Peru is in the midst of yet another major corruption scandal, this one involving a cartel of companies called the Construction Club. The Club allegedly operated as a bid-rigging cartel for major public construction works, in which the members of the Club would decide which one of them would win any given public contract and at what price, and the other Club members would deliberately submit higher bids to create the illusion of a competitive process. What started as an antitrust scandal has turned into a corruption scandal, as the Club is also accused of bribing public officials (including former President Vizcarra) to “guarantee the functioning of the cartel”.
The alleged bribery and bid-rigging are shocking but not surprising. This sort of corruption is all too common in the public procurement process in Peru and elsewhere (see here, here, and here). The vulnerability to corruption stems largely from the lack of accountability and transparency in the public procurement process, as well as the lack of professionalism in the public service. Can anything be done to address these longstanding problems? While there is no simple or overnight solution, there are in fact a number of measures that Peru can and should adopt to address the corruption vulnerabilities in its public procurement process and reduce the likelihood of another incident like the Club scandal recurring in the future.
In each of these countries—and in many other examples—something triggered a shift in the possibilities for anticorruption reform. Pick your favorite metaphor: the stars align, the winds shift, there’s a fork in the road. We use the term “window of opportunity”: a period when heightened attention to an issue like corruption makes anticorruption reforms more likely. When those windows open, reformers both inside and outside of government try to seize the opportunity to make progress, while contending with forces that aim to maintain the status quo or advance an authoritarian or populist response.
Reformers’ approaches shift in these moments, as do their needs. Though success is not guaranteed, the possibility of reform can increase when global support organizations—including foundations, multilaterals, and NGOs—are better able to meet those needs (while also doing no harm). What do reformers most need during these windows of opportunity? And what can global support organizations do to help meet those needs? With the Open Society Foundations (OSF), we undertook research into those questions, with a primary focus on three case studies:
In Guatemala, the “Guatemalan spring” that opened following the announcement of corruption investigations into President Otto Pérez Molina and others in 2015, and the subsequent election of Jimmy Morales;
In Slovakia, the mobilizations under the “For a Decent Slovakia” banner and reform efforts that followed the murder of investigative journalist Ján Kuciak and his fiancée Martina Kušnírová in 2018;
In South Africa, the fight against state capture, which ended Jacob Zuma’s presidency and led to the administration of Cyril Ramaphosa in 2018.
Today’s guest post is from Michael Johnston, the Charles A. Dana Professor of Political Science, Emeritus, at Colgate University.
Few recent political trends have attracted as much concern as the rise of populism and illiberal democracy. Figures like Orbán (in Hungary), Duterte (in the Philippines), Bolsonaro (in Brazil), and Trump (in the U.S.), along with their enablers and sycophants, have disrupted democratic norms and processes in their home countries and encouraged similar movements elsewhere. They have emboldened corrupt and self-dealing actors while weakening and intimidating countervailing political forces. While populists frequently rail against a corrupt and decadent old order, promising to restore citizens to a position of power and sovereignty that in most instances they never actually enjoyed, these leaders seem to have little concern for those citizens after winning their votes. Indeed, perhaps we shouldn’t call these figures “populist” at all, given their tendency to abuse and mislead the very citizens they claim to represent. “Authoritarian nationalist” might be a more accurate label. But whatever we call them, they seem determined to undermine checks and balances and meaningful accountability, as well as the political trust and informal norms on which well-functioning governments depend.
This is bad news for those working to check corruption, as these populist/authoritarian nationalists’ undermining of accountability and institutional checks fosters a pervasive atmosphere of impunity. But might there also be important lessons that the anticorruption community can learn from these movements? I suggest that there are. Indeed, populist followings are telling us something important, something directly relevant to reform, if we listen closely. Continue reading →
Endemic public corruption in developing and transition countries often seems intractable. Yet most countries that are currently perceived as having relatively high levels of public integrity–places like Sweden, Denmark, the United Kingdom, and the United States–were, at an earlier point in their history, afflicted with pervasive corruption similar to what one finds throughout the developing world today. Considering the history these countries may therefore make a valuable contribution to modern debates about anticorruption reform—not so much by providing simple lessons about what policies to adopt, but by offering a broader sense of how the complex process of anticorruption reform unfolds over time, and by calling into question certain widely-held beliefs about this process.
A couple years back, after attending a fascinating presentation by Mariano-Florentino Cuellar (a Justice of the California Supreme Court who somehow manages to continue to hold down his former day job as a professor at Stanford Law School), I became particularly interested in the history of my own country, the United States, in the late nineteenth and early twentieth century. The challenges facing anticorruption reformers in the United States during this period bear a striking resemblance to the challenges facing reformers in modern-day democracies in the developing world. Indeed, the United States is a particularly interesting case study because, in contrast to most of the other Western democracies that are currently perceived as having low corruption, the United States established political democracy well before it embarked on significant “good government” reforms.
Justice Cuellar graciously agreed to collaborate with me, and we finally have a draft paper entitled “Taming Systemic Corruption: The American Experience and its Implications for Contemporary Debates.” The draft now available on SSRN here, and is also available as part of the University of Gothenburg Quality of Government (QoG) Institute’s working paper series. Our article, which focuses principally on the period between 1865 and 1941, does not purport to reach firm conclusions about the reasons that the U.S. struggle against systemic corruption ultimately succeeded—let alone to draw facile “lessons” about “what works.” But we do find that the U.S. experience calls into question a number of commonly-held views about the struggle against corruption in modern developing countries: Continue reading →
Corruption is widely believed to be a self-reinforcing phenomenon, in the sense that the incentive to engage in corrupt acts increases as corruption becomes more widespread in the relevant community. Leading scholars have argued that corruption’s self-reinforcing property implies that incremental anticorruption reforms cannot be effective, and that the only way to escape a high-corruption equilibrium “trap” is through a so-called “big bang” or “big push.” This widespread view is mistaken. After surveying the reasons corruption might be self-reinforcing (or in some cases self-limiting), this paper demonstrates that corruption’s self-reinforcing property does not imply the necessity of a “big bang” approach to reform, and indeed may strengthen the case for pursuing sustained, cumulative incremental anticorruption reforms.
I hope that some readers might find the paper to be of interest. Constructive criticism and other feedback are of course most welcome!