Corporate Integrity

Volkswagen’s diesel emissions cheat has cost the company dearly. Last October, Volkswagen reached a US$16.5 billion dollar settlement with the US government, and the value of Volkswagen’s stock today is worth about 50% of what it was before the scandal – a US$60 billion drop in the company’s valuation. Criminal charges against several senior managers, including chairman Hans Dieter Poetsch, are still pending. Countless customers are furious, while many employees fear for their jobs as Volkswagen scrambles to cut its costs. (Some background on the scandal, as well as a regularly updated timeline, can be found here.)

What started as a “simple cheat” became a slippery slope for the whole company. Volkswagen failed to create a culture of corporate integrity; the institutional checks and balances that are supposed to prevent something like this from happening were purposefully or ignorantly subverted, and the company created all the wrong incentives. As Alison Taylor has argued on this blog, these are the perfect ingredients for a corrupt corporate culture.

Who to blame for this mess (and, similarly, many other corporate messes)? Just as “a fish rots from the head down,” a company’s board of directors must take responsibility for creating or allowing a toxic corporate culture that permits cheating and other unethical and illegal behavior. Continue reading