Political Corruption and Organizational Crime: The Grey Fringes of Democracy and the Private Economy (Organization, Management and Crime - Organisation, Management und Kriminalität)

Level of compliance - one of the most important prerequisites of good governance - varies widely across countries of the Global North and the less developed, Global South. Acts of non-compliance, such as electoral irregularities, dubious deals between private and public sectors, questionable role of the justice systems and financial scandals, though they vary greatly across countries, are an omnipresent reality of contemporary life. This volume has brought together a number of case studies of such deviant behavior in political, juridical and corporate fields, from several countries of Asia, Europe and South America, within a common framework. Instead of a moral approach based exclusively on the legality and illegality of the act, the authors of these essays dissect non-compliance analytically, taking culture and context into account. They argue that, while criminal and corrupt dealings deserve to be exposed by all means from an ethical point of view, seen from an interdisciplinary angle, one needs to probe deeper into the dynamic that leads to such non-compliance with the law in the first place. Preface Contents Contributors 1 Organisational Wrongdoing in Cross-National Perspective: Culture, Context and Comparative Theory Introduction Compliance in Political Transactions Compliance in Corporate Transactions and Regulatory Agencies Structure of the Volume Conclusion References Part I Political financing in Asia 2 Making Elections Work: Campaign Cash, Marketisation of Votes and Social Negotiation in India Introduction The Indian Context: Puzzling Resilience of a ‘Flawed’ Democracy Campaign-Cash, Non-compliance and the Politician: Three Dilemmas Two Sociological Perspectives on Illegal Campaign Financing Cash, Campaign Participation and Social Negotiation Reports from the Field Individual Rationality and Systemic Non-compliance: Self-correcting Mechanisms Conclusion: Rethinking Campaign-Cash and Electoral Democracy in Transitional Societies References 3 Democracy, Electoral Process and Campaign Expenditure in India: A Study of Election Campaign Expenditure in Chevella Parliamentary Constituency, Telangana State The Context and the Problem The electoral landscape of Chevella parliamentary constituency Candidates: Their Social Background and Financial Strength Election Campaign Expenditure Conclusion: Changing India References 4 Political Finance Regimes, Political Corruption and Party System Institutionalization in Southeast Asia Introduction Concepts and Data The Political Context Political Finance in Southeast Asia Variation in Finance Regulation in Southeast Asia Regulating Donations Public Subsidies Regulating Spending Reporting, Enforcing and Sanctioning Political Party and Campaign Finance in Reality Political Finance in Electoral Authoritarianism: Sustaining an Unleveled Playing Field Political Finance in Electoral Democracies: Systems of Organized Impunity? Political Finance and Party System Institutionalization Conclusions References Part II Political parties, elections and corruption in South America 5 ‘Culture’, Criminality and Collective Mindset: Political Financing in Brazil Introduction Operation Car Wash and the “Alethéia” Case Mapping Social Relations Between the Public and Private Sectors Political-Economic Interaction as a Growth Strategy Beyond Institutional Relations Construction Sector, Political-Economic Model and ‘Cultural’ Knowledge Institutional Changes and the Outside View Corruption: A Necessary Evil? Conclusion References 6 Fighting Criminal Corruption in Brazil: Its Potential Effects on the Electoral Arena Introduction Federal Justice in Brazil Institutional Design: Opening for Interference of the Criminal Justice System in the Electoral Competition Administrative Autonomy Jurisdiction (Competences) Interpretation and Application of Laws Deficiencies in the Checks and Balances Mechanisms Final Considerations References 7 Balancing Representation Political Financing: The Regulation of Competing Legal and Illegal Organizations Resources in Colombia Introduction Political Financing as a Matter of Citizens’ Representation The Case of Colombia: Context of the Reform From Bill to Law 1475/2011 Legal Electoral Financing by Illegal Actors Illegal Electoral Financing by Legal Actors Public Resources for Electoral Campaigns Funding Political Parties by the State Organization of Political Parties and the State Conclusion: Minimum Equality and Unequal Resources References 8 Corruption Trials in Argentina: Justice Delayed? Introduction State of the Art Data and Method Theoretical Appoach The Results of the Empirical Study Problem Analysis Possible Solutions Discussion of the Results Conclusion References Internet Sources 9 Money, Politics, and the Judicialization of Electoral Processes in Brazil: A Political Science Approach Introduction Judicialization of Politics, and Electoral Processes Money and Politics as Catalysts for Electoral Judicialization in Brazil Further Exploring Electoral Judicialization in Brazil: Potential Directions for Future Investigations Conclusion References 10 Misuse of Public Office for Organizational Gain? Brazilian Political Parties in Corruption Scandals Introduction Brief Account of Brazilian Political and Electoral Landscape An X-Ray of the Organizational Settings of the Two Parties Involved at Mensalão and Petrolão Progressive Party (PP) Workers’ Party (PT) Overview of the Two Corruption Scandals Mensalão Petrolão Discussion Individuals as the Unit of Analysis: Principal Agent or Collective Action? Inter-party Dynamics and the Role of Party Elites Conclusion References Internet Source Biographies 11 Lawyers as Enablers of Wrongdoing: Challenges Faced by Democracies Regarding Corruption and Money Laundering Introduction Ethical Dilemma: Lawyers as Gatekeepers The Relationship Between Corruption, Money Laundering, Lawyers, and Democracy Case Studies from Brazil The Legal Framework Discussion: Anti-money Laundering and Anti-corruption Measures Conclusion References Part III Political financing and corruption in Europe 12 Party Financing Scandals in the History of the Federal Republic of Germany: The “Flick” Affair and CDU Donations Affair References 13 Party Financing in Germany: A Critique Introduction Government Grants Substitute Parties as Recipients of State Funds No Limitations Public Control Switched off Weakening of Other Controls as Well Fully Funded State Parliaments Back to the Actual Parties Donations Prohibitions Transparency Urgent Reforms Party Taxes Government Share Almost 100 Percent The Federal Constitutional Court as Guardian of Competition Overall Evaluation 14 Criminal Liability for Corruption in German Parliaments Introduction Political Corruption in Criminal Law Frequency of Occurrence Criminal Liability Conclusion 15 The Financing of French Political Life: From Self-control to Self-interested Regulation Introduction To What Extent Has France Been Slow to Codify These Rules and Why? How Politicians Became Co-producers of Political Finance Rules with Loopholes To What Extent Does the Development of Rules Claiming to Govern Political Finance Lead Candidates and Leaders of Partisan Organizations to Learn to Formally Comply with these Rules? Conclusion References 16 Non-compliance, Organizational Deviance and Useful Illegality: Towards a Unified Agenda of Research Introduction The Lessons Learnt ‘Partial Compliance’ as Integral to the Political Process Electoral Laws and Regulatory Institutions as ‘Recipe Knowledge’ ‘Campaign Cash’ as Catalyst of Electoral Participation Making Elections Work Organizational Deviance as an Incentive for Designing ‘Appropriate’ Institutions The Tension Between Local Knowledge and Global Norms, and the Hermeneutic of ‘Wrongdoing’ An Agenda for Future Research References