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In 2007, I published an article that sought to show in detail how the Iraqi economy had been opened up to allow the transformation of the economy and the routine corruption that enabled a range of private profit-making companies to exploit the post-invasion economy. The article argued that the illegal war of aggression waged by a ‘coalition’ headed by George Bush and Tony Blair was tied to a series of subsequent crimes of pillage and occupation.

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There are eleven diverse hill states in India which comprise the group of "Special Category States." They all suffer from the disadvantages that result from remoteness and geographical isolation, as well as historical and demographic circumstances. In addition to pathetic infrastructures, scant resources, unrealized human potential, and stymied economic growth, these states also represented various groups of marginalized minorities.

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Retractions in scholarly journals have reached record levels. Doctorates have been removed from politicians and others for plagiarism, there has been tasteless denigration of academic colleagues under cover of academic freedom, researchers have been jailed for fraud, and conflicts of interest involving private industry’s role at universities have generated notoriety.

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चाहे  आप कुछ भी या  आप माने या न माने पर एक बात झुठलाई नही जा सकती कि इस छोटी सी दिखने वाली झाडू ने राजनीति में भारी बदलाव ला दिया है. जहां हर आम और खास आदमी भ्रष्टाचार से दुखी था और उसे कोई रास्ता भी नजर नही आ रहा था ऐसे मे झाडू ने कमान सम्भाली और जीत हासिल कर के दिखा दिया कि भ्रष्टाचारियों सावधान !!!

वैसे भी अब तो अलग अलग Help line भी बन गई है और तो और जो भी कुछ गडबड होता है सब सोशल मीडिया पर आ जाता है …

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In December 2013, Turkish authorities arrested the sons of several prominent cabinet ministers on bribery, embezzlement, and smuggling charges. Investigators claimed that the men were contributing members in a conspiracy to illicitly trade Turkish gold for Iranian oil gas (an act which, among other things, violates the spirit of United Nations’ sanctions targeting Tehran). The scheme purportedly netted a vast fortune in proceeds in the form of dividends and bribes. Among those suspected of benefiting from the trade was Prime Minister (now President) Tayyip Erdoğan and members of his family. The firestorm from this scandal was initially so furious many feared that Erdoğan’s Justice and Development Party would not survive its implications. Yet as of this September, the investigation into this scandal has all but come to an end. The officials involved in propagating and executing the investigation have all been dismissed or transferred. Consequently, virtually all charges related to the case have been dropped.

Most of the analysis of this scandal has focused upon the political implications of the arrests and the subsequent purges of Turkey’s national police force. Events since December have indeed underscored the intense levels of strife within Turkey’s governing institutions as well as the growing authoritarian tendencies of the country’s ruling party. Yet Turkey’s “oil for gold” corruption scandal also illuminates fundamental, yet long-standing, aspects of the relationship between prominent illicit trades and the country’s politics.

Turkey’s black market, by all accounts, is exceeding large and highly lucrative. As a country sitting at a major intersection in global commerce, Turkey acts as a spring, valve and spigot for multiple illicit industries. Weapons, narcotics and undocumented migrants, as well as contraband carpets, petroleum, cigarettes, and precious metals all pass in and through the country’s borders on a regular basis. Official statistics on cigarette smuggling offer a few hints of the extent of smuggling in and out of Turkey. According to Interior Ministry sources, Turkish seizures of smuggled cigarettes grew fourteen fold between 2009 and 2012 (with ten million cigarettes seized in 2009 and over 145 million in 2012). In January of this year, Bulgarian customs officials purportedly confiscated fourteen million cigarettes illegally imported from Turkey in one seizure alone. The numbers of arrests for cigarette smuggling has also climbed precipitously, with over 4000 people arrested in 2009 and over 24000 arrests in 2012.

