Thursday, June 18, 2015

A Literature Review of Corruption

                Why is it that some countries in the Middle East have spent significantly more money on their educational systems in last two decades but have not seen significant improvement in student performance?[1]   David Chapman, in an article titled “Education Quality in the Middle East,” claims that a lack of economic resources is often cited by political scientists as the major reason why developing countries struggle to improve their schools.  David Waldner, in his book State Building and Late Development, would claim that structural problems within the state are the reason why there is a lack of tax revenue to spend on institutions associated with human development like education or health care.[2]  However, the lack of resources alone can’t fully explain the problem in this case since increased spending did not lead to improved governance.   Political scientists like David Chapman, Stephen Heyneman, Kathryn H. Anderson, Nazym Nuraliyeva, and others believe that corruption needs to be taken seriously as an independent variable to explain the disappointing lack of development in educational systems throughout the Middle East.[3]     Corruption negatively affects the performance of administrators, teachers, and students.  Although very few in the field would disagree with this sentiment, there are major debates over how to define, measure, and reduce corruption with the goal of improving governance in the developing world.   Without a consensus on these questions, it will be very difficult to assess the impact of corruption on educational systems. 
                The first problem is defining corruption.  Almost all political scientists seem to agree that corruption is the misuse of public office for personal gain.[4]  However, there are some disagreements over what constitutes the misuse of political power.  One type of corruption, grand corruption, involves political elites manipulating the writing and enforcement of laws for a client in exchange for a bribe or a favor.   However, it is often difficult to define in certain instances when a politician is engaging in this behavior.  If a politician urges the public and his fellow politicians to go to war because it is necessary for the country’s security, but at the same time he is receiving legal campaign finance contributions from an arms company, is he engaging in grand corruption?  Maybe the war is necessary and the campaign financing has nothing to do with the decision making.  The opposite could also be true.  We also have problems defining petty corruption, which is when bureaucrats accept small bribes or some other form of compensation in the exchange for special favors.  A teacher that accepts a bribe from a student for a better grade or an administrator that misuses public funds meant for the school for personal profit is engaged in petty corruption.  In certain cases, petty corruption might not be a misuse of power.  If there are irrational laws and regulations on the books that make it impossible for a businessman to operate legally, bribes might be necessary to cut through red tape.  Also, many bureaucrats depend on small tips because of very low salaries.  All political scientists seem to agree that the growth of petty corruption will cause long term problems in governance, but bureaucrats and private citizens that often engage in this behavior are not doing so for personal benefit but because it is the only way to get something done.[5]   Furthermore, although many political scientists that specialize in studying corruption like Arvind Jain claim that petty corruption never increases economic growth in the short term, others like Bertram Spector believes that it can in certain cases.[6]  There is no clear consensus.
Measuring corruption is an even more contentious issue.   There are multiple methods that are currently in use to measure the problem by institutions like Transparency International, the World Bank, Business International Corporation, Political Risk Services, World Competitiveness Report, and Political and Economic Risks Consultancy.[7]  They all have slightly different methods for defining and quantifying it, but there does seem to be some common trends.  They all tend to rely on multiple surveys conducted in each country that are given to politicians, businessmen, non-governmental organizations, and average citizens asking them about their perceptions of corruption.  Surveys given to specific experts will also ask questions about a country’s laws, regulatory institutions, level of government transparency, degree of judiciary independence, efficacy of law enforcement, and many other institutional factors that can affect the level of corruption.  Furthermore, average citizens are asked about their perceptions of corruption, how often they pay bribes, and whether or not they feel their country has problems dealing with this issue.  There are several complications with these surveys.  For one, they all ask slightly different questions, they are distributed in a different manner, and certain factors are weighted heavier than others when the data is aggregated.  This will produce slightly different results that will change the rankings.   It is a credit to these surveys that despite their diversity, the great majority of countries only have a slightly different ranking depending on the method used.  However, we need to keep in mind that these institutions are only measuring perceptions of corruption and evaluating the institutions that are associated with the problem; they are not directly studying actual incidences of corruption.  Furthermore, most of these surveys don’t deal with corruption in educational institutions.  Understandably, the greatest focus in placed on regulatory institutions, the police, the judiciary, and legislatures because without the rule of law, corruption will become prevalent in all institutions, educational or otherwise.   There are a few political scientists who have tried to study the issue of corruption in education, but the data available is comparatively small.[8]
Lastly, the debate on how to reduce corruption has evolved throughout the last three decades.  According to Bertram Spector, there have been three different phases since 1993 in terms of the popular methods used to deal with corruption.[9]   In phase number one between 1993 and 1999, the main goal of international organizations that sought reform was to improve the methods used to measure it; evaluate the financial costs within each country; and to present the data in conferences to the political elites of each country with the hope that they would take action.  This light form of intervention produced almost no results in terms of encouraging countries to make reforms or reducing the level of corruption.  Without any incentives or programs for how to deal with it, politicians ignored the rhetoric.  In phase two throughout the 2000’s, international organizations shifted their strategy, opting to use a mixture of financial incentives and public relations campaigns to push governments to make reforms and change the culture of countries throughout the globe.  This strategy had better results than the first phase, but the level of improvement was still disappointing.  In phase three, which began only a few years ago, international organizations are now beginning to see corruption in a more holistic manner.  Recent studies have shown that non-institutional factors like political stability and economic development are correlated with higher levels of corruption.   Whereas some political scientists like Yadeeva Vineeta and Janos Kornai focus more on institutions, Bertram and others show that levels of corruption are intertwined with other general political, economic, and social problems.[10]  To reduce corruption, other societal issues can’t be ignored.   Furthermore, this third wave of corruption reform has emphasized different reform strategies for different types of democratic and authoritarian regimes.  A program that works in one country may not work in another. 
As this debate evolves, it is important that we continue to refine our definitions, measurement tools, and reform programs to deal with corruption.  We will never have a perfect measurement of corruption or total consensus on this issue, but as we improve our understanding of this phenomenon, governments and international organizations can craft better programs to combat the problem.  Furthermore, we will gain a better understanding of how corruption affects educational institutions. 



