Links Between Corruption and Conflict

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1 | Page What impact does corruption have on conflict? Have international attempts to fight corruption in post-conflict settings been successful? By Dimitar Panchev 1 1 © 2015 Dimitar Panchev, e-mail : [email protected] Terms and Conditions for the use of this article: This article may be used for research and private study purposes. Any considerable or methodical reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is definitively prohibited. The publisher does not give any warranty express or implied or make any representation that the contents will be complete or accurate or up-to- date. The accuracy of any information should be independently verified with primary sources. The publisher shall not be liable for any loss, actions, claims, proceedings, demand, or costs or damages whatsoever or howsoever caused arising directly or indirectly in connection with or arising out of the use of this material.

Transcript of Links Between Corruption and Conflict

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What impact does corruption have on conflict? Have international

attempts to fight corruption in post-conflict settings been successful?

By Dimitar Panchev1

1 © 2015 Dimitar Panchev, e-mail : [email protected]

Terms and Conditions for the use of this article: This article may be

used for research and private study purposes. Any considerable or

methodical reproduction, redistribution, reselling, loan, sub-licensing,

systematic supply, or distribution in any form to anyone is definitively

prohibited.

The publisher does not give any warranty express or implied or make any

representation that the contents will be complete or accurate or up-to-

date. The accuracy of any information should be independently verified

with primary sources. The publisher shall not be liable for any loss,

actions, claims, proceedings, demand, or costs or damages whatsoever

or howsoever caused arising directly or indirectly in connection with or

arising out of the use of this material.

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Abstract

In the past two decades, the problem of corruption has attracted considerable attention and

has had a significant influence on how intervention strategies in post-war countries are

devised. The aim of this paper will be to outline some of the conceptual problems associated

with defining corruption, its links to conflicts and the impact which international efforts have

had on fighting corruption in post-war societies.

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Contents

Abstract ............................................................................................................. 2

Contents ............................................................................................................. 3

Introduction ....................................................................................................... 4

Problems associated with corruption.................................................................. 4

The impact of corruption on conflict and the peace-building process ............... 5

The effectiveness of intervention ...................................................................... 7

Conclusion ......................................................................................................... 8

Bibliography ...................................................................................................... 9

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What impact does corruption have on conflict? Have international attempts to fight

corruption in post-conflict settings been successful?

Introduction

In the past two decades, the problem of corruption has attracted considerable attention and

has had a significant influence on how intervention strategies in post-war countries are

devised. The aim of this paper will be to provide an analysis of the complex relationship

which exists between corruption, conflict and the subsequent peace-building process in

countries emerging from conflicts.

To begin with, there are several conceptual problems associated with how corruption is

defined and understood – even in countries, where no violent conflicts have taken place, it

could require an enormous endeavour in order to pin point exactly what corruption should

stand for (Heidenheimer and Johnston, 2002: 161). Therefore, a good starting point would be

the most widely used definition of corruption: ‘Behaviour which deviates from the formal

duties of a public role because of private regarding (personal, close family, private clique)

pecuniary or status gains’ (Nye, 1967: 419).

However, when this definition is applied to countries emerging from war, two significant

problems arise (Harvey, 2012, online). To begin with, the above mentioned definition

constraints the appearance of corruption only to a particular segment of the population,

namely those individuals who occupy a position within a public office, thus failing to

acknowledge that corruption could in fact occur even when such a role is non-existent (Philp,

2008: 311). At the same time, however, this definition is also problematic because it fails to

draw a boundary between corruption and similar phenomena, thereby stretching the concept

and making it too broad (Harvey, 2012, online).

Because of these conceptual problems, for the purposes of the present study an alternative

definition of corruption will be employed: ‘the abuse of entrusted power for private gain’

(Transparency International, 2009: p. x).

