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CORRUPTION Syndromes of Corruption

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46 <strong>Syndromes</strong> <strong>of</strong> <strong>Corruption</strong><br />

sporadic, manipulated, and ineffective, as will be the payment <strong>of</strong> <strong>of</strong>ficial<br />

salaries and other government obligations.<br />

The result is corruption that is extensive, linked at times to violence,<br />

and above all unpredictable; it is thus particularly damaging to democratic<br />

and economic development (Campos, Lien, and Pradhan, 1999).<br />

Much <strong>of</strong> the economy may be an <strong>of</strong>f-the-books proposition; outside<br />

investors will find it prudent to go elsewhere, while those who do venture<br />

in will focus on short-term rewards rather than sustained growth (Keefer,<br />

1996). Opposition and reform groups will enter the political arena at their<br />

own risk; most citizens will leave politics to others. Those who do win<br />

<strong>of</strong>fice will find themselves in a framework where formal checks and<br />

balances amount in practice to fragmentation <strong>of</strong> authority creating access<br />

points for oligarchs.<br />

Russia is a high-pr<strong>of</strong>ile case <strong>of</strong> this sort; Mexico and the Philippines<br />

<strong>of</strong>fer other variations on these themes. As we will see in chapter 6 the<br />

Oligarch and Clan syndrome is not just ‘‘more corruption’’ than other<br />

places; rather, it has a logic and implications all its own.<br />

Official Mogul corruption In a final group <strong>of</strong> countries institutions<br />

are very weak, politics remains undemocratic or is opening up only<br />

slowly, but the economy is being liberalized at least to a degree. Civil<br />

society is weak or non-existent. Opportunities for enrichment, and new<br />

risks for the already wealthy, abound – but political power is personal, and<br />

is <strong>of</strong>ten used with impunity.<br />

Here, the entrepreneurs with most leverage will be top political figures<br />

or their clients. Officials may become economic moguls; would-be<br />

moguls need <strong>of</strong>ficial backing. Once the political connections have been<br />

made they face few constraints from the state framework or from competitors.<br />

There is a risk – and in some cases the reality – <strong>of</strong> kleptocracy, or rule<br />

by thieves (Andreski, 1968). Of our four corruption syndromes this one is<br />

least focused upon influence within <strong>of</strong>ficial state processes: institutions<br />

and <strong>of</strong>fices may be merely useful tools in the search for wealth. Ironically,<br />

however, such situations are not necessarily stable: those who hold power<br />

without rules may face foes who are similarly unconstrained, save by the<br />

threat <strong>of</strong> violence. Neither rulers nor counter-elites (if any) are likely to<br />

enjoy much sustained popular support or credibility beyond that created<br />

through patronage or intimidation. In the worst <strong>of</strong> these cases one person,<br />

a family, or a small junta enjoys unchecked rule. Military leaders may be<br />

partners, and in some cases are dominant, in such regimes, <strong>of</strong>ten using<br />

past corruption as a pretext for taking power. Even where the soldiers<br />

have returned to their barracks top brass may be businessmen and politicians<br />

too, backed by the threat <strong>of</strong> military intervention. Development <strong>of</strong>

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