Theories and Tools for Combatting Corruption Law E513 A/B. Mondays 3:30 5:20 p.m. ** Room 119
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1 Instructors: Jon Eddy Room 428 Office hours by appointment Anita Ramasastry Room 419 Office hours by appointment Graduate Teaching Assistant: Anna Bosch for appointment Theories and Tools for Combatting Corruption Law E513 A/B Mondays 3:30 5:20 p.m. ** Room 119 Course Description: Corruption has long been identified as an obstacle to development, and cost of doing business in many countries. This course examines theories, causes and consequences of corruption, and select regimes established to combat and measure it, e.g., UN Convention Against Corruption, OECD Anti-Bribery Convention, U.S. Foreign Corrupt Practices Act, and Corruption Perceptions Index of Transparency International. Learning Goals and Objectives: By the end of this course, students will be able to Understand structural causes, costs and implications of and rationalizations for corruption in general, and as it relates to developing countries; Identify stakeholders and constituencies, as well as the roles played by various domestic and international actors; Understand the current international framework addressing corruption and a sampling of bilateral anti-corruption efforts; Critically analyze anti-corruption measures in use and identify possible barriers for combatting corruption; Propose potential suitable alternative measures. ** Due to scheduled holidays, this course has two make-up classes that will meet on Wednesday January 23 and Wednesday February 20. Both make-up classes will be held in Room 119, from 5:30 7:20 p.m. 1
2 Evaluation and Grading: Regular attendance at all class sessions (including rescheduled make-up sessions required by University Monday holidays or faculty travel commitments) is required in accordance with ABA accreditation standards. (See course calendar on TWEN website). Student evaluation is based on three components: class participation (as determined in the judgment of the instructors), both in class and through the course TWEN website s discussion forum (25%); individual contribution (written product) to team strategy report (25%); and final team strategy presentation (Spring Quarter) (50%). The group presentation will be more fully described in class: briefly, at the initial class session, and in detail, at the final class session of Winter Quarter. Course Schedule and Required Texts: WEEK 1: Causes / theories of corruption Heidenheimer & Johnston, chapter 1, Carl J. Friedrich, Corruption concepts in historical perspective, pp ; chapter 2, John Gardiner, Defining corruption, pp ; chapter 3, Mark Philp, Conceptualizing Corruption, pp ; chapter 4, Colin Leys, What is the Problem, pp ; and chapter 9, Arnold Heidenhemer, Perspectives on the Perception of Corruption, pp WEEK 2: Guest Lecturer Phil Nichols, Wharton School History / kinds / costs and implications of corruption Heidenheimer & Johnston, chapter 19, Parnab Bardhan, Corruption and Development: A Review of Issues, pp ; chapter 20, Paolo Mauro, The Effects of Corruption ion Growth and Public Expenditure, pp ; and chapter 21, Susan Rose-Ackerman, When is Corruption Harmful? pp WEEK 3: Corruption by regions Africa, Asia ** CLASS MEETS Wednesday from 5:30 7:20 p.m. due to Martin Luther King, Jr. holiday** Heidenheimer & Johnston, Intro to Part VII and chapter 22, Jean-Francois Medard Corruption in the Neo-Patrimonial States of Sub-Saharan Africa, pp ; chapter 25, Alice Sindzingre, A Comparative Analysis of African and East Asian Corruption, pp ; chapter 27, Paul D. Hutchcroft, The Politics of Privilege: Rents and Corruption in Asia, pp ; chapter 28, Jon S.T. Quah, Responses to Corruption in Asian Societies, pp Alexandra Wrage, Bribery and Extortion, chapter 3, Gifts, Favors and Hospitality; and chapter 4, Undermining Confidence in Government, pp