Problems associated with corruption

Over the past two decades, increasing efforts on behalf of the international community, many

governments, and civil society organizations have focused attention on the persistent problem

of corruption in transitional economies, as well as in developing and industrialized states,

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blaming it for slowed economic growth and deterioration in the quality of public service

delivery (Spector, 2008c: 1). Although many have struggled to design effective anti-

corruption strategies, without a doubt, the once so-called ‘conspiracy of silence’ (Andreski,

1978:347, in Leenders, 2012: 6) has been transformed. The recent interest academic interest

in corruption evolved out of concerns that in many less developed countries, efforts to boost

‘modernization’ or ‘development’ – re-packaged and made pertinent by the World Bank and

the IMF’s ‘structural adjustment programme’ – had failed to deliver (Leenders, 2012: 6).

Against this background, it has increasingly been asserted that corruption raises serious

obstacles to economic growth and associated ‘good governance’, and that the phenomenon

constitutes a drain on emerging economies (Lambsdorff, 2005: 8).

In addition to that, it has been documented that in the cases of developing countries where

corruption practices have been noted, this has discouraged foreign investment, thereby

slowing down and even inhibiting economic growth (ibid.: 4-7). Parallel to that, the existence

of corruption practices has been positively associated with the flourishing of shadow

economies and grey markets, thus depraving the state of any revenue collected in the form of

taxes (Spector, 2008b: 5). Next, the widespread use of corruption practices not only

undermines any efforts to reduce poverty and social exclusion, but also leads to the

disproportionate accumulation of wealth in certain social segments (Li et al. 2000: 155). In

addition, corrupt governments lack political legitimacy (Anderson and Tverdova, 2003: 91)

and undermine the rule of law, thus leading to lack of confidence on behalf of the general

public, which in itself can facilitate violence. Having outlined some of the problems

associated with corruption in post-conflict states, the next section of this paper will draw

attention to the relationship which exists between corruption and conflicts.

The impact of corruption on conflict and the peace-building process

Boucher et al. (2007: 4-5) notes that there exists a consensus as to the links between

corruption and conflict; the general measures needed to control corruption and the general

measures needed to control corruption in post-conflict settings. Here, it should be noted that

corruption in some cases could potentially have a positive impact in the early stages of post-

war transition and contribute to the peacekeeping process. But as Le Billon warns,

‘corruption always has debilitating long-term effects and thus cannot play a part in building

sustainable peace’ (2003: 8-9). Therefore it is of crucial importance that a comprehensive

anti-corruption strategy is devised and implemented in the early stages of the transition

towards more stable governance.

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In countries emerging from war conflicts, where legitimacy and the bureaucratic apparatus is

yet to be restored, ‘public office’ is usually tenuous or non-existent, and often contested

(Harvey, 2012, online). For this reason, whilst restoring peace and security, one also creates

an environment in which corruption practices could flourish, because it is the legal

framework of the new regime that will set the boundaries for deviant conduct. When we

attempt to build peace, we create standards and rules that, once in place, can be broken

(Philp, 2008: 322). Having this in mind, it becomes easier to comprehend the

unprecedentedly high levels of corruption in post-conflict settings.

Whilst corruption practices are placed in context, it becomes necessary to acknowledge and

recognise that any successful prevention strategy should be tailored so as the address the

needs of the country in question, rather than being based on common factors and elements

which have been documented elsewhere. One pattern that cannot be easily be ignored,

however, it that corruption practices are much more common in post-conflict settings rather

than in developing countries in general, the reason for this being the variety of opportunities

which the former seems to present (Spector, 2008a; 9). In addition to that, there appear to be

several factors associated with corruption in countries, which are emerging from war:

insecurity, deprivation, presence of non-governmental organisations, as well as the amount of

aid allocated by the international community (both financial and in the form of other

resources) (Maxwell et al. 2012: 140). In fact, corruption can become deeply embedded in the

fabric of governance (Harvey, 2012, online).

Post-conflict environments are characterised by weak societal structures, a problem that is

linked to a weak civil society and a lack of independent mass media. In the words of Bertram

Spector: “years of violence can rob society and the mass media of their capacity to organise,

mobilise and educate citizens; oversee government effectively; and advocate and pressure for

reforms” (2008a 14). Moreover, prolonged conflict can adversely affect the practices

associated with legitimate forms of governance, such as transparency and accountability

(Giraldo, 2006: 6). The absence of these is a direct leftover of the conflict period, but unless

they are tackled and public trust in the operation of the government is re-established, this will

severely undermine any efforts aimed at reducing corruption (UNDP, 2010: 12).

