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Corruption and Development - pogar

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Table 2 shows a direct correlation between corruption<br />

<strong>and</strong> the measures of governance such as the electoral<br />

process <strong>and</strong> pluralism, political participation <strong>and</strong> civil<br />

liberties. Countries with better indicators of<br />

governance are more likely to report lower incidences<br />

of corruption. Flawed democracies, hybrid regimes<br />

<strong>and</strong> authoritarian regimes are more likely to foster<br />

a more corrupt environment when they try to build<br />

trust among sectoral elites taking advantages of<br />

opportunities for rent-seeking. On the other h<strong>and</strong>,<br />

democracies are better able to control corruption,<br />

since regular elections, political participation, the<br />

political culture <strong>and</strong> civil liberties provide checks <strong>and</strong><br />

balances <strong>and</strong> also punish corrupt politicians.<br />

Moreover, the impact of corrupt practices is often<br />

aggravated when those engaging in them disregard<br />

the long-term sustainability of certain economic<br />

activities, instead exploiting them well beyond their<br />

profitability (Le Billon 2003). For example, the<br />

predatory state was a big obstacle to the economic<br />

development of Haiti. A grossly unfair tax system <strong>and</strong><br />

other mechanisms allowed a small number of people<br />

to profit at the expense of the vast majority of<br />

Haitians.<br />

For almost two centuries, the government collected<br />

tax from the urban class, who then passed the tax<br />

burden on to peasants.<br />

Table 2: Correlation of corruption perception index with governance indicators<br />

<strong>Corruption</strong> Electoral Fuctioning Political Political Civil liberties<br />

Perceptions<br />

Index<br />

process &<br />

pluralism<br />

of<br />

goverment<br />

participation culture<br />

<strong>Corruption</strong> Perceptions<br />

Index<br />

1<br />

Electoral process &<br />

pluralism<br />

-0.50 1.00<br />

Functioning of<br />

goverment<br />

-0.73 0.79 1.00<br />

Political<br />

participation<br />

-0.62 0.81 0.78 1.00<br />

Political culture -0.67 0.41 0.66 0.63 1.00<br />

Civil<br />

-0.60 0.92 0.82 0.79 0.49 1<br />

liberties<br />

Source: 2006 CPI Index from TI <strong>and</strong> all other indicators from the Economist Intelligence Unit Democracy Index 2006.<br />

2.6. <strong>Corruption</strong> <strong>and</strong> conflict<br />

<strong>Corruption</strong> does not necessarily contribute to armed<br />

conflicts; however, it can lead to <strong>and</strong> sustain violent<br />

conflict, in the context of patrimonial regimes that are<br />

degenerating under local or international shocks <strong>and</strong><br />

pressures for reform. <strong>Corruption</strong> could fuel war when,<br />

in the absence of a legitimate political regime, certain<br />

social groups are favoured in the allocation of<br />

resources, thus fuelling grievances among<br />

marginalized groups. For example, the conflicts in<br />

Liberia <strong>and</strong> Sierra Leone provide evidence for the<br />

linkages between the criminalization of politics <strong>and</strong><br />

economic accumulation.<br />

The government was more concerned about collecting<br />

tax than raising the agricultural productivity <strong>and</strong><br />

the living st<strong>and</strong>ards of the rural population. Haiti has<br />

been locked into the process of de-development<br />

(Timilsina 2007).<br />

In post-conflict countries, although corruption does<br />

not always backslide into violence, it often predates<br />

hostilities <strong>and</strong> is among the factors that trigger<br />

political unrest or conflict escalation. Some argue that<br />

an aggressive agenda to curb corruption can actually<br />

obstruct peace-building since post-conflict national<br />

reconciliation is often based on pragmatism <strong>and</strong><br />

appeasement, which does not always result in fair<br />

system of sharing power, being a politically motivated<br />

distribution of state assets.<br />

22

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