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FILSAFAT KORUPSI - Direktori File UPI

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Students will be required to write a short paper of about 10 pages (double-spaced), either<br />

individually or with a partner, on the problems of corruption within a chosen developing<br />

country or region and propose national or international policy options, based on a<br />

personal analysis.<br />

SCHEDULE<br />

Session 1: Theories about Corruption and Development<br />

This session will consider definitions of corruption, the various types of corruption<br />

identified in the literature (political, administrative, financial, etc.), and specific activities<br />

associated with corruption. It will review some common theories about the impact of<br />

corruption on development. On the one hand, corruption can be seen as introducing<br />

market-type mechanisms into monopolistic situations, as furthering political integration<br />

through political patronage, and as an efficient means of navigating bureaucracies<br />

overburdened by rules. On the other, corruption itself has efficiency costs due to waste<br />

and misallocation of resources, favours the rich at the expense of the poor, misplaces<br />

incentives to maximize rent-seeking behaviour, and ultimately leads to overall political<br />

and social alienation and instability. Further, there is an emerging consensus that<br />

corruption thrives in situations where there is monopoly and discretion without<br />

accountability.<br />

Readings<br />

Klitgaard, Robert. Chapter 2: Objectives, in: Controlling Corruption, 1988.<br />

Nye, J.S. Corruption and Political Development: A Cost-Benefit Analysis, in: A.<br />

J. Heidenheimer, et al., Political Corruption: A Handbook, 1967.<br />

Session 2: The Impact of Corruption on the Rule of Law<br />

This session will examine how corruption undermines the rule of law. In states<br />

weakened by rapid political and economic transitions or experiencing instability due to<br />

conflict or social unrest, corruption can replace state authority, resulting in "rule<br />

evasion" and lawlessness. Under such circumstances, corruption can easily become<br />

linked to organized crime, leading to a disintegration of the state itself in extreme cases.<br />

In overbearing states, the state itself can become an instrument of oppression, limiting<br />

fair access to public goods and services. Without a separation of powers to restrain the<br />

potential abuse of state power, the executive power risks becoming an instrument for<br />

furthering private interests rather than the public interest. In either scenario, in the<br />

absence of protected property rights, enforced contractual obligations, and fair<br />

regulations, corruption deters investment and - ultimately - economic growth. Moreover,<br />

corruption violates public trust, eroding confidence in public institutions and corroding<br />

social capital.<br />

Readings<br />

170

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