Systemic Corruption

A bold new approach to combatting the inherent corruption of representative democracy This provocative book reveals how the majority of modern liberal democracies have become increasingly oligarchic, suffering from a form of structural political decay first conceptualized by ancient philosophers. Systemic Corruption argues that the problem cannot be blamed on the actions of corrupt politicians but is built into the very fabric of our representative systems. Camila Vergara provides a compelling and original genealogy of political corruption from ancient to modern thought, and shows how representative democracy was designed to protect the interests of the already rich and powerful to the detriment of the majority. Unable to contain the unrelenting force of oligarchy, especially after experimenting with neoliberal policies, most democracies have been corrupted into oligarchic democracies. Vergara explains how to reverse this corrupting trajectory by establishing a new counterpower strong enough to control the ruling elites. Building on the anti-oligarchic institutional innovations proposed by plebeian philosophers, she rethinks the republic as a mixed order in which popular power is institutionalized to check the power of oligarchy. Vergara demonstrates how a plebeian republic would establish a network of local assemblies with the power to push for reform from the grassroots, independent of political parties and representative government. Drawing on neglected insights from Niccolò Machiavelli, Nicolas de Condorcet, Rosa Luxemburg, and Hannah Arendt, Systemic Corruption proposes to reverse the decay of democracy with the establishment of anti-oligarchic institutions through which common people can collectively resist the domination of the few.

This paper argues that corruption patterns are endogenous to political structures. Thus, corruption can be systemic and planned rather than decentralized and coincidental. In an economic system without law or property rights, a kleptocratic state may arise as a predatory hierarchy from a state of pure anarchy. A dictator minimizes the probability of a palace revolution by creating a system of patronage and loyalty through corrupt bureaucracy. Competitive corruption patterns are associated with anarchy and weak dictators, while strong dictators implement a system of monopolistic corruption. Efforts at public sector reform may meet resistance in countries featuring such systemic corruption.

This book deals with large-scale, systemic corruption, a phenomenon that it identifies as part of the political landscape in most, if not all, societies of the contemporary world. While the analysis is grounded in the political thought of earlier thinkers, especially Edmund Burke, and integrates the insights of several modern analysts of corruption, the volume offers a new, updated theoretical perspective on the topic. This perspective reflects deep concerns with corruption in a world facing accelerated social transition, increased economic polarization, and growing distrust toward political elites in many countries. This book approaches corrupt practices both theoretically and empirically, offering the perspectives of scholars who come to the topic from different traditions and cultures. It contains the collective efforts of members of the Research Committee on Political Finance and Public Corruption of the International Political Science Association. In formulating a comprehensive approach on corruption, the volume offers insights in regard to new developments in the United States, in Middle Eastern countries (especially in the wake of the Arab Spring), in several European counties (Austria, Italy, Spain), as well as in the People’s Republic of China. The analysis goes beyond the traditional legal definitions of corruption or purely economic views of it and focuses more broadly on institutional, cultural, and normative dimensions of this globally important phenomenon.

This paper argues that corruption patterns are endogenous to political structures. Thus, corruption can be systemic and planned rather than decentralized and coincidental. In an economic system without law or property rights, a kleptocratic state may arise as a predatory hierarchy from a state of pure anarchy. A dictator minimizes the probability of a palace revolution by creating a system of patronage and loyalty through corrupt bureaucracy. Competitive corruption patterns are associated with anarchy and weak dictators, while strong dictators implement a system of monopolistic corruption. Efforts at public sector reform may meet resistance in countries featuring such systemic corruption.

The critical role of governance in the promotion of economic development has created intense interest in the manner in which the United States eliminated corruption. This paper examines the concept of corruption in American history; tracing the term corruption to its roots in British political philosophy of the 17th and 18th century, and from there back to Machiavelli, Polybius and Artistole. Corruption was defined prior to 1850 in a way that was significantly different from how it was defined in the Progressive Era. "Systematic corruption" embodied the idea that political actors manipulated the economic system to create economic rents that politicians could use to secure control of the government. In other words, politics corrupts economics. The classic cure for systematic corruption was balanced government. Americans fought for independence because they believed that the British government was corrupt. The structure of American constitutions was shaped by the need to implement balanced government. Conflict and debate over the implementation of balanced government dominated the political agenda until the 1840s, when states began moving regulatory policy firmly towards open entry and free competition. By the 1890s, systematic corruption had essentially appeared from political discourse. By then corruption had come to take on its modern meaning: the idea that economic interests corrupt the political process. What modern developing countries with corrupt governments need to learn is how the United States eliminated systematic corruption.

Much of the devastation caused by the recent earthquake in Turkey was the result of widespread corruption between the construction industry and government officials. Corruption is part of everyday public life and we tend to take it for granted. However, preventing corruption helps to raise city revenues, improve service delivery, stimulate public confidence and participation, and win elections. This book is designed to help citizens and public officials diagnose, investigate and prevent various kinds of corrupt and illicit behaviour. It focuses on systematic corruption rather than the free-lance activity of a few law-breakers, and emphasises practical preventive measures rather than purely punitive or moralistic campaigns.