Institutionalized Corruption and the Kleptocratic State

Download or read book Institutionalized Corruption and the Kleptocratic State written by Mr.Joshua Charap and published by International Monetary Fund. This book was released on 1999-07-01 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper argues that corruption patterns are endogenous to political structures. Thus, corruption can be systemic and planned rather than decentralized and coincidental. In an economic system without law or property rights, a kleptocratic state may arise as a predatory hierarchy from a state of pure anarchy. A dictator minimizes the probability of a palace revolution by creating a system of patronage and loyalty through corrupt bureaucracy. Competitive corruption patterns are associated with anarchy and weak dictators, while strong dictators implement a system of monopolistic corruption. Efforts at public sector reform may meet resistance in countries featuring such systemic corruption.