Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-x5gtn Total loading time: 0 Render date: 2024-05-10T01:33:30.829Z Has data issue: false hasContentIssue false

9 - Corrupt relational contracting

Published online by Cambridge University Press:  05 November 2009

Johann Graf Lambsdorff
Affiliation:
Universität Passau, Germany
Get access

Summary

Introduction

“Why are so many politicians lawyers? – because everyone employs lawyers, so the congressman's firm is a suitable avenue of compensation, whereas a physician would have to be given bribes rather than patronage.”

Stigler (1971)

Corruption, no doubt, is regarded as one of the modern evils. It is carried out by those with a criminal intention and motivated by greed. Yet, if this simple explanation were valid, why would we have to face in reality some disturbing counterexamples? Why, in particular, do we face a significant pattern where corrupt people tend to be involved in a variety of charitable institutions? Why do many bribers and bribees engage in an assortment of regular business transactions and political initiatives where they are regarded as trustworthy and honest partners? Our viewpoint of them as criminals contradicts their social engagement. The trust they enjoy in their regular relations sounds rather controversial, given their misuse of entrusted power.

A straightforward argument would, certainly, point out that corrupt actors must be entrusted with power before misusing it. There must be opportunities for corrupt misbehavior. These opportunities commonly arise where public office holders are in a monopoly position, have discretion in interpreting, applying, or changing the law, and lack accountability (Klitgaard 1988: 75).

Type
Chapter
Information
The Institutional Economics of Corruption and Reform
Theory, Evidence and Policy
, pp. 209 - 224
Publisher: Cambridge University Press
Print publication year: 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×