Corruption and Governance

Vocabulary flashcards about corruption and governance.

Crony Capitalism

Political favors exchanged for financial rewards; widespread, but with different effects due to elite configuration.

Mutual Hostage

State and business elites were interdependent and constrained each other, allowing growth alongside corruption in Korea.

Bandwagoning Politics

Fragmented elites competed over spoils with no constraint, leading to uncoordinated and predatory behavior in the Philippines.

Booty Capitalism

State institutions (particularly banks) are used by elites as instruments for personal wealth accumulation.

Rent Capitalism

Economic activity depends on political connections rather than market logic. Entrepreneurs must pay rents to gain access to state-controlled resources.

Influence Markets

Corruption occurs through formal channels: government contracts, campaign funding, etc.

Elite Cartels

Collusion among business conglomerates (chaebols) and government officials.

Oligarchs and Clans

Political and economic power is concentrated among dynastic families and regional bosses.

Official Moguls

Corruption is hierarchical and integrated into state operations.

Grand corruption

The abuse of high-level power for private gain in both authoritarian and democratic settings due to weak institutions.

Politically Exposed Person (PEP)

An individual who is or has been entrusted with a prominent public function and may be susceptible to bribery or corruption.

Kleptocracy

A government or state ruled by thieves; those in power seek primarily personal gain at the expense of the governed, often with no pretense of honest service.

Patronage or the padrino system

The value system in Filipino culture and politics where one gains favor, promotion, or political appointment through family affiliation (nepotism) or friendship (cronyism), as opposed to one’s merit.

Clientelism

The direct exchange of a citizen’s vote in return for direct payments or continuing access to employment, goods and services.

Patronage appointments

The power of political actors to appoint by discretion individuals to non-elective positions in the public sector, irrespective of the legality or otherwise of the decision.

Vote buying

Offering money, goods, or services to influence electoral behavior.

Pork Barrel Politics

Practice of politicians using government funds and resources to finance projects within their local constituencies, primarily for gaining support vs public interest.

Earmarking

The practice of setting particular money aside for a specific purpose.

Kotong

Bribery between traffic enforcers and motorists.

Resource curse or blessing

Wealth from natural resources can lead to either negative outcomes or positive development depending on governance.

Procurement

Government purchases of goods and services

Concessions

Government grants to private firms to exploit public resources

Privatization

Transfer of state-owned enterprises to private hands

Programmatic Spending

Connected or supported by policies and has a long-term horizon.

Particularistic spending

not connected or supported by policies and only has short-term goals.

Who are targeted by pork barrel politics?

Core voters and swing voters

Why do politicians engage in pork?

to secure re-election

Stick measures

Using the legal system to reduce corruption

Penalties for corruption

Sentences are typically soft; stiff penalties are the exception globally

Anti-Corruption Agency

An independent institution with the mandate to detect, investigate, monitor, prosecute, and prevent corruption.

Office of the Tanodbayan (Ombudsman)

Constitutionally created office responsible for investigating and prosecuting Philippine government officials accused of crimes

Carrot measures

incentives to reduce corruption

Financial Secrecy Index

A ranking of countries most complicit in helping individuals hide their finances from the rule of law

Regional anti-corruption conventions

• Inter-American Convention against Corruption

• EU Convention against Corruption involving Public Officials

• African Union’s convention on preventing and combating Corruption

• ASEAN-Parties against Corruption

Financial Action Task Force (FATF)

Established in 1989 and tasked with combating money-laundering, then terrorism, then corruption.

UN Convention against Corruption (UNCAC)

The only legally binding international anti-corruption multilateral treaty.

Gradual Reform or Big Bang approach?

Fisman & Golden: Big Bang