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Item type:Publication, The effects of corruption on growth, human development and natural resources sector: empirical evidence from a Bayesian panel VAR for Latin American and Nordic countries(Emerald, 2021-03-08)The of this paper is to analyze the effects of corruption on economic growth, human development and natural resources in Latin American and Nordic countries. Design/methodology/approach Using the hierarchical prior of Gelman et al. (2003), a Bayesian panel Vector AutoRegression (VAR) model is estimated. In addition, two alternative approaches are considered, namely, a panel error correction VAR model and an asymmetric panel VAR model. Findings The results reveal some relevant contrasts: (1) in Latin America there is support for the sand the wheels hypothesis in Bolivia and Chile, support for the grease the wheels hypothesis in Colombia and no significant impact of corruption on growth in Brazil and Peru, while in Nordic countries the response of growth to shocks in corruption is negative in all cases; (2) corruption negatively affects human development in all countries from both regions; (3) corruption tends to spur natural resources sector in Latin American countries, while it is detrimental for natural resources sector in Nordic countries. Research limitations/implications The panel VAR approach uses recursive scheme identification. The authors have analyzed robustness using alternative ordering of the variables. The authors also have followed two alternatives suggested by the Referee: a panel error correction VAR model and a panel asymmetric VAR model. However, another more sophisticated identification scheme could be used. Also other variables could be introduced in the VAR model. Practical implications Regardless of the issue of the “grease” vs the “sand the wheels” debate, corruption should be reduced because it is anyway harmful for human development. The differences in the results for Latin American and Nordic countries show that the effects of corruption have to be assessed considering the different institutional and economic conditions of the countries analyzed. Social implications Governments should seek to reduce corruption because, despite corruption can have mixed effects on economic growth in some contexts, it is anyway harmful for human development. Besides, the finding that in some Latin American countries more activity in the extractive industries is generated by means of corruption confirm the association between corruption and extractivism found by Gudynas (2017) and can explain why there are issues of environmental damage and social conflict linked to natural resources in those countries. Originality/value The present study contributes to the literature by presenting evidence on the effects of corruption on growth, human development and natural resources sector in Latin American and Nordic countries. It is the first study on economics of corruption which directly compares Latin American and Nordic countries. This is relevant because there are important differences between both regions since Latin American countries tend to suffer from widespread corruption, while the Nordic ones have a high level of transparency. It is also the first in using a Bayesian panel VAR approach in order to evaluate the effects of corruption. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, A cracked public administration in Peru: How “Vacunagate” has shaken the foundations of an already damaged society(EAFIT University, 2022-12-12)While crises are ubiquitous in Latin America, due to its geographical characteristics as well as its turbulent business environment, countries such as Peru have also extreme rates of corruption and deep institutional weakness. These factors, taken together, undermine any attempt of national governments or society’s collective efforts towards achieving sustainability. This paper aims to analyze the “Vacunagate” scandal that occurred in Peru during the first negotiations of the vaccination process against COVID-19, using a case study method, and focusing our discussion from the Agency Theory as well as from leadership and institutional perspectives. The results of the analysis emphasize how the “Vacunagate” event generated relevant constraints towards the achievement of the SDG 16, and its specific targets related to provide justice for all, deal with organized crime, reduce corruption, and create accountable institutions. In addition, the study provides insights and implications for organizations in Peru that would have to operate under a turbulent business environment, considering a business-as-usual corruption and a weak institutional context. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Transfer and interruptions in anticorruption policies in Guatemala (2013–2019)(SAGE Publishing, 2024-10-23)Guatemala ranks last in the region in terms of the penetration and perception of state corruption ranking 149th out of 180 countries. Therefore it has promoted anti-corruption initiatives such as the International Commission Against Impunity (CICIG 2007–2019). The CICIG was a unique public policy initiative worldwide with international community support and significant progress in reducing corruption. However what were the main failures encountered during the implementation process of the CICIG? This comparative individual case study analyzes two factors: sustainability and capacity building. The explanations for the CICIG’s disruptions are not understood exclusively as the absence of state capacity much less because of its design. My qualitative research delves into endogenous political contexts (client networks resilience). The research identifies some fissures in implementation and draws lessons that can be extrapolated to public policy in Latin America. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Corrupting Climate Change Institutions from the Inside: Systemic Collusion in the Peruvian Forest Governance(Elsevier BV, 2023-11-28)This article aims to contribute to the literature on natural resource corruption by analyzing the subnational political economy behind the little enforcement of anticorruption policies. Building on the political ecology approach to corruption, this article focuses on how economic and political interest colludes in a hybrid or ambivalent system that reproduces over and over corrupt practices. Zooming on the subnational case of Ucayali, we find four main factors contributing to understanding the poor enforcement of subnational governments of new forest regulations to reduce deforestation. The first one is infrastructural capacity, which is essential to understand the issue at hand, but it alone is insufficient to comprehend the systemic corruption in the forest sector. A second factor is the decentralization process and the subnational political economy. Our analysis shows the importance of economic and political dynamics at the subnational level in shaping national anti-corruption and deforestation reforms. A third element to consider is the divergent perspectives on the development of the Amazon. While in Peru, the environmental sector has witnessed significant growth at the national level, it still holds limited political influence. Conversely, positions advocating for economic activities that adversely impact the Amazon forest, such as extensive agriculture, exert more control over the region. A fourth factor is the historical marginalization of indigenous groups, who can serve as valuable allies in driving reforms. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, When electoral reforms backfire: reassessing reelection's impact on corruption(Springer Science+Business Media, 2026-01-01)This article evaluates the effect of prohibiting immediate reelection of subnational authorities in Peru on incentives for engaging in corruption through public procurement and investment expenditure. Using quantitative indicators derived from public contracting and investment expenditure data and applying interrupted time series models with fixed effects. Additionally, we conduct a placebo test, and sensitivity analysis across different reform timings, the study finds evidence suggesting that the reelection ban increased corruption risks at the subnational level. Specifically, the results show an increase in the percentage of projects with cost overruns and the proportion of expenditures executed through contracts below the supervision threshold of the State Contracting Supervisory Body (OSCE). These findings support predictions from the electoral accountability model, which argues that the possibility of reelection incentivizes politicians to align their preferences with those of citizens and refrain from rentseeking behavior. Overall, this study highlights the importance of considering not only electoral incentives in designing anti-corruption policies but also broader institutional and organizational reforms.