CORRUPTION Syndromes of Corruption
CORRUPTION Syndromes of Corruption
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