- Select a corruption case. This can be a case from any country and any year, you can also study cases that involve several countries. Crucially, the case needs to involve public officials, it cannot be just a private case of corruption. Describe it briefly but
provide key information, practice concise writing. You will need as much information as you can gather to analyze the case. If you have chosen an ongoing investigation, be sure to check for updates to include the latest information.
You are free to use section subheadings in the essay to address each section below.
- What conceptualization of corruption best fits the case? [breaking of the rules, against the public interest, both?] Include the definition that best fits the case, properly reference it, and justify your choice in a few sentences. [be sure to critically engage with both the case information and the theoretical material]
- Is this a case of bureaucratic or political corruption? Provide the definition that best fits the case, properly reference it, and justify your choice in a few sentences. [be sure to critically engage with both the case information and the theoretical material]
- Describe the political [Democracy/Autocracy/Hybrid] and economic [Income, inequality, etc.] context of the country in which the case took place. How could have the context provided fertile ground for this case to take place?
- Name and analyze the a few of the explicit short and long-term economic and political consequences. You must address BOTH economic and political, but you can choose to pay particular attention/emphasis on one. Here again, your job is to describe and analyze. Engage and reference reading material from the module; this is also a good opportunity to include outside sources.
- Use the three stages of making corrupt deals to analyze the case. Properly describe and analyze each stage in your corruption case. If there is not enough information, make informed guesses based on existing evidence.
- In terms of measurement, what current measure would have best captured this case? In a few sentences, explain why. If no measure would have captured this case, also explain why and briefly provide a possible alternative measure. Be concise.
- How corruption cases like these could be potentially prevented in the future? Make a brief, but critical suggestion for an anti-corruption policy.
- Based on all the aspects you have analyzed above, provide a thoughtful conclusion reflecting on what you have learned about corruption.
Two of the required readings the other three will need to be found elsewhere:
-Johnston, Michael. 2005. Syndromes of Corruption: Wealth, Power and Democracy. Cambridge: Cambridge University Press.
-Lambsdorff, Johann Graf. 2007. The Institutional Economics of Corruption and Reform: Theory, Evidence and Policy. Cambridge: Cambridge University Press.
Corruption Case Analysis: The 1MDB Scandal in Malaysia
Case Overview
The 1MDB scandal in Malaysia involved the misappropriation of billions of dollars from the state fund, 1Malaysia Development Berhad (1MDB), between 2009 and 2014. Public officials, including former Prime Minister Najib Razak, were implicated in diverting funds meant for economic development into personal bank accounts and luxury assets.
Conceptualization of Corruption
The best conceptualization for the 1MDB case is corruption as both a breaking of rules and against the public interest. The misallocation of public funds for personal gain highlights a violation of ethical norms and betrayal of public trust, harming the welfare of Malaysian citizens (Johnston, 2005).
Bureaucratic or Political Corruption
The 1MDB scandal represents a case of political corruption, where elected officials abuse their power for personal enrichment. The involvement of high-ranking politicians and government officials in diverting public funds signifies a systemic issue within the political realm (Lambsdorff, 2007).
Political and Economic Context
Malaysia operates as a hybrid regime with elements of democracy and autocracy. The country's economic landscape is characterized by income inequality, with a significant wealth gap between the elite and the general population. This context provided fertile ground for corruption to thrive, as lack of transparency and accountability enabled officials to exploit loopholes for personal gain.
Consequences
Short-term economic consequences of the 1MDB scandal include loss of investor confidence, currency devaluation, and increased borrowing costs. Politically, it led to public outrage, erosion of trust in government institutions, and a shift in power dynamics. Long-term effects include damage to Malaysia's reputation, economic slowdown, and institutional reforms to address corruption.
Three Stages of Corrupt Deals
1. Initiation: High-level officials initiated the scheme to siphon funds from 1MDB for personal use.
2. Negotiation: Deals were made behind closed doors to facilitate the transfer of funds through complex financial transactions.
3. Implementation: The embezzled funds were used to purchase luxury real estate, artwork, and finance extravagant lifestyles.
Measurement
The Corruption Perceptions Index (CPI) by Transparency International would best capture the scale and impact of the 1MDB scandal due to its focus on public sector corruption perception. The index provides a comparative analysis of corruption levels globally, reflecting Malaysia's ranking decline during the scandal period.
Prevention Strategies
To prevent future corruption cases, Malaysia should implement robust anti-corruption policies, including enhancing transparency in financial transactions, strengthening oversight mechanisms, and promoting a culture of accountability among public officials. Whistleblower protection laws and independent anti-corruption agencies are crucial for deterring corrupt practices.
Conclusion
The analysis of the 1MDB scandal underscores the detrimental effects of political corruption on economic stability and democratic governance. By understanding the contextual factors, consequences, and stages of corrupt deals, we can develop proactive measures to combat corruption and uphold integrity in public service.