Understanding Corruption

Abstract

The chapter begins by considering the function of corruption in three types of societies: ‘traditional’, ‘patrimonial’ and ‘rational–legal’. Focusing on the highly variable nature of corruption, attention is then given to factors that facilitate corruption and factors that impede corruption. Frustration with government regulations can motivate many people to seek to engage in ‘rent seeking’ or obtaining monopoly control over an area of economic activity. Decision makers in government are also vulnerable to rent seeking in exploiting their control of an area of public demand, such as licences or approvals. The harmful effects of these types of practices are considered, especially in terms of the diminution of government services. Noting that different types of societies provide different opportunities for corruption, this chapter then examines the strategic role of key groups, in different types of societies and outlines specific opportunity factors in corruption, especially in transactions in government processes.