The Struggle Against Corruption
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1 The Struggle Against Corruption
2 Also by Roberta Ann Johnson Puerto Rico: Commonwealth or Colony? (1980) Whistleblowing: When It Works And Why (2003)
3 The Struggle Against Corruption: A Comparative Study Edited by Roberta Ann Johnson
4 THE STRUGGLE AGAINST CORRUPTION ROBERTA ANN JOHNSON, Softcover reprint of the hardcover 1st edition All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles or reviews. First published 2004 by PALGRAVE MACMILLAN 175 Fifth Avenue, New York, N.Y and Houndmills, Basingstoke, Hampshire, England RG21 6XS Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin s Press, LLC and of Palgrave Macmillan Ltd. Macmillan is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN ISBN (ebook) DOI / Library of Congress Cataloging-in-Publication Data The struggle against corruption : a comparative study / [edited by] Roberta Ann Johnson. p. cm. Includes bibliographical references and index. 1. Commercial crimes. 2. White collar crimes. 3. Globalization. I. Johnson, Roberta Ann. HV6768.S dc A catalogue record for this book is available from the British Library Design by Newgen Imaging Systems (P) Ltd., Chennai, India. First edition November
5 Dedicated to the Memory of my Parents, Louis and Jean Johnson
6 This page intentionally left blank
7 CONTENTS Series Editor Foreword Preface and Acknowledgments viii x 1. About Corruption 1 Roberta Ann Johnson and Shalendra Sharma 2. The United States: In Search of the Perfect Law 21 Roberta Ann Johnson 3. White Corruption in Israel 53 Chaim Kalchheim 4. Russia and Her Ghosts of the Past 81 Jasmine Martirossian 5. India: Between Majesty and Modernity 109 Maya Chadda 6. Corruption in Four Countries 145 Roberta Ann Johnson About the Authors 167 Index 169
8 SERIES EDITOR FOREWORD The Struggle against Corruption:A Comparative Study offers a new perspective on a very old subject: How can corruption in government office be eliminated, or at least reduced and made subject to punishment, without endangering those who reveal its presence? By bringing together studies of this complex problem in the United States, Israel, Russia, and India, Roberta Ann Johnson offers an outstanding example of the kind of books now being published in the Palgrave series Perspectives in Comparative Politics. Its topic is of great and obvious importance, its scholarship is up to date and comprehensive, its style is clear and persuasive, and, perhaps most important of all, it is fully and consistently comparative. All books in this series are designed to be scholarly, topic-oriented studies of a particular problem, accessible to upper-division students as well as to graduate students and professors. They begin with an introductory chapter, covering the relevant literature and laying out the problem, and end with a concluding chapter, summarizing what has been learned about the problems in the three or more nations covered, and elucidating the important comparative lessons learned. The Struggle against Corruption meets the guidelines for books in this series perfectly. The introduction is erudite yet absolutely clear, and the four case study chapters bring out the truths about the level of corruption and attitudes toward corruption in each nation. No effort is made to force similarities to emerge comparison means recognizing difference as well as finding points in common from case to case. Nonetheless, similarities do emerge, and these are brought out in the final chapter. An additional and very important strength of Dr. Johnson s conclusion is her determination to bring out, in no uncertain terms, the moral case against corruption. Arguments others have made for the pragmatic value of a little bit of corruption are carefully weighed and cogently disposed of. Corruption does far more harm than any passing good obtained, and Johnson provides the evidence and the argument we need to remind ourselves and others that this is so.we live in a time when students (and their teachers) can easily become overwhelmed by the level of public dishonesty apparent in nation after nation, including our own. Johnson
9 Series Editor Foreword ix never rants, rages, or preaches; she simply points out, in detail, the serious moral and economic costs of corruption. The Struggle against Corruption is written in a lively and interesting style, even as Johnson makes subtle and complex distinctions, explaining the most esoteric theories of others in this field. She knows how to keep her language simple and straightforward while maintaining comprehensive treatment of her topic. I am very proud to have this book join the series Perspectives in Comparative Politics. It is an important contribution to the literature of political science and will, I feel sure, be recognized as such. KAY LAWSON
10 PREFACE AND ACKNOWLEDGMENTS Corruption is a hot topic. It has been studied, measured, and monitored by academics and analysts at universities, in public and nonprofit agencies, and in banks and businesses. Corruption has been approached from a moralistic point of view, addressed with a legalistic perspective, defended in terms of its nation-building functions, and condemned in terms of its consequences. Anticorruption has been the theme of countless political campaigns in cities and states around the world. It has also been a theme for the World Bank, the Organization for Economic Cooperation and Development, and the International Monetary Fund. By the 1990s, production and markets were becoming part of a world economy where participants were so interrelated that there was pressure on them to accommodate to worldwide standards and modes of operation. International norms included assumptions about contracts, trade, and fiduciary responsibility. The global economy held out a promise of enormous wealth for participants. Now, experts who wrote about corruption saw it as negative not because of its moral implications but because it stood in the way of participation in the world s large and lucrative market. This book is written in the context of a beckoning global economy but it is not a cheerleader for the eradication of corruption for that reason. Corruption is worth reducing because it demoralizes the human spirit and it wastes opportunity, energy, and resources. The book examines the nuances, the compromises, the complexities, and the complexion of corruption and its remedies, as it operates in four very different countries. The inspiration for this book comes from my work on whistleblowing and from my participation in international ethics conferences, where I met practitioners and scholars and learned from them first hand. I would like to acknowledge them and acknowledge colleagues and friends closer to home. My study was enhanced by suggestions from my University of San Francisco colleagues Professors Brian Weiner, Patrick Murphy, and Rick Kozicki (Emeritus) in the politics department; from Professors Michael Lehmann and Hartmut Fischer in the economics department; Associate Dean Denis Neilson; and Professors Richard Puntillo, John Koeplin, and
11 Preface and Acknowledgments xi Anthony Martinez in the School of Business and Management, and from conversations with Professor Emily Stoper, California State University, Hayward; Professor Robin Lakoff, University of California, Berkeley; and Paul Viotti, University of California, Santa Cruz. I appreciate the encouragement from our comparative politics series editor, Professor Emeritus Kay Lawson, San Francisco State University; the feedback and editing suggestions from my sisters, Nikki Feit and Suellen Johnson, and brother, Alan Johnson; the insider insights of businessman Isaac Yomtovian; and, at the University of San Francisco, the typing skills of Norma Washington who is program assistant in Business Affairs, and the technical assistance and patience of Shona Doyle, program assistant, politics department. My student assistant,venu Bhakhri, labored long and hard and was an enormous help with book details. And of course, there are never just the right words available to thank my partner, San Francisco State University Professor Robert C. Chope. He was patient and supportive throughout the project. His insights and editing suggestions made the final product better and he complained only occasionally about how it took time away from travel, dancing, and movies.
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