Critical Review of
Governance and Corruption
by Susan Rose-Ackerman
1 Empirical Puzzle
Rose-Ackerman’s empirical puzzle in general terms is the study of the true cost of corruption on a nation and the underlying causes thereof. She remarks from the outset that while the world-wide bribery totals at least $1 trillion, the true cost of the economic distortions caused by corruption may very well be much higher. Rather than trying to estimate these economic distortions for the sake of knowing what those costs are, Rose-Ackerman assumes that the cause of corruption is a weak state apparatus and proposes 5 options to mitigate these costs and estimate the savings that could result. 2 Topic and Research Question
The topic of the Rose-Ackerman work is corruption in the state and means to lessen its prevalence. Rose-Ackerman sets out 5 potential reform proposals to achieve this goal. These options are: Improving accountability at the grassroots and local level of the state; Developing benchmarks and cost estimates for purposes of procurement; Tax implication and incentive-based reforms to maximize revenue collection; Streamlining of business regulations to lessen the opportunity for bribery and contact with the state; and Increasing transparency in international concession contracts and sourcing/chasing the money of politicians. Rose-Ackerman’s research question is: what are the impacts on corruption and economic savings of implementing the foregoing 5 corruption combatting reform proposals? 3 Dependent Variable
Rose-Ackerman uses actual projects implemented in various ‘corrupt’ countries as dependent variables. To study accountability at the grassroots reform, Rose-Ackerman looks at the efficient distribution of government money to fund local schools. Other dependent variables included the efficiency of distribution of external aid on various projects in Nepal, India, Bangladesh, and Indonesia for the various local projects designed to benefit the people,...
Please join StudyMode to read the full document