Past Event

Fighting corruption: from headlines to real impact

Despite recent efforts to tackle corruption there is not much evidence that these strategies are producing results. Why is this the case and what can we do to improve the situation?

Date: April 28, 2016, 12:30 pm Topic: European Macroeconomics & Governance

SUmmary

See below for video and event materials

This event dealt with corruption, its measurement and derived policy implications, especially in a complex multi-country context such as the EU. Being able to measure the diffusion and evolution of corruption over time may help policymakers evaluate policies more reliably and design better policy responses.

While some indicators have already been developed by institutions and academics, they suffer several drawbacks. In particular, they do not track what actually happens in reality and are subjective in nature. One example is the Corruption Perception Index (CPI) developed by Transparency International (TI), which had the great merit of raising awareness on the topic but still sufferedfrom non-objectivity. Thanks to the increasing availability of data at granular level, institutions and academics are in the position today to study and perhaps propose better instruments to measure corruption and ultimately fight it. Building on gained knowledge, EU research projects ANTICORRP and DIGIWHIST, as well as the Netherlands Presidency report ‘Public Integrity and Trust in Europe‘, try indeed to go beyond public opinion and subjective data to measure this phenomenon objectively.

Empirical evidence shows how corruption may harm the health of a society in several dimensions. In the EU context, it has been shown how trust in the EU, innovation activity and government effectiveness  are positively correlated with a decreased level of corruption. This holds when corruption is measured in various ways, such as the effectiveness of anti-corruption measures, control of corruption and public integrity. Moreover, evidence suggests a positive relationship between absorption rate of EU funds and the degree of favouritism, shedding light on how costly this phenomenon is in the EU area. Importantly, causality tests seem to give strength to these findings.

After the impact analysis at the super-national level, the discussion then focused on measurement and moved to the national level till reaching the company level, exploiting the increased data granularity currently available. Indeed, interestingly, it has been shown how the transitions in successful companies in the public-private arena can be related to the change in government in a given country. Controlling for the company characteristics which may be the roots of success, it is indeed possible to map the effect of a change in government to the ability of a company to be successful.

Indeed, evidence shows that the set of companies which are ‘successful’ as measured, for example, by the number of won tenders, varies substantially under different governments, casting doubt on the merit of the reasons for the success. In addition, it has been interestingly shown how one can measure political connection, by jointly considering the aforementioned data on successful companies with data on companies with different degrees of political ties. Not surprisingly, it has been found that the most successful companies also have strong political ties.

In conclusion, panellists provided further rationale for greater engagement of EU authorities. Corruption is a transnational phenomenon which may spillover across states, despite substantial variety in the level of corruption across EU members states. However, panellists called for EU policy design on a country-specific basis. The increased engagement should be coupled with a stronger legal and institutional framework in the EU, which ultimately should address the problem with a comprehensive strategy avoiding policy incoherence.

Event summary by Luca Nocciola, research intern

VIDEO RECORDING

Event Materials

Presentation | Mihaly Fazekas and Alicia Mungiu-Pippidi
Presentation | Carl Dolan

Schedule

Apr 28, 2016

12:30-13:00

Check-in and lunch

13:00-13:30

Presentation

Mihaly Fazekas, Research Associate, Department of Sociology, University of Cambridge

Alina Mungiu-Pippidi, Professor, Hertie School of Governance

13:30-14:30

Panel discussion and audience Q+A

Chair: Alessio Terzi, Former Affiliate Fellow

Carl Dolan, Director, Transparency International Europe Office

14:30

End

Speakers

Carl Dolan

Director, Transparency International Europe Office

Mihaly Fazekas

Research Associate, Department of Sociology, University of Cambridge

Alina Mungiu-Pippidi

Professor, Hertie School of Governance

Alessio Terzi

Former Affiliate Fellow

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

[email protected]

Read about event More on this topic
 

Past Event

Past Event

Conference on the Future of Europe: Vehicle for reform versus forum for reflection?

At this policy dialogue organised by the research project EU3D, panellists will discuss different options and what they may entail while revisiting the debates on the future of Europe at national and EU-level that have been conducted thus far and their patterns, including preliminary findings on national parliamentary debates.

Speakers: Sergio Fabbrini, John Erik Fossum, Magdalena Góra, Vivien Schmidt, Manfred Weber and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: June 16, 2021
Read article More on this topic
 

Blog Post

The socio-economic consequences of COVID-19 in the Middle East and North Africa

Confronted with COVID-19, high-income Gulf countries have done better than most of their middle- and low-income neighbours; Jordan and Morocco are also positive exceptions.