Organized crime takes other forms in Turkey. Criminal networks, builders, and lawmakers have been known to violate laws governing land sales, usage, building safety, and contracting. Bribes and kickbacks to government officials and regulators historically have been essential elements in the rapid building projects undertaken throughout the country for much of the last century. Charges levied against the managers of Istanbul’s Fenerbahce soccer club stand as an example of the match fixing and extortion scandals that have rocked professional sports in Turkey in recent years. Gangsters and extortionists, known as kabadayı, have been counted among Turkey’s most noted and notorious figures in the public spotlight. All in all, organized criminal trades have generated an untold number of fortunes for a select few and have provided a subsistence living for an even larger number of average citizens for a very long time in Turkey.

If Tayyip Erdoğan and his family did glean a great fortune as a result of illicit doings (which some reports claim to amount to total in the tens of millions of dollars), Turkey’s president joins a fairly sizable host of Turkish politicians who have benefited from organized criminal trades. American officials in the 1950s, for example, secretly suspected that noted members of Adnan Menderes’ Democratic Party had protected major Turkish heroin traffickers. During the 1970s, at least four members of the Turkish Grand National Assembly were official charged with attempting to transport heroin abroad. Other politicians from this era, including one-time Prime Minister Necmettin Erbakan, were unofficially suspected of engaging in the drug trade but never charged. Accusations of theft and corruption especially dogged the governments of the tumultuous 1990s. Tansu Ciller, the country’s first female prime minister, was implicated in organized criminal activity both before and after she was first elected to office. Tayyip Erdoğan’s JDP came to power in 2002 with the promise of bringing discipline and respectability to politics. Yet even as recent as last year, a regional JDP chairman was implicated in trading in heroin in the province of Van. The revelations of December 2013 now has many in Turkey convinced that the JDP is as dirty and corruptible as any of the parties that had preceded it.

Erdoğan’s ability to deflect last year’s corruption charges has not put the specter of smuggling and corruption to rest. Local media reports and other studies suggest that the Syrian civil war has stimulated a surge in smuggling along Turkey’s southern border. It is now estimated that fuel, cigarette, and cell phone smuggling has risen by 314%, 135%, and 563% respectively since the war began. The initial efforts to arm and maintain resistance groups in Syria were deeply indebted to Turkey’s smuggling trade. As smuggling continues, it is clear that some groups have attempted to tax trade into and out of Syria (al-Nusrah, for example, purportedly levies a fee of 500 Syrian lira for every barrel of fuel that crosses the border). What this means for the present and future of Turkey’s government is not entirely clear. Suggestions that Ankara has allowed for the passage of large numbers of foreign fighters into Syria has cast doubt over the country’s police and customs officials stationed on its borders (particularly after the official purges earlier this year). Trading schemes and corruption allegations like those revealed in December may yet again manifest themselves considering what international watchdogs call Turkey’s “grey” status as a state with loose embezzlement and money laundering controls. Whether these trends will dent the image of Tayyip Erdoğan or upend JDP control over Turkey remains to be seen.

Headline Image: Turkish flag photo by Abigail Powell. CC BY-NC 2.0 by Flickr

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The destructive technology in Jessica Shirvington’s duology may not be as futuristic as it seems  When a certain multinational corporation announced the creation of the Apple Watch, Jessica Shirvington fans were buzzing. Not because they were excited about Apple’s newest product but because the watch bears an eerie resemblance to the M-band technology used in […]

Political economy is back on the centre stage of development studies. The ultimate test of its respectability is that the World Bank has realised that it is not possible to separate social and political issues such as corruption and democracy from other factors that influence the effectiveness of its investments, and started using the concept.

It predates the creation of “economics” as a discipline. Adam Smith, David Ricardo, Thomas Malthus, James Mill, and a generation later Karl Marx and Friederich Engels, explored how groups or classes in society exploited each other or were exploited, and used their conclusions to create theories of change or growth.

Marx’s ideas were taken up in the 1950s by economists and sociologists of the left, such as Paul Baran (The Political Economy of Growth, 1957) and later Samir Amin (The Political Economy of the Twentieth Century, 2000) who linked it to theories of imperialism and neo-colonialism to interpret what was happening in newly independent African countries where nationalist political parties had taken power.

