Backstage Democracy : The Dynamics of Business-Politics Nexus in Lithuania

This book investigates how the actual dynamics of business-state relations work in a democracy and their changes overtime. The focus is limited to one country because access to high-level sources, who are able to openly discuss the nature of the business-politics nexus, cannot be easily replicated. The study is distinctive in a number of ways. First, its focus on politics and business touches upon a number of academic disciplines – business sciences, political science, public policy and administration. Second, it is not limited to a static picture of a relatively new democracy, but instead examines the dynamics of change over the last twenty years. As such, it talks to situations in a number of other countries, especially those in Central and Eastern Europe and the post-Soviet space. Third, the methodological approach, which combines anonymous interviews, mass media sources, governmental and non-governmental reports, is not very typical and thus provides a relatively fresh perspective on studying such social phenomena. Finally, the study offers original theoretical and analytical frames that can be conveniently applied and tested in other national/regional contexts. These and other features make it a valuable resource in higher education settings, offering a case study at hand, which can be used in courses on corruption, business ethics, democracy, EU studies, areas studies focused on Central and Eastern Europe or the post-Soviet space. A welcome and relevant study with an innovate approach, this book provides a sharp insight into processes of business-politics relations within Lithuanian society and does so from a wide perspective. A well-designed research that gives the ability to grasp the depth of the problems and makes a useful reading both for researchers and international policy makers. Laurynas Paktaitis, Mykolas Romeris University, Lithuania Ainius Laas reveals the world of informal networks and shady arrangements that represent the blind spots of mainstream political science. He guides us through backstage democracy in a theoretically competent and empirically responsible manner. His understanding of informal politics is unique and his conclusions make us hope that the marriage of business and politics does not inevitably result in dirty togetherness. Jan Zielonka, Professor of European Politics at the University of Oxford, UK, and Ca' Foscari University of Venice, Italy This book investigates how the actual dynamics of business-state relations work in a democracy and their changes overtime. The focus is limited to one country because access to high-level sources, who are able to openly discuss the nature of the business-politics nexus, cannot be easily replicated. The study is distinctive in a number of ways. First, its focus on politics and business touches upon a number of academic disciplines business sciences, political science, public policy and administration. Second, it is not limited to a static picture of a relatively new democracy, but instead examines the dynamics of change over the last twenty years. As such, it talks to situations in a number of other countries, especially those in Central and Eastern Europe and the post-Soviet space. Third, the methodological approach, which combines anonymous interviews, mass media sources, governmental and non-governmental reports, is not very typical and thus provides a relatively fresh perspective on studying such social phenomena. Finally, the study offers original theoretical and analytical frames that can be conveniently applied and tested in other national/regional contexts. Ainius Laas is the Dean of the Faculty of Social Sciences, Arts and Humanities at Kaunas University of Technology, Lithuania. His research focuses on informal political culture and its practices in transitional democracies. Preface 7 Praise for Backstage Democracy 10 Contents 11 Abbreviations 12 List of Figures 14 List of Tables 15 1 Introduction 16 2 Concepts 21 Actor Discretion 22 Scope of Discretion 31 3 Context and Methodology 39 Context 40 Methodology 47 4 Practices in Practice 51 Core Agents 52 Discretionary Practices 57 Employing Influential Politicians, Bureaucrats and Experts (LU4, LU6, LU9) 58 Acquisition of Party Status (LU5) 63 Legislative Proposals (LU2, IU1) 64 Access to Voters (LU7) 66 Milking the State’s Real Estate (LU15, IU10) 69 Ignoring Laws (IU11, IU12) 71 Intentional Negligence (IU7) 75 Evading Regulation: Funds Through Funds (LU10, LU11, IU6) 76 Small Favors and Gifts (LU1, LU3, LU13) 80 Pet Projects (LU12, LU14) 82 Leadership Unplugged (IU1, IE2, IU14) 88 Applying Psychological Pressure (IU15, IU16) 94 Political Racketeering (IU5) 96 Nepotism or “Landing Platforms” (IU8, IU14) 97 Courts as Networks of Friends (LU8) 102 Leakage of Information (IU2, IE1, IU3) 105 Abuse of Media Power (IU3, IU4, IU13) 107 5 Drivers of Continuity 122 Entrenched Power Networks 123 Hierarchical Organizational Cultures 138 Fragmentation of Power 145 6 Drivers of Change 151 Legislative and Procedural Gaps 152 Fragmentation of Power 158 Role of Technology 161 EU and Other IOs 164 Local Pressure Institutions 169 7 Evaluating Exclusive Situationalism and Its Broader Horizons 174 Concepts Under Scrutiny 175 Broader Horizons of Situationalism 178 Incentives for Change 178 Beyond Incentives 182 Limitations and Future Research 188 8 Conclusions 192 Exhibit A: List of Interviewees 196 Exhibit B: MPs and Their Private (Business) Interests as Declared to Chief Official Ethics Commission for 2003 199 Index 202