Institutions, Governance and the Control of Corruption PDF
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INSTITUTIONS, GOVERNANCE AND THE CONTROL OF CORRUPTION Edited by Kaushik Basu and Tito Cordella IEA Conference Volume No. 157 International Economic Association Series Moreinformationaboutthisseriesat http://www.springernature.com/series/13991 OthertitlesfromIEA: INEQUALITYANDGROWTH:PATTERNSANDPOLICY VolumeII:RegionsandRegularities EditedbyKaushikBasuandJosephE.Stiglitz INEQUALITYANDGROWTH:PATTERNSANDPOLICY VolumeI:ConceptsandAnalysis EditedbyKaushikBasuandJosephE.Stiglitz THEMIDDLEEASTECONOMIESINTIMESOFTRANSITION EditedbyGalalAhmedandIshacDiwan TOWARDSAGENERALTHEORYOFDEEPDOWNTURNS PresidentialAddressfromthe17thWorldCongressoftheInternationalEconomicAssociationin2014 JosephE.Stiglitz CONTEMPORARYISSUESINMACROECONOMICS LessonsfromtheCrisisandBeyond EditedbyJosephE.Stiglitz CONTEMPORARYISSUESINMICROECONOMICS EditedbyJosephE.Stiglitz CONTEMPORARYISSUESINDEVELOPMENTECONOMICS EditedbyTimothyBesley TAMINGCAPITALFLOWS CapitalAccountManagementinanEraofGlobalization EditedbyJosephE.StiglitzandRefetGurkaynak LIFEAFTERDEBT TheOriginsandResolutionsofDebtCrisis EditedbyJosephE.StiglitzandDanielHeymann INCOMECONTINGENTLOANS Theory,PracticeandProspects EditedbyJosephE.Stiglitz,BruceChapmanandTimothyHiggins THEINDUSTRIALPOLICYREVOLUTIONI TheRoleofGovernmentBeyondIdeology EditedbyJosephE.StiglitzandJustinLinYifu THEINDUSTRIALPOLICYREVOLUTIONII Africainthe21stCentury EditedbyJosephE.Stiglitz,JustinLinYifuandEbrahimPatel THECHINESEECONOMY ANewTransition EditedbyMasahikoAokiandJinglianWu INSTITUTIONSANDCOMPARATIVEECONOMICDEVELOPMENT EditedbyFranklinAllen,MasahikoAoki,NobuhiroKiyotaki,RogerGordon,JosephE.StiglitzandJean-PaulFitoussi COMPLEXITYANDINSTITUTIONS:MARKETS,NORMSANDCORPORATIONS EditedbyMasahikoAoki,KennethBinmore,SimonDeakinandHerbertGintis CORPORATESOCIALRESPONSIBILITYANDCORPORATEGOVERNANCE TheContributionofEconomicTheoryandRelatedDisciplines EditedbyLorenzoSacconi,MargaretBlair,R.EdwardFreemanandAlessandroVercelli ISECONOMICGROWTHSUSTAINABLE? EditedbyGeoffreyHeal KEYNE’SGENERALTHEORYAFTERSEVENTYYEARS EditedbyRobertDiman,RobertMundellandAlessandroVercelli CORRUPTION,DEVELOPMENTANDINSTITUTIONALDESIGN EditedbyJánosKornai,LászlóMátyásandGérardRoland MARKETANDSOCIALISM IntheLightoftheExperienceofChinaandVietnam EditedbyJánosKornaiandYingyiQuian INSTITUTIONALCHANGEANDECONOMICBEHAVIOUR EditedbyJánosKornai,LászlóMátyásandGérardRoland INTERGENERATIONALEQUITYANDSUSTAINABILITY EditedbyJohnE.RoemerandKotaroSuzumura PSYCHOLOCY,RATIONALITYANDECONOMICBEHAVIOUR ChallengingStandardAssumptions EditedbyBinaAgarwalandAlessandroVercelli MULTINATIONALSANDFOREIGNINVESTMENTINECONOMICDEVELOPMENT EditedbyEdwardM.Graham POST-CONFLICTECONOMIESINAFRICA EditedbyPaulCollierandAugustinKwasiFosu STRUCTURALREFORMANDMACROECONOMICPOLICY EditedbyRobertM.Solow THEPAST,PRESENTANDFUTUREOFTHEEUROPEANUNION EditedbyAlanV.Deardorff LATINAMERICANECONOMICCRISES TradeandLabour EditedbyEnriqueBour,DanielHeymannandFernandoNavajas ADVANCESINMACROECONOMICTHEORY EditedbyJacquesH,Drèze EXPLAININGGROWTH AGlobalResearchProject EditedbyGaryMcMahonandLynSquire TRADE,INVESTMENT,MIGRATIONANDLABOURMARKETADJUSTMENT EditedbyDavidGreenaway,RichardUpwardandKatherineWakelin INEQUALITYAROUNDTHEWORLD EditedbyRichardB.Freeman MONETARYTHEORYANDPOLICYEXPERIENCE EditedbyAxelLeijonhufvud MONETARYTHEORYASABASISFORMONETARYPOLICY EditedbyAxelLeijonhufvud