Marx and Engels in their early writings, and Marxist orthodoxy subsequently, espoused determinist theories in which development went through pre-determined stages – primitive forms of social organisation, feudalism, capitalism, and then socialism. But in their later writings Marx and Engels were much more open, and recognised that some pre-capitalist formations could survive, and that there was no single road to socialism. Class analysis, and exploration of the economic interests of powerful classes, and their uses of the technologies available to them, could inform a study of history, but not substitute for it.

That was how I interpreted what happened in Tanzania in the 1970s. The country was built around the economic interests of those involved, and the mistakes made, both inside Tanzania but also outside. It focussed on the choices made by those who controlled the Tanzanian state or negotiated “foreign aid” deals with Western governments—Issa Shivji’s bureaucratic bourgeoisie. These themes are still current today.

I am not alone. Michael Lofchie’s (A Political Economy of Tanzania, 2014) focuses on the difficult years of structural adjustment in the 1980s and 1990s). He argues how the salaried elite could personally benefit from an overvalued exchange rate. From 1979 on, under the influence of the charismatic President Julius Nyerere, Tanzania resisted the IMF and World Bank which urged it to devalue. But eventually, around the mid-1980s, they realised that they had the possibility of making even bigger financial gains if the country devalued and there were open markets, which would allow them to make money from trade or production. They were becoming a productive bourgeoisie.

Lofchie’s analysis can be contested. The benefits of the chaos that resulted from the extremely over-valued exchange rates of the 1980s were reaped by only a few. It is true that rapid growth followed from around 1990 to the present, but that is also due to the high price of gold on international markets and the rapid expansion of gold mining and tourism. There is still plenty of evidence of individuals making money illegitimately – corruption is ever present in the political discourse, and will continue to be so up till the Presidential elections due in October 2015.

A challenge for the ruling class in Tanzania, leaving the 1970’s, was would they be able to convert their economic strategies into meaningful growth and benefits for the population? By 2011 the challenge was even more acute, because very large reserves of gas had been discovered off the coast of Southern Tanzania, so money for investment would no longer be a binding constraint. But would those resources be used to create real assets which would create the prerequisites for rapid expansions in manufacturing, services and especially agriculture? Or would they be frittered away through imports of non-productive machinery and infrastructure (such as the non-existent electricity generators purchased through the Richmond Project in 2006 in which several leading members of the ruling political party were implicated)? Or end up in Swiss bank accounts? The jury is very much still out. To achieve the current ambition of a rapid transition to a middle income country will require much greater understanding of engineering, agricultural science, and much better contracts than have been recently achieved – and more proactive responses to the challenges of corruption. It will need to take its own political economy seriously.

Headline image credit: Tanzania – Mikumi by Marc Veraart. CC-BY-2.0 via Flickr.

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By Garry Rodan

When Benigno Aquino III was elected Philippine President in 2010, combating entrenched corruption was uppermost on his projected reform agenda. Hitherto, it has been unclear what the full extent and nature of reform ambitions of his administration might be. The issue has now been forced by ramifications from whistleblowers’ exposure of an alleged US$224 scam involving discretionary funds by Congress representatives. Fallout has already put some prominent Senators in the hot seat, but will deeper and more systemic reforms follow?

A crucial but often overlooked factor shaping prospects for reform in the Philippines, and elsewhere, is contestation over the meaning and purposes of accountability. Accountability means different things to different people. Even authoritarian rulers increasingly lay claim to it. Therefore, whether it is liberal, moral or democratic ideology that exerts greatest reform influence matters greatly.

Liberal accountability champions legal, constitutional, and contractual institutions to restrain the ability of state agencies to violate the political authority of the individual. Moral accountability ideologues emphasize how official practices must be guided by a moral code, invoking religious, monarchical ethnic, nationalist, and other externally constituted political authority. Democratic accountability ideologies are premised on the notion that official action at all levels should be subject to sanction, either directly or indirectly, in a manner promoting popular sovereignty.

Anti-corruption movements usually involve coalitions incorporating all three ideologies. However, governments tend to be least responsive to democratic ideologies because their reforms are directed at fundamental power relations. The evolving controversy in the Philippines is likely to again bear this out.

