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The political economy of corruption in Brazil

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  • Silva, Marcos Fernandes da

Abstract

This article is the first part of a research on corruption in Brazil and it is theoretical. Despite this, it provides an economic interpretation of corruption using Brazil as a case study. The main objective of this research is to apply some microeconomic tools to understand the “big corruption”. However, I am going to show that corruption is not simply a kind of crime. Rather, it is an ordinary economic activity that arises in some institutional environments. Firstly, some corruption cases in Brazil will be described. This article is aimed at showing that democracy itself does not ensure control over corruption. Secondly, I am going to do a very brief survey of institutional changes and controls over corruption in some Western Societies in which I am going to argue that corruption, its control and its illegality depend on institutional evolution by streamlining the constitutional and institutional framework. Thirdly, I am going to explain how some economic models could be adopted for a better understanding of corruption. Finally, I will present a multiple-self model applied to the public agent (politician and bureaucrat) constrained by institutions and pay-off systems.

Suggested Citation

  • Silva, Marcos Fernandes da, 1999. "The political economy of corruption in Brazil," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 39(3), July.
    • Handle: RePEc:fgv:eaerae:v:39:y:1999:i:3:a:37829
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    Cited by:

    1. Maria Halter & Maria Arruda, 2009. "Inverting the Pyramid of Values? Trends in Less-Developed Countries," Journal of Business Ethics, Springer, vol. 90(3), pages 267-275, December.
    2. Bologna, Jamie, 2016. "The effect of informal employment and corruption on income levels in Brazil," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 657-695.
    3. Jamie Bologna & Amanda Ross, 2015. "Corruption and entrepreneurship: evidence from Brazilian municipalities," Public Choice, Springer, vol. 165(1), pages 59-77, October.
    4. Jamie Bologna & Amanda Ross, 2015. "Corruption and Entrepreneurship: Evidence from a Random Audit Program," Working Papers 15-05, Department of Economics, West Virginia University.
    5. Jamie Bologna, 2014. "The Effect of Informal Employment and Corruption on Income Levels in Brazil," Working Papers 14-26, Department of Economics, West Virginia University.
    6. Maria Halter & Maria Arruda & Ralph Halter, 2009. "Transparency to Reduce Corruption?," Journal of Business Ethics, Springer, vol. 84(3), pages 373-385, February.
    7. André Carraro & Ronald O. Hillbrecht, 2003. "Modelos Microeconômicos de Corrupção Burocrática e Seus Determinantes Econômicos," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31st Brazilian Economics Meeting] d36, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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