Saturday 7 May 2016

(Assignment 4) Corruption in Spain Revisited - Krupa Maria Varghese

The analysis of corruption in Spain done as a part of our first course assignment introduced me to the many ways by which corruption is interwoven with the daily activities of a society. The three cases that were looked at were the Noos case where Princess Cristina and her husband were found guilty of misappropriation of funds, the Gurtel corruption case which laid bare the syndicate between businesses and political parties and finally, the Malaya case which once again emphasized the persistent nature of this nexus. While the initial analysis looked at the corruption cases from a sociological lens and therefore identified sociocultural reasons as well as ‘revolving door’ strategies as the cause for this corruption. Spain exhibited a classic case of corruption as seen in Elite Cartels.
An exposure to the many theoretical aspects of corruption have since, contributed greatly to being able to make a more nuanced analysis of the situation of corruption. Applying such an analysis to Spain reveals some interesting results. Although arguments have been proposed which believe that corruption can in fact have beneficial impact on the economy, using the frameworks provided in the text “When is Corruption Harmful” by Susan Rose-Ackerman we see that in the case of Spain corruption has not resulted in any potential benefits. This is the first important feature of the cases of corruption in Spain. The form of crony capitalism in Spain only created a system where there was concentration of wealth in the hands of a few, money laundering, tax evasion and related activities which were harmful to the economy. Thus, the short-term and long-term impacts of corruption in the case of Spain’s economy were negative.

One of the most key aspects of the corruption cases identified is the factor of economic corruption. Using the ‘principle-agent’ theory we see that there is a dissonance in what the principal’s goals are and in what the public’s interests are. According to the economic definition of corruption, corruption occurs when an agent betrays the principal’s interests in pursuit of his own. In the case of the Spain, there was a clear demarcation between the interests of the people and the interests of those in power. The only people benefitting from the actions of the Princess, or of those political leaders who sold their votes for cash were the leaders themselves and the businesses indulging in the corrupt practices and this nexus is what makes the cases of corruption a clear case of crony capitalism.

Secondly, the first assignment also made note of the fact that a research showed that 60 percent of those polled in a survey by Sociological Research Centre believed that corruption is just a “part of human nature” and more than one-third believe that it is “part of Spanish culture”. Such an attitude seems to directly fit into the Aristotle’s and Machiavelli’s conception of political corruption as a systemic decay, necessarily infecting all aspects of individual and community life. Additionally such an attitude also reflects the breakdown of social trust in a society. A majority of the society believes that the natural behaviour to exhibit is corruption; social trust cannot operate in such an environment.  
Having seen the state of moral decay in Spain, it becomes imperative to arrive at solutions to the problem.  Here, we can draw on the work of Zephyr Teachout. Although Teachout’s work focuses on corruption in America, her conception of ‘anticorruption principle’ is applicable across the board. She places the onus on citizens to revive their expectations of public officials. According to her, this is the only real way to revive democracy that is faltering under corruption. This is applicable perfectly in the case of Spain. We see a start towards this demand for accountability in the “indignant” protest movement, which camped out in Madrid’s central square which changed the nation’s viewpoint on corruption. The indignation of the people also saw the rise of two new anti-corruption parties in Spanish politics which had previously been dominated by only two major parties[1]. Thus, the way forward for Spain is to increase demands for accountability from those in power in order to ensure that political and economic processes take place in a more transparent manner.



[1] http://www.bbc.com/news/world-europe-31852713

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