What whistleblowers exposed in July 2013 was an alleged scam masterminded by business figure Janet Lim Napoles. Money was siphoned from the Priority Development Assistance Fund (PDAF), or ‘pork barrel’ as it is popularly known, providing members of Congress with substantial discretionary project funding.

This funding has been integral to political patronage and corruption in the Philippines, precisely why ruling elites have hitherto resolutely defended PDAF despite many scandals and controversies linked to it.

However, public reaction to this scam was on a massive scale. Social and mass media probing and campaigning combined with the ‘Million People March’ in Manila’s Rizal Park involving a series of protests starting in August 2013. After initially defending PDAF despite his anti-corruption platform, Aquino announced PDAF’s abolition. Subsequently, the Supreme Court reversed three earlier rulings to unanimously declare the PDAF unconstitutional for violating the separation of powers principle.

Then, on 1 April 2014, the Office of the Ombudsman (OMB) announced it found probable cause to indict three opposition senators – including the powerful Juan Ponce Enrile, who served as Justice Secretary and Defense Minister under Marcos and Senate President from 2008 until June 2013 – for plunder and multiple counts of graft for kickbacks or commissions channeled through bogus non-governmental organizations (NGOs).

These are the Philippines’ first senatorial indictments for plunder, conviction for which can lead to life imprisonment. Napoles and various state officials and employees of NGOs face similar charges. Aquino’s rhetoric about instituting clean and accountable governance is translating into action. But which ideologies are exerting greatest influence and what are the implications?

Moral ideology influences were evident under Aquino even before the abolition of PDAF through new appointments to enhance the integrity of key institutions. Conchita Morales, selected by the President in mid-2011 as the new Ombudsman, was strongly endorsed by Catholic Church leaders. Aquino also appointed Heidi Mendoza as a commissioner to the Commission of Audit. Mendoza played a vital whistleblower role leading to the resignation of the previous Ombudsman Merceditas Gutierrez and was depicted by the Church as a moral role model for Christians.

However, there have been many episodes in the past where authorities have selectively pruned ‘bad apples,’ but with a focus on those from competing political or economic orchards. Will Aquino this time go beyond appeals to moral ideology and intra-elite combat to progress liberal institutional reform?

The accused senators ask why they have been singled out from 40 named criminally liable following the whistleblowers’ claims, inferring political persecution. Yet if continuing investigations lead to charges against people closer to the administration it would indicate not. In a clear alignment with liberal ideology, Communications Secretary Herminio Coloma recently raised expectations of such a change: ‘We are a government of laws, not of men. Let rule of law take its course.’

The jury is still out too on just how substantive the institutional change to the PDAF will prove. The President’s own pork barrel lump sum appropriations in the national budget are unaltered, despite public calls for it too to go. Indeed, some argue the President is now even more powerful a pork dispenser through de facto PDAF concentration in his hands.

PDAF’s abolition is also in a transitional phase with the 2014 budget taking account of existing PDAF commitments. The P25-billion PDAF was directed to the major public funding implementing agencies incorporating these commitments on a line item basis. There is a risk, though, that a precedent has been set for legislators’ pet projects to be negotiated with departmental heads in private rather than scrutinized in the legislature.

Certainly the coalition for change is building. Alongside popular forces, internationally competitive globalized elements of the Philippines bourgeoisie are a growing support base for liberal accountability ideology. Yet longstanding inaction on corruption reflects entrenched power structures inside and outside Congress antithetical to the routine and institutionalized promotion of liberal and, especially, democratic accountability.

Thus, while the instigation of official action on the pork barrel scam following the whistleblowers’ actions is testimony to the power of public mobilizations and campaigns, there are serious obstacles to more effective accountability institutionalization promoting popular sovereignty.

Acute concentrations of wealth and social power in the Philippines not only affect relationships between public officials and some elites, they also fundamentally constrain political competition. Oligarchs enjoy massive electoral resource advantages including the capacity for vote buying and other questionable campaign strategies. Outright intimidation, including extrajudicial killings of some of the most concerted opponents of elite rule and vested interests, remains widespread.

