Some Key Terms of the Course

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Published on 12 Apr 2011
School
Course
Who cares about corruption?
Required Chapters and Articles
News articles - expect you to gain insight and illustrations from them. This week, unique
‘browse’ request Want you to skim articles - all news stories to get an idea of range of
corruption issues, pervasiveness of the problem and geographic range.
Recommended articles are not directly on the exams.
Most are not textbooks, chock full of concepts and new terms. Even our primary text are
not traditional textbooks, P and V is written for an undergrad audience and does a
great job introducing some important concepts.
BGG is written for academics and policy-makers, maybe for students writing reports.
For each of the academic article you need to know the important points of it and the
evidence that supports it.
You often only need to read the introduction and conclusion and skim the middle. You
may want to check for key term.
A five minute presentation with a partner that talks about corruption. Keep it short and
bring in key ideas. Keep the presentation simple and focus. Provide sources even if
you its your on recollection.
Chapter 1: Introduction
Countries have capital to grow so they can remain stable, however countries need capital
because their human population is growing and natural resources otherwise they will
fail.
Having capital is not enough for social stability. Example: Kenyan coffee maker are
prosperities and Ugandan are not because one has violence and the other has peace.
Kenya vs. Uganda: Kenya have harbours, infrastructure, and confidence, while Uganda
have a military dictatorship, stagnation and fear.
Bates expects that future generation will benefit from investment for Kenya. However
Uganda the fear scare away the people from investing because the profits in the future
may not be guaranteed due to the dictator taking it.
Bates argues that having capital enough, there must be so guarantee that the investor will
get the profit.
Violence scares away investors, while corruption, the investors may fear that they would
have enough money to pay bribes.
Varieties and Causes of Corruption
Why do people care about corruption in Afghanistan, Russia, China, and Africa? The
health and safety of the people there Logging illegally can cause the price of wood to
go down, environment disaster, and others.
Donators wants to keep corruption to level the playing field for self interest.
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Rather than completing a variety of task, we hire others, an agent, to complete the task on
our behalf.
The agents job is to work on principals behalf, keeping in mind best interest of principal.
Delegation is indispensable when principal has other tasks they need to complete, when
completing a task oneself is unrewarding, when special expertise is required and when
enforcement is necessary.
The principal agent problem arise when they to scam.
Either player desires maximum gain for minimal effort,
Asymmetric information is when the principal cannot observe, evaluate or understand
agents actions,
Easy to corrupt of skimming.
Enforcement agents takes the advantage of its powers derived from principal to enforce
contracts and rule of law and uses power to rule principal.
Self-interest does not mean that people are no necessarily selfish nor that people will not
act to help others.
It does examine when agents will take advantage of principals
There are many ways to try to solve minimize principal agent problem.
There are many situation were self-interest coassignee with the principal.
There are four varieties of corruption: dash
Are bribes any different thantips like at a restaurant? Do bribes reward good service,
solving principal agent problem since bribes compensation to customers satisfaction?
Bribes are solicited before the work is done.
What if there were incentives to “do your own things and pursue your self interest rather
than the interest of the entire group?
Prisoners Dilemma: Two burglary suspects have been arrested. Each has two options,
confess or keep their mouths shut. If both keep their mouths shut, they’ll stay in jail
for possession of stolen property for a maybe a year. If one confesses and name the
other as a criminal than one will go free and the other be punished with 20 years in
prison. If both confess, than both still will go to prison with five years each. What
should each prisoner do? If Prisoner B confesses, what is the best course of action for
Prisoner A? If Prisoner B keeps mouth shut, what is the best course of action for
Prisoner A? therefore, if Prisoner A finds himself in a dilemma if is best to confess
and same with the other.
The best interest of group usually need an enforcement mechanism. Self-interest can
make society worst off. Challenge for society: create institutions to induce
cooperation or keep self-interest at bay. Undeveloped nations that fail to mange itself
will be warned down, while developed nations will stay fit. Thus, the rich gets richer,
the poor get poorer.
An ideal state is that it control a defined territory and population; have monopoly on use
of force; have a set of rule-bound institutions that perform governing tasks like
regulation.
Less an ideal states lack border, monopoly of use of force, is not able to perform normal
state functions. State is extractive, taking resources from domestic economy without,
providingnormal benefits like regulation, contract enforcement, ect. State=person.
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Clapham describes post-colonialization process in which society took over state, its
powers and its resources, subverting rational-legal authority in order to use it for
personal benefit. The two main forms: Neo-patrimonialism and clientelism.
Neo-patrimonism look like rational-legal structures, but underlying it is a pattern of
personal hierarchies.
Clientelism
Bureaucrats answer to the personal whims of their patrons, not to legal framework. The
people are not the principal and the power becomes very concentrated and delegation
is rare.
Clientelism is when a superior or patron provides some scarce good in exchange for
support. Carrots to support a system of government. Delegation occurs, as mid-level
clients allocate scarce goods to lower-level clients maintain support.
Van de Walle: Two types of Clientelism; Patronage is the practice of using state
resources to provide jobs and services for political clienteles. Prebendalism is an
individual is given a public office in order for him to gain personal access over state
resources.
Prebends are most common with non-democratic states. If there is no way to remove
current officials, then whats stopping them from skimming/taking/stealing/abusing?
Why clientelism? Some of the theories are community cultural norms; outgrowth of
loyalties to kin; maintains salience of kin-not class- relationship; way of keeping
loyalty of poor without spending many resources; way to get out the vote or get other
good”.
Patronage is legal, but the number of jobs may not ever be high enough to mobilize
enough supporters to win competitive elections in poor countries.
Clientelistic appeals more instead of programmatic appeals. O
Stoke stresses that what distinguishes clientelism is combination of bias and an
expectation of a quid pro quo. “I’ll rub your back if you rub mine.
Clientelism explains patterns of competition that include one large dominant party and
many smaller parties.
Politicians join large party because that party tends to have the most resources.
Corruption and Clientelism in Latin America
A party rule for 70 years in Mexico, the police where concern with maintaining power of
the party. Does alternation in power discourage corruption?
What is the relationship between corruption and inequality? An experimental method to
investigate this, we watch police pullover drivers he an illegal turn. Both the lower
and the upper class drivers are pull over equally. Lower-class drivers are ask for
bribes, while the upper-class drivers are left with a warning.
The police are afraid to offend the wrong driver so they not ask bribes from the upper-
class driver.
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Document Summary

News articles - expect you to gain insight and illustrations from them. Browse" request want you to skim articles - all news stories to get an idea of range of corruption issues, pervasiveness of the problem and geographic range. Recommended articles are not directly on the exams. Most are not textbooks, chock full of concepts and new terms. Even our primary text are not traditional textbooks, p and v is written for an undergrad audience and does a great job introducing some important concepts. Bgg is written for academics and policy-makers, maybe for students writing reports. For each of the academic article you need to know the important points of it and the evidence that supports it. You often only need to read the introduction and conclusion and skim the middle. You may want to check for key term. A five minute presentation with a partner that talks about corruption. Keep it short and bring in key ideas.

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