Session 6: Institutions and Corruption Flashcards
1
Q
Institution-based view
A
The main purpose of institutions is to reduce uncertainty (unsicherheit)
2
Q
Dimensions of institutions
A
- Formal institutions: Institutions represented by laws, regulations, and rules
- Informal institutions: Rules that are not formalized but exist in for example norms and values
3
Q
Political systems
A
- Totalitarianism (dictatorship): System in which one person or party exercises absolute political control over the population
- Democracy: System in which citizens elect representatives to govern the country on their behalf
4
Q
Economic systems
A
- Command economy: All factors of production are government- or state owned and controlled; supply, demand, and
pricing are planned by the government - Market economy: Characterised by the “invisible hand” of market forces; government takes a hands-off, or laissez faire approach
5
Q
Legal Systems
A
- Civil law und Common law
6
Q
Religion
A
Religion is a major manifestation of culture, and it is the source of various differences in norms and values across countries.
7
Q
The dimension approach (Hofstede), Basic Assumptions
A
Basic assumptions:
- Cultural dimensions influence individual behavior.
- Countries differ with regard to various dimensions,which are stable and can be identified.
8
Q
Cultural dimensions
A
- Power Distance
- Individualism
- Mascunlinity
- Uncertainty Avoidance
- Long-Term Orientation
9
Q
Corruption
A
Der Missbrauch von anvertrauter Macht zum privaten Nutzen
10
Q
Measurement Corruption:
A
- Corruption Perception Index (CPI)
- Global Corruption Barometer (GCB)
- Bribe Payers Index (BPI)
11
Q
Types of corruption
A
- Große Korruption
- Kleine Korruption
- Politische Korruption
12
Q
Costs of corruption
A
- Political
- Economic
- Society
- Environment
