Most people are not corrupt. For those ordinary citizens who are involved, it is more likely to be petty corruption, perhaps paying a bribe to avoid a speeding ticket, than they are to get involved with grand public corruption. In 2013, Transparency International reported that seven percent of Americans surveyed reported paying a bribe.
For those who are involved with grand corruption, there are some things they tend to hold in common. Most, but not all, public corruption involves a transaction, an exchange of something of value for another thing of value. The people on each side must have something they can trade to satisfy their needs or ambitions. This simple fact tells us a lot about the kinds of people who choose corruption.
People from many kinds of businesses can get involved with grand public corruption. They tend to have two things in common.
- They benefit from government services and contracts more than most. They require frequent interaction with government officials for permits, leases, procurement contracts, and other approvals.
This criterion is not restricted to businesses and private organizations. As the U.S. is a federal system, there are opportunities for corruption between different units of government and the officials within them. See the retribution example in Part D below.
- Many businesses and organizations also play for high stakes that are often made more rewarding only with government assistance. Examples include large market shares, large profits, or political control of a government or government agency.
Examples include:
- Construction firms
- Oil, gas, and mining industries
- Weapons manufacturers and military support service providers
- Financial firms
- Drug gangs and cartels
- Healthcare firms
- Some larger firms within the technology sector
- Real estate firms
- Transportation firms
In some countries and times, a few powerful private interests (e.g. powerful businesses, oligarchs, corporate interest groups, and drug cartels), have managed to gain control of government and public policy to serve their own needs, rather than the public good. This often involves corrupt officials working with their private partners to change laws and institutions, siphon public funds through corrupt contracts and monopolies, and dismantle democratic checks and balances to stay in power. This process is referred to as “state capture.” It is different from typical corruption because it involves manipulating the laws and institutions of most or all of a government. (See this link for an example from South Africa.)
On the other side of the transaction are government officials. In the United States, most officials are honest. Those who are corrupt are a very small share of the total number of elected and unelected officials. For example, in 2014, out of 435 representatives and 100 senators, Congress recorded only fifteen legislators (3%) involved in alleged or actual corruption for private and partisan gain.
Those who participate in grand public corruption are empowered to provide what businesses, organizations, and political parties want. In addition, they believe they can act without consequential accountability or scrutiny.
For elected officials, the lack of consequence can come from holding a “safe seat,” meaning there are not enough voters willing to punish a corrupt official by voting for someone from the other party in the next round of elections. Term limits can be another problem for accountability. Voters cannot punish elected officials for corruption detected in their final term of office. (Court cases might remain an option.) The lack of consequence may also be due to legal immunity from prosecution, partisanship when one party controls all branches of government, lack of media coverage, or willful ignorance from partisan supporters of corrupt officials. Another possibility for some officials is the obscurity of their offices.
Obvious examples include officials who have the power to shape policies or judicial decisions in favor of a business, organization, other government unit, or political party. Such powers are held by state and federal judges, state elections officials, public officials at municipal, state, and federal levels, state and federal legislators, mayors, governors, and even presidents and their senior officials.
More obscure examples include departments, agencies, and offices that determine policies/decisions for procurement, tax administration, property tax valuations, industry regulations, licensing, patent grants and extensions, banking and other industry regulations, and service provision standards.
Next week, we will explore how much corruption there is in the USA.