Bolongaita (2005: 3-5) suggests that corruption poses four major obstacles to achieving

establishing long-term peace and ensuring post-conflict success. To begin with, corruption,

whether it is a real problem or only a perceived one, dissuades potential donors, be they non-

governmental organisations or countries, from allocating resources due to a lack of trust or

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confidence. Next, even in cases where aid is provided, it might not necessarily reach its

beneficiaries. This is due to the fact that many corrupt agencies and officials can divert the

financial resources and use them at their own discretion for personal profit, meaning that no

one of the problems faced by the population of the country are addressed. In addition, once

corruption is embedded in a country, it leads to the accumulation of debt in the public sector,

as well as absolute deprivation. Last, but not least, the draining of financial resources creates

the need for more funds, in order to fill in the gaps in budgets and available financial assets.

These are provided by borrowing even more funds, which, in turn, are subject to more

corruption and embezzlement, creating a vicious cycle. As this becomes more

institutionalised, the problems of social exclusion and absolute deprivation within the

population are also exacerbated. Ultimately, this refuels the conflict, forcing the country and

its population to take up the same path, which the society has tried to abstain from previously.

In order to reduce the spreading of corruption in the post-conflict period several interventions

can be made. As Boucher et al. 2007 advices, it is of great importance that peace agreements

contain anticorruption clauses, thus allowing the international community to actively support

and supervise the implementation of these, whilst at the same time promoting transparency,

accountability and integrity (Boucher et al. 2007: 58-59). At the same time, the peace

negotiation process should not solely concentrate on reducing the violent conflict, but also

create the platform upon which the new political, economic and social institutions of the state

will be re-established. For the successful sustainability of security and the promotion of peace

within the state, the root causes of the conflict should be addressed and any underlying

tensions should be resolved (ibid.). Having outlined the problematic relationship which exists

between conflict, corruption and post-conflict societies, the next section of this paper will

draw attention to the effectiveness of interventions undertaken in countries that have suffered

from violent conflicts.

The effectiveness of intervention

However, the establishment of peace within conflict-ridden countries appears to be a

burdensome task, having in mind that nearly half of all post-conflict countries return to war

within five years of signing a peace treaty (Giraldo, 2006: 6). Other critics of international

peacekeeping efforts have expressed the criticism that liberal peace-building has shown to be

counterproductive, as it “created very weak states and institutions that are dependent upon

foreign support and subject to tests of power-sharing and corruption” (Richmond and Franks,

2007: 30). The imposition of liberal democratic forms of governance can result in unforeseen

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problems, as it fails to take into account country-specific factors (Rondelli and Montgomery,

2005: 16). Therefore, unless the specific needs of the countries are not taken into account, the

chance for successfully tackling corruption will remain quite slim. One notable exception,

where international interventions have resulted in the stabilisation of a country and tackling

of corruption, is Indonesia (Bolongaita, 2010: 25-26). Thus, it is of vital importance to ensure

that the problems of security and peace are resolved first, before a step can be taken towards

the re-establishment of a strong national government that is able to tackle corruption-related

problems (Rondelli and Montgomery, 2005: 18-19).

Conclusion

The aim of this paper was to provide an outline of the links which exist between conflict-torn

states and corruption and whether international efforts have been successful in tackling the

problem of corruption. As it was shown, in order to successfully resolve any challenges posed

by corruption in the developing world, the global community should devise strategies that are

able to address a country’s specific needs, but also adhere to good practice. Although

significant progress has been made in the area of tackling corruption in the post-war countries

from the developing world, this is a long-term goal which can only be achieved with

perseverance and consistency in the advocated interventions. Future research in the realm of

corruption and transitional societies could potentially adopt a comparative approach and seek

to establish common factors between post-conflict countries and countries which have

experienced changes in the models of governance, i.e. post-communist states. It is likely that

corruption within the latter will take different dimensions, yet such a research project could

potentially identify and advice on good practice, which after careful consideration and

evaluation could be used to tackle corruption in post-conflict states.

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