On Corruption

Taking a break from his GAB duties, our indefatigable editor-in-chief Matthew Stephenson provides readers of Liberties, a leading American journal on culture and politics, a tutorial on corruption. GAB readers will not want to miss it. For in less than 10,000 words, his essay not only make sense of the (tens of? hundreds of?) millions of words written on the topic but provides corruption fighters an order of battle.

Citing passages from the Hebrew Bible and the great Indian text on governance the Arthaśāstra, Matthew reminds that corruption has always been with us and always tolerated — if only grudgingly. What’s new is the extraordinary international consensus that has formed over the past quarter century to end that toleration. Matthew explains how that consensus developed and the opposition it has had to overcome. From those who argue that in some societies corruption is culturally acceptable, from those who believe corruption fosters economic development, and from those think nothing can be done to combat it.

He calls each of these claims a “quasi-myth,” for each contains a kernel of truth, just enough to make a debater’s point. He crushes each, with the cultural determinate one quoting Edmund Burke’s pithy response that the claim of “geographical morality” simply doesn’t stand up to scrutiny.  

The research on corruption has exploded over the past two decades. Matthew’s bibliography is now at 720 pages! He seems to have read every one of the articles, for he brings their findings to bear on the pros and cons of the various solutions that have been proposed — “wise king,” “moment of crisis,” “long slog” — interweaving stories how Denmark, Sweden, and the United States overcame entrenched corruption. He admits that taming corruption is no easy task, especially where it involves persuading corrupt elites reform is critical (“bit like trying to convince turkeys to support Thanksgiving”), but he concludes that while history shows the cancer of corruption can never be fully eradicated “progress against this chronic disease of the body politic is possible, so long as those engaged in the fight do not lose heart.”

The full text of Matthew Stephenson, “Honey and Poison: On Corruption,” Liberties, Summer 2021 is here.

Something Is Rotten from the State of Denmark

In this year’s Corruption Perception Index (CPI) rankings, Denmark yet again topped the list (tied with New Zealand) as the world’s cleanest country. But the CPI has well-known limitations—including the fact that it focuses on corruption within countries while excluding how country’s nationals behave abroad. And in this latter context, Denmark performs rather poorly. Danish companies have faced numerous credible allegations of paying bribes worth hundreds of millions of dollars in dozens of countries (see, for example, here, here, here, here, here, here, and here). Several of those countries have been sanctioned by the World Bank and the European Union. Yet Danish companies have largely escaped suffering any consequence within Denmark for their corrupt practices abroad. Of the thirteen major allegations of foreign bribery brought in the last decade by Danish authorities against Danish companies, several closed without adequate investigation, and none resulted in any prosecution. No wonder that Denmark’s last report card on from the OECD’s Anti-Bribery Working Group—released in 2015—found Denmark’s performance in enforcing its laws against foreign bribery to be deeply wanting. Yet six years and many public commitments later, Denmark has done very little (other than publishing a three-page “How to avoid corruption” pamphlet) to address its shortcomings in this area.

So, what’s stopping the “least corrupt” country in the world (at least, according to the CPI) from tackling its foreign bribery problem? If allegations of foreign bribery are widespread and credible, why have Danish companies continued to enjoy effective domestic impunity? There are two ways to answer this question, one of which focuses on the legal deficiencies in Denmark’s criminal code, which make it hard for prosecutors to bring winning cases, and the other of which focuses on the reasons why Denmark hasn’t changed these laws, notwithstanding critical commentaries and advice from organizations like the OECD.

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New Podcast, Featuring Samuel Power

A new episode of KickBack: The Global Anticorruption Podcast is now available. In this week’s episode, my collaborator Christopher Starke interviews Samuel Power, a Lecturer in Corruption Analysis at the University of Sussex, about his research on the relationship between political party financing and corruption. The conversation focuses on his comparative research on political funding in Denmark and the United Kingdom, as well as several related topics, including the corruption risks associated with social media  and also touches on his more recent work on social media advertising by political parties.

You can find links to this episode on various platforms here. You can also find both this episode and an archive of prior episodes at the following locations:

KickBack is a collaborative effort between GAB and the ICRN. If you like it, please subscribe/follow, and tell all your friends! And if you have suggestions for voices you’d like to hear on the podcast, just send me a message and let me know.