Is Corruption Lower in Democracies?

Is Corruption Lower in Democracies?

Corruption exists in all societies and some would argue that you can minimize it, but
never eliminate it anywhere. Despite this, a democratic system of government has some
built-in mechanisms that keep corruption in check. Democracy is defined by USIP as “a
state or community in which all members of society partake in a free and fair electoral
process that determines government leadership, have access to power through their
representatives, and enjoy universally recognized freedoms and liberties.” It is generally
accepted that strong democracies have lower levels of corruption, largely because those
who are ruled give the government the legitimacy to govern and therefore the citizens
can hold the government to greater transparency in its operations.
However, even when a state has free and fair elections and calls itself a democracy, it
may still be emerging from conflict, transitioning from authoritarian rule, or be guided by
loyalties to one’s own clan, tribe, or interest group. A state may also have a political
culture that lends itself to corrupt practices. In Russia, for example, there is a preference
for cultivating access to influential people rather than adhering to formal and legalistic
procedures and norms. Such a political culture continues to proliferate corruption and,
as countries like Russia have transitioned to market economies, corruption has
particularly benefited the well-connected and newly rich.14
In states transitioning from one form of governance to another, corruption may actually
increase. “When authoritarian control is challenged and destroyed through economic
liberalizations and political democratizations, but not yet replaced by democratic checks
and balances and by legitimate and accountable institutions, the level of corruption will
increase and reach a peak before it is reduced with increasing levels of democratic

governance,” suggests a paper on corruption prepared in 2000 for the Norwegian
Agency for Development Co-operation.15 Many countries in the former Soviet Bloc, for
example, have transitioned from Communism to multiparty democracies over the past 20
years, but corruption is still rife in many. In Bulgaria, for example, a variety of legal
reforms have been put in place to combat corruption. However, corruption remains
prevalent in the judiciary, and the European Union has recently suspended funding for
apparent fraud and misuse of funds.
A democratic system does not guarantee a society that is free from corruption. Petty
corruption tends to be far less prevalent in strong democratic systems with more open
systems of governance, but one can still find plenty of examples of political corruption at
high levels or of money influencing politics. These include scandals involving
questionable party financing, the selling of political influence to the biggest donors, and
politicians using connections to line their own pockets. Campaign finance reform
continues to be a subject of much debate in the United States, where the electorate
remains concerned about moneyed special interests having undue influence over
legislators.
Another example from the West was the high-level corruption of political parties in Italy,
which led to a number of scandals in the 1990s. The political party in power made sure
that its members dominated government positions. Its members in key positions
awarded government contracts to businesses for a price of a bribe, then, gave the
money to the party. Among other illicit activities, funds for large infrastructure projects
were funneled into party coffers.16 Transparency International’s Corruption Index 2008
shows that many of the least corrupt countries are democracies. However, countries with
less democratic, more authoritarian systems of governance, such as Singapore, United
Arab Emirates, and Bahrain are also some of the least corrupt.
Also, democracy is not a panacea for problems related to corruption and conflict. A rule
by majority can neglect the needs and desires of minorities, marginalize them, and thus
contribute to the rise of separatist movements and even violent rebellions, even with
many political parties. And, it takes a long time to establish a solid democracy in
societies transitioning from conflict to peace.