Therefore, parallel with popular anti-pork demands is yet another push for Congress to pass enabling law to finally give effect to the provision in the 1987 Constitution to ban political dynasties. The proliferation of political dynasties and corruption has been mutually reinforcing. Congressional dominance by wealthy elites and political clans shapes the laws overseen by officials, the appointment of those officials and, in turn, the culture and practices of public institutions.

When Congress resumes sessions in May, it will have before it the first Anti-Dynasty Bill to have passed the committee level. Public mood has made it more difficult for the rich and powerful in Congress to be as dismissive as previously of such reform attempts. The prospects of the current Bill passing are nevertheless dim but the struggle for democratic accountability will continue.

Garry Rodan is Professor of Politics & International Studies at the Asia Research Centre, Murdoch University, Australia and the co-author (with Caroline Hughes) of The Politics of Accountability in Southeast Asia: The Dominance of Moral Ideologies.

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Image credit: Dollars in envelope. By OlgaLIS, via iStockphoto.

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By William Chislett

The good news is that Spain has finally come out of a five-year recession that was triggered by the bursting of its property bubble. The bad news is that the unemployment rate remains stubbornly high at a whopping 26%, double the European Union average.

The scale of the property madness was such that in 2006 the number of housing starts (762,214) was more than that of Germany, France, and Italy combined. This sector, to borrow the title of a novel by Gabriel García Márquez, was a Chronicle of a Death Foretold. There are still an estimated more than one million new and second hand unsold homes.

The excessive concentration on the property sector, as the motor of an economy that boomed for a decade, created a lopsided economic model and fertile ground for corruption. When the sector crashed as of 2008 and house prices plummeted, 1.7 million people lost their jobs in construction out of a total of 3.7 million job losses in the last six years, households were left with mortgages they could not pay and property development companies unable to service their bank loans. This, in turn, severely weakened parts of the banking system which had to be rescued by the European Stability Mechanism with a €42 billion bailout programme. Spain exited the bail-out in January, but bad loans still account for more than 13% of total credit, up from a mere 0.7% in 2006.

Spain has emerged from recession thanks largely to an impressive export performance, achieved through an “internal devaluation” (lower unit labour costs stemming from wage cuts or a wage freeze and higher productivity). As a euro country, Spain cannot devalue. Merchandise exports rose from €160 billion in 2009 to €234 billion in 2013, an increase equivalent to more than 7% of GDP. This growth has been faster than the pace of powerhouse Germany, albeit from a smaller base. Exports of goods and services rose from 27% of GDP in 2007 to around 35% last year. The surge in exports combined with the drop in imports and a record year for tourism, with 60 million visitors, turned around the current account, which was in surplus for the first time in 27 years. In 2007, the current account recorded a deficit of 10%, the highest in relative terms among developed countries.

Unemployment is the most pressing problem. The depth of the jobs’ crisis is such that Spain, which represents 11% of the euro zone’s economy and has a population of 47 million, has almost 6 million unemployed (around one-third of the zone’s total jobless), whereas Germany (population 82 million and 30% of the GDP) has only 2.8 million jobless (15% of the zone’s total). Germany’s jobless rate is at its lowest since the country’s reunification, while Spain’s is at its highest level ever.

Mariano Rajoy

Young Spanish adults, particularly the better qualified, are increasingly moving abroad in search of a job, though not in the scale suggested by the Spanish media which gives the impression there is a massive exodus and brain drain. One thing is the large flow of those who go abroad, especially to Germany, and return after a couple of months; another the permanent stock of Spaniards abroad (those who stay beyond a certain amount of time), which is surprisingly small. According to research conducted by the Elcano Royal Institute, Spain’s main think tank, between January 2009 and January 2013, the worst years of Spain’s recession, the stock of Spaniards who resided abroad increased in net terms by a mere 40,000, which is less than 0.1% of Spain’s population, to 1.9 million. These figures are based on official Spanish statistics cross-checked with data in the countries where Spaniards reside. The number of Spaniards living abroad is less than one-third the size of Spain’s foreign-born population of 6.4 million (13.2% of the total population). Immigrants in Spain are returning to their country of origin, particularly Latin Americans.

