Friday 6 May 2016

(Assignment 3) Sources of Corruption in the European Union- Carolyn Warner - Rushabh Menon

1.     Under the EU, exposure to competitive pressures and shared rules and regulations, it was thought, would make firms and businesses less corrupt.

2.     Corruption in the EU exists and persists because competitive pressures lead some firms to seek an edge against competition through illegal means.

3.     The legal and political economist views, emphasising human agency and incentives, imply that the EU’s fraud problem is due to a corruptible bureaucracy, the existence of programmes that are vulnerable to fraud by third parties and too few checks and balances to counter administrative monopolies.

4.     The political and legal solutions fail to take into account the peculiar structure of international organisations, including the possible differences in attitudes towards corruption that may affect member countries’ institutional responses to corruption and its peculiar principal/agent structure: we have the conundrum that the member- states, as principals, have delegated to themselves the collection and distribution of an enormous percent age of the EU’s budget and have also delegated to themselves the operation of most of its regulatory structure.

5.     The ‘micro- motives’ of individuals, firms, political parties and also governments still could make it rational to engage in corrupt practices.

6.     What may appear to be fraud or corruption is merely a form of incompetence and a reflection of inadequate resources: the inability of officials and businesses to apply EU regulations because of their extreme complexity, their contradictions, the lack of staff and the competing jurisdictions to which they are subject.

7.     While privatisation helps countries meet the EU’s competition and budget requirements, it instead often is a source of corruption, in which competition is restricted to a politically chosen few who are willing to reimburse the government, illegally, for keeping real competition and competitors at bay.

Reference
Warner, Carolyn: “Sources of Corruption in the European Union” in Paul M. Heywood (ed), Routledge Handbook of Political Corruption, (New York: Routledge, 2015), pp. 121-130


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