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Myths and Realities of Governance and Corruption

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  • Kaufmann, Daniel

Abstract

A number of popular notions and outright myths on governance and corruption are addressed in this chapter. We distinguish clearly between governance and anti-corruption, while probing the links between both notions. In so doing we challenge the conventional definition of corruption as being too narrow, legalistic and unduly focused on the public sector, while underplaying the role of the private sector. We then challenge the notion that governance and corruption cannot be measured, showcasing the latest worldwide governance indicators, measuring six dimensions of governance and cover over 200 countries, based on multiple sources, including the EOS. Thanks to these governance indicators and related datasets, it has been possible to study the extent to which governance and anticorruption matters. Consistent with the adage that 'sunlight is the best disinfectant', the potential gains of embarking on a transparency reform strategy is given particular prominence in this chapter, and a detailed 12-point 'scorecard' for countries to rate themselves in terms of the implementation of concrete transparency measures is presented. The chapter then concludes with a call for a global compact on governance and anti-corruption, where the G-8 and other rich countries, the multinationals, IFIs, civil society and the government leadership in the emerging economies share responsibility in making concerted progress.

Suggested Citation

  • Kaufmann, Daniel, 2005. "Myths and Realities of Governance and Corruption," MPRA Paper 8089, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:8089
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    File URL: https://mpra.ub.uni-muenchen.de/8089/1/MPRA_paper_8089.pdf
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    References listed on IDEAS

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    Cited by:

    1. Anna Kochanova, 2012. "The Impact of Bribery on Firm Performance: Evidence from Central and Eastern European Countries," CERGE-EI Working Papers wp473, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    2. Everett, Jeff & Neu, Dean & Rahaman, Abu Shiraz, 2007. "Accounting and the global fight against corruption," Accounting, Organizations and Society, Elsevier, vol. 32(6), pages 513-542, August.
    3. Aaronson, Susan & Abouharb, M. Rodwan, 2011. "Does the WTO Help Member States Clean Up?," Papers 268, World Trade Institute.
    4. Riccardo Pelizzo, 2018. "Democracy and Governance," Working Papers 18/004, African Governance and Development Institute..
    5. Hanousek, Jan & Kochanova, Anna, 2015. "Bribery Environment and Firm Performance: Evidence from Central and Eastern European Countries," CEPR Discussion Papers 10499, C.E.P.R. Discussion Papers.
    6. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    7. Shonchoy, Abu S., 2010. "Determinants of government consumption expenditure in developing countries : a panel data analysis," IDE Discussion Papers 266, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Knack, Stephen, 2006. "Measuring corruption in Eastern Europe and Central Asia : a critique of the cross-country indicators," Policy Research Working Paper Series 3968, The World Bank.
    9. Sahaym, Arvin & Nam, Daeil, 2013. "International diversification of the emerging-market enterprises: A multi-level examination," International Business Review, Elsevier, vol. 22(2), pages 421-436.
    10. Ken Miyajima, 2007. "What Do We Know About Namibia’s Competitiveness?," IMF Working Papers 07/191, International Monetary Fund.
    11. Luminita Maria Craciun, 2010. "Governance or Governing – the Missing Link?," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 2(2), pages 69-86, June.
    12. Utz Weitzel & Sjors Berns, 2006. "Cross-border takeovers, corruption, and related aspects of governance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 786-806, November.
    13. repec:taf:cijwxx:v:33:y:2017:i:6:p:890-906 is not listed on IDEAS
    14. Christine Siew-Pyng Chong & Suresh Narayanan, 2017. "The Size and Costs of Bribes in Malaysia: An Analysis Based on Convicted Bribe Givers," Asian Economic Papers, MIT Press, vol. 16(1), pages 66-84, Winter/Sp.
    15. van Veldhuizen, R., 2013. "The influence of wages on public officials’ corruptibility: A laboratory investigation," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 341-356.
    16. Talat, 2006. "Trends in Absolute Poverty and Governance in Pakistan: 1998-99 and 2004-05," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 777-793.
    17. Nam, Dae-il & Parboteeah, K. Praveen & Cullen, John B. & Johnson, Jean L., 2014. "Cross-national differences in firms undertaking innovation initiatives: An application of institutional anomie theory," Journal of International Management, Elsevier, vol. 20(2), pages 91-106.
    18. Francesca Recanatini, 2011. "Anti-Corruption Authorities: An Effective Tool to Curb Corruption?," Chapters,in: International Handbook on the Economics of Corruption, Volume Two, chapter 19 Edward Elgar Publishing.

    More about this item

    Keywords

    corruption; transparency; governance;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • H00 - Public Economics - - General - - - General
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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