4 The mechanisms and dynamics of corruption
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James L. Newell
Abstract
This chapter considers the conditions that have to be met in order for corrupt transactions to be possible at all. It argues that a lack of trust undermines prospects for the successful conclusion of corrupt transactions: because each party knows that the other cannot denounce cheating to the authorities without incriminating himself, each is fearful of being cheated by the other and is therefore incentivised to hold back from making a corrupt agreement in the first place. And yet corrupt agreements are made and corrupt transactions are successfully carried out. This is because of the mechanisms and dynamics involved – which have the effect, precisely, of helping the parties to overcome the trust problem. The 'mechanisms' are the resources, social and personal, psychological and material, the parties bring to the transaction, the 'dynamics' the patterns of action and interaction, through which the transactions take place. Showing how mechanisms and dynamics enable the overcoming of each of the problems that each of the parties face at each stage of the corrupt transaction makes it possible to understand how corruption itself ‘works’ in practice.
Abstract
This chapter considers the conditions that have to be met in order for corrupt transactions to be possible at all. It argues that a lack of trust undermines prospects for the successful conclusion of corrupt transactions: because each party knows that the other cannot denounce cheating to the authorities without incriminating himself, each is fearful of being cheated by the other and is therefore incentivised to hold back from making a corrupt agreement in the first place. And yet corrupt agreements are made and corrupt transactions are successfully carried out. This is because of the mechanisms and dynamics involved – which have the effect, precisely, of helping the parties to overcome the trust problem. The 'mechanisms' are the resources, social and personal, psychological and material, the parties bring to the transaction, the 'dynamics' the patterns of action and interaction, through which the transactions take place. Showing how mechanisms and dynamics enable the overcoming of each of the problems that each of the parties face at each stage of the corrupt transaction makes it possible to understand how corruption itself ‘works’ in practice.
Chapters in this book
- Front matter i
- Contents v
- List of figures vi
- List of tables vii
- Preface viii
- List of abbreviations xi
- 1 Definitions of political corruption, and why study corruption 1
- 2 The growth, spread and measurement of corruption 21
- 3 The causes and explanations of political corruption 43
- 4 The mechanisms and dynamics of corruption 64
- 5 Political corruption and organised crime 82
- 6 Political corruption and scandal 103
- 7 Anti-corruption 124
- 8 Corruption in liberal democracies 143
- 9 Political corruption in Central and Eastern Europe 169
- 10 Political corruption in the developing and newly industrialised states 194
- Index 218
Chapters in this book
- Front matter i
- Contents v
- List of figures vi
- List of tables vii
- Preface viii
- List of abbreviations xi
- 1 Definitions of political corruption, and why study corruption 1
- 2 The growth, spread and measurement of corruption 21
- 3 The causes and explanations of political corruption 43
- 4 The mechanisms and dynamics of corruption 64
- 5 Political corruption and organised crime 82
- 6 Political corruption and scandal 103
- 7 Anti-corruption 124
- 8 Corruption in liberal democracies 143
- 9 Political corruption in Central and Eastern Europe 169
- 10 Political corruption in the developing and newly industrialised states 194
- Index 218