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, 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

Affiliate Fellow

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

matilda.sevon@bruegel.org

Read about event More on this topic

Past Event

Past Event

Bank assets and business models: addressing complexity

At this event, we discussed the lack of transparency and problems in valuing correctly significant parts bank assets in the euro area based on an extensive study by the Bank of Italy.

Speakers: Simon Ainsworth, Paolo Angelini, Josina Kamerling, Martin Merlin, Alexander Lehmann and Nicolas Véron Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 21, 2018
Read about event More on this topic

Past Event

Past Event

The future of the EU budget: MFF post-2020

Which should be the priorities for the Multiannual Fiscal Framework post 2020?

Speakers: Roger Havenith, Günther H. Oettinger, Charlotte Ruhe, Margit Schratzenstaller-Altzinger and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 7, 2018
Read about event

Past Event

Past Event

(How) could European safe assets be constructed?

At this event we looked at the ESRB task force’s investigation on safe assets.

Speakers: Levin Holle, Sam Langfield, Anne A. Leclercq and Guntram B. Wolff Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 1, 2018
Read about event More on this topic

Past Event

Past Event

Bruegel - Financial Times Forum: The future of euro-area governance

The third event in the Bruegel - Financial Times Forum series looked into the future of euro-area governance.

Speakers: Maria Demertzis, Gideon Rachman, Manfred Weber and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 27, 2018
Read about event More on this topic

Past Event

Past Event

Is there life After TTIP? The future of transatlantic economic relations

The partnership between North America and Europe is becoming unsettled and uncertain. How can we deal with this new situation that threatens the prosperity and ultimately the position of North America and Europe in the global economy.

Speakers: Maria Demertzis, Daniel S. Hamilton, Luisa Santos and André Sapir Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 19, 2018
Read about event More on this topic

Past Event

Past Event

The implications of Blockchain platforms

The disruptive forces of block chain technologies in markets and industries: a European perspective

Speakers: Anna Dimitrova, Julio Faura, Georgios Petropoulos, Johan Pouwelse and Pēteris Zilgalvis Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 6, 2018
Read about event More on this topic

Past Event

Past Event

Europe’s immigration and integration challenges: Financial and labour market dimensions

The event, organised by Bruegel in cooperation with the Institute for International Affairs will discuss these and related questions and will also feature the launch in Rome of the study authored by Zsolt Darvas on the impact and integration of migrants in the European Union.

Speakers: Roberto Ciciani, Zsolt Darvas, Marcela Escobari, Tatiana Esposito, Manjula M. Luthria, Carlo Monticelli, James Politi and Nathalie Tocci Topic: European Macroeconomics & Governance Location: Banca Monte dei Paschi di Siena, Via Mighetti 30/A, Rome, Italy Date: February 2, 2018
Read about event More on this topic

Past Event

Past Event

Why think tanks matter in the era of digital and political disruptions

Bruegel is pleased to host this panel discussion as part of the global launch of the 2018 Global Go To Think Tank Index, published by the University of Pennsylvania’s Think Tanks and Civil Societies Program.

Speakers: Matt Dann, Shada Islam and Hlib Vyshlinsky Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 30, 2018
Read about event More on this topic

Past Event

Past Event

Integration of migrants in the EU

This event will discuss the integration of migrants in the EU as well as the EU's response to the recent refugee crisis

Speakers: Manu Bhardwaj, Herbert Brücker, Zsolt Darvas, Naika Foroutan, Marcel Fratzscher, Manjula M. Luthria and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Mohrenstraße 58, 10117 Berlin, Germany Date: January 29, 2018
Read about event

Past Event

Past Event

Corporate taxation in the digital era

How can we address digital taxation in the EU? Is the proposed "equalisation tax" on turnover the best policy to tackle the challenges posed by digital taxation?

Speakers: Johannes Becker, Dmitri Jegorov, Maria Demertzis, Stephen Quest, Stef van Weeghel and Georgios Petropoulos Topic: European Macroeconomics & Governance, Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 24, 2018
Read about event

Past Event

Past Event

A conversation with Jin Liqun, president of AIIB

We were pleased to host Jin Liqun, the president of Asian Infrastructure Investment Bank at Bruegel.

Speakers: Sven Biscop, Guntram B. Wolff and Jin Liqun Topic: Finance & Financial Regulation, Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 22, 2018
Read about event More on this topic

Past Event

Past Event

Energy digitalization: challenges and opportunities for the industry

What are the the industrial implications of Europe’s digital energy revolution? What new business models do we need to make the best of it? What policy frameworks do we need to facilitate this development?

Speakers: Laura Cozzi, Jean Jacques Marchais, Hans Nieman, Mark van Stiphout and Simone Tagliapietra Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 17, 2018
Load more posts