ECONOMICDEVELOPMENTINSUBSAHARANAFRICA ProceedingsoftheEleventhWorldCongressoftheInternationalEconomicAssociation,Tunis EditedbyIbrahimElbadawiandBenoNdula InternationalEconomicsAssociation SeriesStandingOrderISBN978-0-3337-1242-9(Hardback) 978-0-3338-0330-1(Paperback) (outsideNorthAmericaonly) Youcanreceivefuturetitlesinthisseriesastheyarepublishedbyplacingastandingorder.Pleasecontactyourbookseller or,incaseofdifficulty,writetousattheaddressbelowwithyournameandaddress,thetitleoftheseriesandoneofthe ISBNsquotedabove. CustomerServicesDepartment,MacmillanDistributionLtd,Houndmills,Basingstoke,HampshireRG216XS,England KaushikBasu•TitoCordella Editors Institutions, Governance and the Control of Corruption Editors KaushikBasu TitoCordella TheWorldBank TheWorldBank Washington,DC,USA Washington,DC,USA InternationalEconomicAssociationSeries ISBN978-3-319-73822-2 ISBN978-3-319-65684-7 (eBook) https://doi.org/10.1007/978-3-319-65684-7 LibraryofCongressControlNumber:2017955820 ©TheEditor(s)(ifapplicable)andTheAuthor(s)2018 Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher,whether thewholeorpartofthematerialisconcerned,specificallytherightsoftranslation,reprinting,reuse ofillustrations,recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,and transmissionorinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilar ordissimilarmethodologynowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthisbook arebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor theeditorsgiveawarranty,expressorimplied,withrespecttothematerialcontainedhereinorforany errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional claimsinpublishedmapsandinstitutionalaffiliations. Printedonacid-freepaper ThisPalgraveMacmillanimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland Thepromotionofsharedprosperityandthebattleagainstpovertyrequire interventionstoreachouttothepoorandthedisadvantaged.Yettimeand againwehaveseensucheffortfoiledordiminishedbycorruptionand leakage.Thecreationofgoodgovernanceandinstitutionsandstructuresto combatcorruptionrequiredeterminationandpassionbutalsointricate designrootedindata,analysis,andresearch.Inthisbook,leading researchersfromaroundtheworldbringtothetablesomeofthebest availableideastohelpcreatebettergovernancestructures,designlawsfor corruptioncontrol,andnurturegoodinstitutions. Contents 1 Introduction 1 KaushikBasuandTitoCordella 2 Anti-corruptionInstitutions:SomeHistoryandTheory 15 AvinashDixit 3 CorruptionasaPoliticalPhenomenon 51 FrancisFukuyama 4 Corruption,OrganizedCrime,andMoneyLaundering 75 SusanRose-AckermanandBonnieJ.Palifka 5 ReflectionsonCorruptionintheContextofPolitical andEconomicLiberalization 113 PranabBardhan 6 WhyisItalyDisproportionallyCorrupt?:AConjecture 133 DiegoGambetta 7 Cohesive Institutions and the Distribution ofPoliticalRents:TheoryandEvidence 165 TimothyBesleyandHannesMueller 8 IfPoliticsistheProblem,HowCanExternalActors bePartoftheSolution? 209 ShantayananDevarajanandStutiKhemani ix x Contents 9 FightingPoliticalCorruption:EvidencefromBrazil 253 ClaudioFerrazandFredericoFinan 10 What Drives Citizen Perceptions of Government Corruption?NationalIncome,PettyBribePayments andtheUnknown 285 NancyBirdsall,CharlesKenny,andAnnaDiofasi 11 DoingtheSurveyTwo-Step:TheEffectsofReticence on Estimates of Corruption in Two-Stage Survey Questions 335 NonaKaralashvili,AartKraay,andPeterMurrell Index 389
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