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CORRUPTION Syndromes of Corruption

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Elite Cartels 101<br />

parties’’ in which state and party extensively interpenetrated while real<br />

competition withered away (Katz and Mair, 1995; RhodesandPujas,<br />

2002). When change came it was abrupt and devastating; interlocking networks<br />

<strong>of</strong> mutually guaranteed deals may have helped control electoral<br />

competition for quite some time, but they were poorly adaptive in the face<br />

<strong>of</strong> accumulating pressures for more basic political and economic change.<br />

Variations on that theme also became apparent a few years later in Korea’s<br />

economic crisis, as we shall see.<br />

In several respects Elite Cartel corruption in Italy may seem a reprise <strong>of</strong><br />

Japan. Major business payments to parties in exchange for policy favors<br />

sustained an electoral hegemony that lasted nearly half a century. The two<br />

countries’ dominant parties eventually suffered unprecedented electoral<br />

defeats at about the same time. But the similarities are limited. Italy’s bureaucracy<br />

was not nearly as autonomous or effective as Japan’s, and its business<br />

sector was dominated by political parties to a far greater extent. In this sense<br />

the reach <strong>of</strong> money politics was more pervasive than in Japan (Buffachi and<br />

Burgess, 1998: 85). The LDP dealt in access to a strong, autonomous<br />

bureaucracy, but Italian parties permeated the state such that bureaucrats<br />

and state agencies were <strong>of</strong>ten the intermediaries between business and the<br />

parties (Waters, 1994: 171; Della Porta, 2002: 721–722). Italian parties<br />

took advantage <strong>of</strong> the weakness <strong>of</strong> the state, but the DC stayed in power<br />

only through extensive collusion with the PSI and other parties, making use<br />

<strong>of</strong> a Communist opposition whose threat was more illusory than real. When<br />

the LDP lost it was in an election, and via the electoral system the party was<br />

back in power within a year. When the DC-led party cartel collapsed, the<br />

First Republic and its entire political class collapsed with it.<br />

In fact the political implosion <strong>of</strong> 1992–4 illustrates some implications <strong>of</strong><br />

Elite Cartel corruption. Elite networks based on corruption may be informal<br />

substitutes for state, political and social institutions, but over time they<br />

can become inflexible and thereby fragile (Nelken, 1996). They are built<br />

upon deals that can be difficult to enforce. Over time, instabilities can arise:<br />

leaders may keep too large a share <strong>of</strong> the spoils, and the price <strong>of</strong> politics may<br />

rise faster than the supply <strong>of</strong> corrupt incentives. For insiders political change<br />

can(andin1994did)meannotjusttemporarydefeatbuttheloss<strong>of</strong><br />

everything. Thus, Elite Cartels will not necessarily adapt to new political<br />

realities or internal tensions. In the face <strong>of</strong> a major external shock – tangentopoli,<br />

in the Italian case – Elite Cartels may not so much bend as break.<br />

Past tense, or present?<br />

A decade after tangentopoli it is still unclear whether we should discuss<br />

Italy’s Elite Cartel corruption in the past or present tense. Today’s

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