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FILSAFAT KORUPSI - Direktori File UPI

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For those reasons, anti-corruption efforts gained a level support which they never had before. However, the<br />

success of such efforts has been limited. 32).<br />

My argument is that they have been inadequate because of their formalist approach to corruption, focused<br />

on the adoption of anti-corruption laws with little regard to the<br />

structural causes of corruption. Particularly in Latin America, such formalist approaches have<br />

28). See Shleifer and Vishny, supra note 12.<br />

29). See Susan Rose-Ackerman, CORRUPTION : A S TUDY IN POLITICAL ECONOMY 212 (Academic<br />

Press, 1978).<br />

30). See Paolo Mauro, Corruption and Growth, 110 Q UARTERLY J OURNAL OF ECONOMICS, 681,<br />

686 (1995).<br />

31). See Shang-Jin Wei, How Taxing is Corruption on International Investors, 82 T HE REVIEW OF<br />

ECONOMICS AND STATISTICS 1, 8 (2000).<br />

32). As an example of such formalization efforts, see reports regarding the 1997 OECD Convention on<br />

Combating Bribery of Foreign Public Official on Transnational Business Transaction. See OECD Staff,<br />

THE OECD ANTI –BRIBERY CONVENTION : DOES IT WORK ? (OECD, 2006) available at<br />

http://www.oecd.org/dataoecd/43/8/34107314.pdf.<br />

Page 15<br />

proved incapable of reducing perception of corruption. 33). Most countries have anti-corruption<br />

laws. However, selective enforcement of corruption laws, usually focused on opposing parties,<br />

has done little to increase the legitimacy of political institutions. An alternative argument, which I believe<br />

is particularly relevant in the case of Latin America, would be that perception of corruption is correlated<br />

with economic inequality and that both are locked in a vicious circle in which economic inequality<br />

increases corruption and corruption increases inequality. 34).<br />

Other theories have already accounted for the obvious fact that<br />

corruption has negative distributive consequences. Corruption by stealing diverts public<br />

resources, reducing the capacity of government to invest, and corruption through bribery benefits<br />

certain powerful groups, at the expense of the majority of the population.35).<br />

However, another almost obvious conclusion is that inequality in the distribution of wealth also stimulates<br />

corruption, once the wealthier will use their economic resources to protect their privileges.<br />

Hence, the circle is extremely difficult to break if anti-corruption efforts are not also targeted at<br />

distributing political and economic power. Other analyses following this path also identified a strong<br />

correlation between perception of corruption and measures of income inequality based on the GINI Index.<br />

One interesting approach was to control levels of protection of private property, considering it as a proxy<br />

for institutionalization. It demonstrated that, in societies in which there is a strong protection of<br />

33). At this point it is impossible to disentangle real corruption from perception of corruption. I argued that<br />

perception of corruption has a disruptive effect independent of the existence or not of corruption. It is also<br />

true that there is no better measure of reduction of real corruption than the reduction on the perception of<br />

corruption. For the purpose of this paper, the fact that formalist approaches to corruption did not reduce<br />

perception of corruption is a sufficient argument once I am mainly concerned with perception, not real<br />

corruption.<br />

34). See Appendix I to III. Correlating the Corruption Perception Index from Transparency International<br />

for 1997 to 2003 with the GINI Index in the WIDER database also from 1997 to 2003 for 84 countries, I<br />

found a strong negative correlation between both indexes (-.53) demonstrating that income inequality is a<br />

good predictor of corruption perception. For similar results with different databases, see Edward Glaeser,<br />

Jose Scheinkman, and Andrei Shleifer, The Injustice of Inequality, 50 Journal of Monetary Economics 199<br />

(2003).<br />

Page 16<br />

private property, the effect of economic inequality in corruption is lower.36). In general, I would<br />

argue that, in the long run, inequality stimulates corruption even in countries with well<br />

established institutions. Corruption, or more properly, the perception of corruption, is firmly<br />

196

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