Friday 6 May 2016

(Assignment 1) Case studies on political corruption - Evi

For the past few years, Belgian newspapers could proudly point out the country's 15th place on the Corruption Perception Index of Transparency International. This means that Belgium ranks in the top 10% of least corrupted countries in the world. However, different dimensions of corruption have to be taken into account. Considering judicial independence for example, Belgium ranked only 29th out of 142 countries in 2012. Also, when bench-marked against the rest of Europe, its performance at best floats somewhere in the middle. 

A short overview on some existing issues:
On the federal level, corruption is not seen as a priority, notwithstanding recent cases of corruption within governmental bodies, police services and the judiciary. There is a gap between texts and practices and there is no systematic effort to collect information. But according to the report on corruption by the European Commission in 2014, the initiatives to promote integrity on the regional level are decent. However, there's a difference between the regions, with Wallonia limping behind.
The various administrative levels cause inconsistency in the policy against corruption.
Another consequence of the rather complicated institutional context in the country is that, due to many levels of government, the implicit ‘market for favors1’ increases. This can cause conflict of interests. However, not the institutional system, but the dominance of political parties is the biggest source of patronage and clientism. Not seldom is the appointment of government positions based on political criteria, instead of on a more meritocratic basis. Some institutions, especially the cabinets of the minister, also appear to be a place to provide jobs for political friends. 
The situation has been improved over time, though light forms of this type of political corruption continue to exist. Knowing people and being connected to political parties is still the best way to get things done. 

A recent case to illustrate. 
Electrawinds is a Belgian energy company for renewable energy. Despite serious financial problems in 2012, the Flemish and the Federal government invested 150 million Euros in the company. It received a total of 6 million subsidies in the period between 2006-2011, such as investment support and ecology premiums. The working of the company was supported by 'green power certificates' with an annual value of about 50 million. The large involvement of the government and especially the strong political ties with the minister for North Sea, caused a lot of controversy. The minister, Johan Van de Lanotte, was accused of conflict of interests by the public opinion, as he cleared the path for the company to execute projects, settled the practice of subsidies in the form of 'green power certificates’ and installed special tax arrangements to reduce competitive enterprises. At the same time, he was the chairman of Electrawinds and is suspected to have had indirect shares in the business, which would have provided him with large benefit.

The journalists who made this story come to light, were temporary expelled from the national editorial office and remarkably little information about the case was shown in the news. 

References
Cantillon, E. (2015) Rebel Initiative-Corruption in Today’s Belgium.
Maesschalck, J. & Van de Walle, S. (2006) Policy Failure and Corruption in Belgium: Is Federalism to Blame? West European Politics, Vol. 29, No. 5, 999 – 1017
Peters, G. (2006) Consociationalism, corruption and chocolate: Belgian exceptionalism, West European Politics, 29:5, 1079-1092.
Van den Eynde, W. & Pauwels, L. (2012) De keizer van Oostende. Van Halewyck, Gent

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