By: Marek Dabrowski and Marta Domínguez-Jiménez Topic: Global Economics & Governance Date: June 14, 2021
Read about event More on this topic
 

Past Event

Past Event

The Recovery and Resilience Fund: Accelerating the digitalisation of the EU?

How can new EU funds financed by EU borrowing supplement national digital and green funding and EU funds available from the standard seven-year EU budget to accelerate digitalisation?

Speakers: Sam Blackie, Zsolt Darvas, Maria Teresa Fabregas Fernandez, J. Scott Marcus and Ben Wreschner Topic: European Macroeconomics & Governance Date: June 8, 2021
Read about event More on this topic
 

Past Event

Past Event

Women, Covid-19 & The EU Recovery Plan

How can we ensure that the recovery plan doesn’t leave women behind when 84% of working women in the EU aged 15-64 are employed by services that were predominantly impacted by Covid-19 restrictions?

Speakers: Mary Collins, Maria Demertzis, Alexandra Geese, Jacob Funk Kirkegaard, Dan Mobley, Naomi O'Leary and Emma Rainey Topic: European Macroeconomics & Governance Date: June 2, 2021
Read about event More on this topic
 

Past Event

Past Event

Paris Reinforce: From Numbers to Insights: How to think about economic-climate modelling

Join us for the presentation of ‘From Numbers to Insights: How to think about economic-climate modelling’.

Speakers: Haris Doukas, Ajay Gambhir, Glen Peters, Georg Zachmann and Ewelina Daniel Topic: Energy & Climate Date: May 26, 2021
Read about event More on this topic
 

Past Event

Past Event

The work of the future: How are new jobs created and what are the implications for labour markets?

Join us for a presentation of 'New Frontiers: The Origins and Content of New Work, 1940 — 2018' by David Autor (MIT and NBER) and the findings on the source of 'new work' followed by a discussion with an invited panel of academics and policy makers.

Speakers: David Autor, Maarten Goos, Barbara Kauffmann and Georgios Petropoulos Topic: Innovation & Competition Policy Date: May 25, 2021
Read about event
 

Past Event

Past Event

The Future of Work – a conversation with Commissioner Schmit

EU Commissioner for Jobs and Social Rights Nicolas Schmit joins Bruegel for a conversation around the future of work.

Speakers: Mario Mariniello and Nicolas Schmit Topic: European Macroeconomics & Governance, Innovation & Competition Policy Date: May 25, 2021
Read about event More on this topic
 

Past Event

Past Event

EU recovery funds and good governance

A live podcast with Tomáš Zdechovský MEP.

Speakers: Maria Demertzis and Tomáš Zdechovský Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 20, 2021
Read about event More on this topic
 

Past Event

Past Event

After COVID-19: a most wanted recovery

This event, jointly organised with ISPI, as the National Coordinator and Chair of the T20 Italy, is part of the T20 Spring Roundtables and it will focus on strategies for a swift and sustainable economic recovery for Europe.

Speakers: Franco Bruni, Maria Demertzis, Elena Flores, Paul De Grauwe, Christian Odendahl, Miguel Otero-Iglesias and André Sapir Topic: European Macroeconomics & Governance Date: May 19, 2021
Read about event More on this topic
 

Past Event

Past Event

Global value chain reshuffling: From tight coupling to loose coupling?

As the focus shifts from efficiency to resilience in global supply chains, what does this mean for China?

Speakers: Erik Berglöf, Alicia García-Herrero, Niclas Poitiers and Kristy Tsun-Tzu Hsu Topic: Global Economics & Governance Date: May 11, 2021
Read about event More on this topic
 

Past Event

Past Event

Form a climate club: United States, European Union and China

Can the three biggest economies agree a carbon tax on imports to catalyse climate action globally?

Speakers: Simone Tagliapietra, Sheldon Whitehouse and Guntram B. Wolff Topic: Global Economics & Governance Date: May 3, 2021
Read about event More on this topic
 

Past Event

Past Event

Covid-19 and the geopolitics of the Balkans

How have China, Russia, Turkey and others stepped up their activities in the Balkans at a time when the prospect of enlargement is diminished?

Speakers: Michael Leigh, Pierre Mirel, Aleksandra Tomanić, Justyna Szczudlik and Catherine Wendt Topic: Global Economics & Governance Date: April 29, 2021
Load more posts