Lecture 11: money, networks and power: corruption and clientelism

Question 1

definition corruption

Answer 1

the abuse of entrusted power for private gain

• grand vs. petty corruption
• can take many forms: bribery, extortion

Question 2

causes of corruption

Answer 2

Institutional factors
- type of democracy
- type of public administration
- size of government
Social norms
- generalized trust
- religion

Question 3

corruption as prinicpal-agent problem

Answer 3

principal agent

• information asymmetry between them
• corruption= when agent betrays (don’t do tasks) a principal to pursuit their self-interest

solution: more transparency, monitoring or punishment regimes

Question 4

Guanxi meaning

Answer 4

• • based on mutual responsibility
• informal: complements or substitutes the formal institutions and legal system
• prone to collective corruption: individu’s decision to engage in corruption is affected by the corrupt activities of others

Question 5

how to study corruption networks

Answer 5

• what are relevant nodes in the corruption entwork?
• How strong are those ties?
• centrality (betweenness, closeness)
• importance of homophily: connections among people with similar characteristics

Question 6

definition lobbying

Answer 6

To conduct activities aimed at influencing public officials and especially members of a legislative body on legislation

Question 7

verschil tussen lobbying and bribery

Answer 7

lobbying:
- trying to influence power
- legal
- can also have positive effects
- changes in rules can affect all firms
- governments often target
Bribery:
- trying to buy power
- illegal
- only negative effects
- returns are specific to the bribing firm
- target often a specific civil servant

Question 8

definition political clientelism

Answer 8

The proffering of material goods in return for electoral support, where the criterion of distribution that the patron uses is simply: did you (will you) support me?

• voorbeeld: ik geef jou geld als je op mij stemt
• vaak verschil in status, power or resources
• voluntary and reciprocal, but at the same time exploitative

Question 9

how does political clientelism work?

Answer 9

• works through intermediaries (brokers) so they target and deliver goods to voters and monitor the responses

Question 10

what type of people are the best brokers for political clientelism?

Answer 10

• not necessary brokers with political affiliation: just ones everyday problems
• solving everyday problems in the neighbourhood
• important to have f-t-f interaction