3 Susan Rose-Ackerman, Corruption: Greed, Culture and the State, Yale Law Journal Online, Volume 120 (2010), pp Tim Lindsey and Howard Dick, eds., Corruption in Asia (Federation Press, 2002), chapter 1, Tim Lindsey, History Always Repeats? Corruption, Culture and Asian Values, pp WEEK 4: Perceptions of and measuring corruption Heidenheimer & Johnston, chapter 9, Arnold J. Heidenheimer Perspectives on the Perception of Corruption, pp (review/already assigned in week 1); and chapter 44, Michael Johnston, Measuring the New Corruption Rankings: Implications for Analysis and Reform, pp Robert I. Rotberg, ed., Corruption, Global Security, and World Order (Brookings Institution Press, 2009), chapter 16, Peter Eigen, A Coalition to Combat Corruption: TI, EITI, pp Sharon Eicher, ed., Corruption in International Business: The Challenge of Cultural and Legal Diversity (Gower, 2009), chapter 5, Maks Kobonbaev and Sharon Eicher, Quantifying the Immeasurable and chapter 6, Maks Kobonbae, Donald Jacobsen, and Sharon Eicher, Critiquing the Indicators of Corruption and Governance, pp WEEK 5: International and domestic attempts to combat corruption FCPA, OECD Excerpts from Criminal Division, U.S. Department of Justice and Enforcement Division, U.S. Securities and Exchange Document, FCPA: A Resource guide to the Foreign Corrupt Practices Act, pp. 1-35; Also, text of FCPA statute, pp Text of OECD Anti-Bribery Convention and related commentary and Recommendation, pp James Surowiecki, The New Yorker, Invisible Hand, Greased Palm, (May 14, 2012) ki WEEK 6: International framework to combat corruption AML, UNCAC Corruption, Volume Two, (Edward Elgar, 2011), chapter 16, Edgardo Buscaglia, On Best and Not So Good Practices for Addressing High Level Corruption Worldwide: An Empirical Assessment, pp See also, links to Financial Action Task Force (FATF) and UN Convention Against Corruption (UNCAC) materials on TWEN site. 3
4 WEEK 7: Corruption in development aid **CLASS MEETS Wednesday from 5:30 7:20 due to Presidents Day holiday** Georg Cremer, Corruption and Development Aid (Lynne Rienner, 2008), chapters 3 6, pp Corruption, Volume Two, (Edward Elgar, 2011), chapter 18, Charles Kenny and Maria Musatova, Red Flags of Corruption in World Bank Projects: An Analysis of Infrastructure Projects, pp Dominik Zaum and Christine Cheng, eds., Corruption and Post-Conflict Peacebuilding: Selling the Peace? (Routledge, 2011), chapter 5, Sarah von Billerbeck, Aiding the State or Aiding Corruption? pp WEEK 8: Strategies for combatting corruption Amartya Sen, Development as Freedom (1999), chapter 11, Social Choice and Individual Behavior, pp Corruption, Volume Two, (Edward Elgar, 2011), chapter 19, Francesca Recanatini, Anti-Corruption Authorities: An Effective Tool to Curb Corruption? pp Bertram I. Spector, Negotiating Peace and Confronting Corruption: Challenges for Post-Conflict Societies (United States Institute of Peace, 2011), ch 9 12, Impact of Integrity Provisions, Lessons for Analysts, Lessons for Practitioners, Achieving Peace with Integrity, pp Dominik Zaum and Christine Cheng, eds., Corruption and Post-Conflict Peacebuilding: Selling the Peace? (Routledge, 2011), chapter 13, Roberto Belloni, Part of the Problem or Part of the Solution? Civil Society and Corruption in Post- Conflict States, pp WEEK 9: Guest Lecturer Alexandra Wrage, Trace International Corporate anti-corruption strategies Trace International, The High Cost of Small Bribes (2009), pp Sharon Eicher, ed., Corruption in International Business: The Challenge of Cultural and Legal Diversity (Gower, 2009), chapter 9, Sharon Eicher, Risk Management Playing by the Rules, pp See also materials supplied by Guest Lecturer Alexandra Wrage via TWEN site. WEEK 10: Explanation and preparation for 2 nd quarter exercise 4
5 Required Texts: Arnold J. Heidenheimer & Michael Johnston, eds., Political Corruption (Transaction Publishers, Third Edition, 2002), available at the University Book Store. Course Pack, also available at the University Book Store. Links to any additional materials can be found on the course TWEN site, under the weeks for which they are assigned. 5
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