Spain’s crisis has also resulted in a long overdue crackdown on corruption. There are around 800 cases under investigation, most of them involving politicians and their business associates. Spain was ranked 40th out of 177 countries in the 2013 corruption perceptions ranking by the Berlin-based Transparency International, down from 30th place in 2012. Its score of 59 was six points lower. The nearer to 100, the cleaner the country. Spain was the second-biggest loser of points, and only topped by war-torn Syria. The country is in for a long haul.

William Chislett, the author of Spain: What Everyone Needs to Know, is a journalist who has lived in Madrid since 1986. He will be talking on his book at the Oxford Literary Festival on 29 March. He covered Spain’s transition to democracy (1975-78) for The Times of London and was later the Mexico correspondent for the Financial Times (1978-84). He writes about Spain for the Elcano Royal Institute, which has published three books of his on the country, and he has a weekly column in the online newspaper El Imparcial. He has previously written on Spanish unemployment and Gibraltar for the OUPblog.

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Image credits: (1) Spanish Falg By Iker Parriza. CC-BY-SA-3.0 via Wikimedia Commons (2) Mariano Rajoy By Gilad Rom. CC-BY-SA-3.0 via Wikimedia Commons

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By Paul Strohm

Among ethical concepts, conscience is a remarkable survivor.  During the 2000 years of its existence it has had ups and downs, but has never gone away.  Originating as Roman conscientia, it was adopted by the Catholic Church, redefined and competitively claimed by Luther and the Protestants during the Reformation, adapted to secular philosophy during the Enlightenment, and is still actively abroad in the world today.  Yet the last few decades have been cloudy ones for conscience, a unique time of trial.

The problem for conscience has always been its precarious authorization.   It is both a uniquely personal impulse and a matter of institutional consensus, a strongly felt personal view and a shared norm upon which all reasonable or ethical people are expected to agree.   As a result of its mixed mandate, conscience performs in differing and even contradictory ways.   It lends support to the dissenting individual or exponent of unpopular or even aberrant claims.  But it is also summoned in support of the norm, and broadly accepted ethical standards.

Each of these authorizations—the personal and the institutional—has its pitfalls.  The fervent individual, summoned by burning personal conviction about the rightness of his or her cause, lies open to suspicions of solipsism or arrogance. But, on the other hand, institutionally or state-sponsored conscience, or conscience speaking for settled public opinion, risk complacency or ethically stunted orthodoxy.  One recalls the predicament of Huckleberry Finn, who suffers what he identifies as conscience pangs for his decision to assist Jim to escape from enslavement, when this bourgeois or ‘churchified’ conscience is obviously a false friend and enemy to his superior ethical intuitions.

Despite such issues, conscience remains a force for much good in the world.  Its most crucial function, and perhaps the one most in need of support, is its encouragement to the private  individual struggling with institutional tyrannies—most dramatically, with various forms of state tyranny.  We have witnessed the incarceration and continued surveillance of China’s Ai Weiwei.  Ai has recently been called ‘China’s conscience’, but his more urgent need might be less public and more personal, the need to enjoy his own conscience undisturbed by governmental or other external intervention.  Remarkable individuals like Ai have proven willing to endure sacrifice for conscientious belief–and sacrifice they have.   Recently Lasantha Wickramatunge, a courageous Sri Lankan journalist, gave his life to expose corruption.  He wrote a farewell dispatch, which amounted to his own obituary letter, which concluded, ‘There is a calling that is yet above high office, fame, lucre and security.  It is the call of conscience.’ Salman Taseer, governor of the Punjab province in Pakistan, declared in a 1 Jaunary 2011 television interview that ‘If I do not stand by my conscience, then who will?’—three days before his assassination. Less dramatically, but still tellingly, one may consider some of the smaller cases of conscience that people confront daily.  Explaining his break with his political party to support a faltering gay marriage bill, Fred W. Thiele Jr, a  New York state Assemblyman, explained, ‘There’s that little voice inside of you that tells you when you’ve done something right, and when you’ve done something wrong. . .  That little voice kept gnawing away at me.’ 0 Comments on Conscience today as of 1/1/1900