Work Cited Page
1. Ahmad, Eatzaz, Muhammad Aman Ullah, and Muhammad Irfanullah Arfeen.  "Does Corruption Affect Economic Growth," Latin American Journal of Economics, Vol. 49, No. 2, November, 2012: pg 277-305. 

2.  Chapman, David.  “Education Quality in the Middle East,” International Review of Education, Vol. 55, No. 4.  July, 2009.

3. Heyneman, Stephen, Kathryn H. Anderson, and Nazym Nuraliyeva.  "The Cost of Corruption in Higher Education," Comparative Education Review, Vol. 52, No. 1, February, 2008.

4.  “Human Development Report, 2013: The Rise of the South, Human Progress in a Diverse World,” United Nations Development Program: New York, 2013. 

5.  “Is Transparency International’s Measure of Corruption Still Valid?,” www.theguardian.com, December 3rd, 2013.

6. Jain, Arvind.  “Corruption: A Review,” Journal of Economic Surveys, Vol. 15, No.1, 2001: pg 71-121.

7. Kornai, Janos, Laszlo Matyas, and Gerard Roland, eds.  Corruption, Development, and Institutional Design.  Palgrave Macmillan: New York, 2009.

8. Lambsdorf, Graf.  The Institutional Economics of Corruption and Reform.  Cambridge University Press: Great Britain, 2008.

9. “Organization for Economic Cooperation and Development: Key Findings, 2000-2012,” www.oecd.org, September, 2014. 

10. Spector, Bertram.  Detecting Corruption In Developing Countries: Identifying Causes/Strategies for Action.  Kumarian Press: United States, 2012.

11. Stewart, William.  “Is PISA Fundamentally Flawed?,” www.tes.co.uk, September 16th, 2014.
12. “Transparency International: Global Perceptions Index 2013,” http://www.transparency.org/cpi2013/results, 2014. 

13. Waldner, David.  State Building and Late Development.  Cornell University Press: New York, 1999.
14. Yadav, Vineeta.  Political Parties, Business Groups, and Corruption in Developing Countries.  Oxford University Press: Oxford, 2011.





[1] Chapman, David.  “Education Quality in the Middle East,” International Review of Education, Vol. 55, No. 4.  July, 2009.
[2] Waldner, David.  State Building and Late Development.  Cornell University Press: New York, 1999.
[3] Heyneman, Stephen, Kathryn H. Anderson, and Nazym Nuraliyeva.  "The Cost of Corruption in Higher Education," Comparative Education Review, Vol. 52, No. 1, February, 2008.
[4] Jain, Arvind.  “Corruption: A Review,” Journal of Economic Surveys, Vol. 15, No.1, 2001: pg 71-121.
[5] Lambsdorf, Graf.  The Institutional Economics of Corruption and Reform.  Cambridge University Press: Great Britain, 2008.
[6] Spector, Bertram.  Detecting Corruption In Developing Countries: Identifying Causes/Strategies for Action.  Kumarian Press: United States, 2012.
[7] “Transparency International: Global Perceptions Index 2013,” http://www.transparency.org/cpi2013/results, 2014, “Human Development Report, 2013: The Rise of the South, Human Progress in a Diverse World,” United Nations Development Program: New York, 2013, and “Is Transparency International’s Measure of Corruption Still Valid?,” www.theguardian.com, December 3rd, 2013.
[8] Heyneman, Stephen, Kathryn H. Anderson, and Nazym Nuraliyeva.  "The Cost of Corruption in Higher Education," Comparative Education Review, Vol. 52, No. 1, February, 2008.
[9] Bertrom, Ibid. 
[10] Yadav, Vineeta.  Political Parties, Business Groups, and Corruption in Developing Countries.  Oxford University Press: Oxford, 2011.

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