Corruption as a Last Resort: Adapting to the Market in Central Asia

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Cornell University Press, Oct 30, 2014 - Business & Economics - 200 pages

Why do ordinary people engage in corruption? In Corruption as a Last Resort, Kelly M. McMann contends that bureaucrats, poverty, and culture do not force individuals in Central Asia to pay bribes, use connections, or sell political support. Rather, corruption is a last resort when relatives, groups in society, the market, and formal government programs cannot provide essential goods and services. Using evidence from her long-term research in Kazakhstan and Kyrgyzstan, McMann shows that Islamic institutions, secular charities, entrepreneurs, and banks cannot provide the jobs and credit people need. This drives individuals to illicitly seek employment and loans from government officials.

A leading cause of this resource scarcity is market reform, as demonstrated by McMann’s analysis of these countries as well as of Uzbekistan and global data. Market reform without supporting institutions, such as credit registries and antimonopoly measures, limits the resources available from the market and societal groups. McMann finds that in these circumstances only those individuals who have affluent relatives have an alternative to corruption. By focusing on ordinary people, McMann offers a new understanding of corruption. Previously, our knowledge was largely restricted to government officials’ role in illicit exchanges. From her novel approach comes a useful policy insight: supplying ordinary people with alternatives to corruption is a fundamental and important anticorruption strategy.

 

Contents

1 An Absence of Alternatives A New Framework for Understanding Corruption
1
2 Alternatives to Corruption and the Effect of Market Reform The Arguments and Their Theoretical Implications
20
3 Bribery Favoritism and Clientelism Evidence from Kazakhstan and Kyrgyzstan
35
4 Market Actors as an Unrealized Alternative The Effect of Market Reforms
57
5 Islamic Institutions and Secular Charities Obstacles to Providing Substitute Resources
103
6 Families The Uneven Effect of Market Reforms
136
7 Reducing Corruption Policy Recommendations
159
Appendix Statistical Analysis
171
Index
177
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About the author (2014)

Kelly M. McMann is Associate Professor of Political Science at Case Western Reserve University.