working paper CORRUPTION Susan Rose-Ackerman Rory Truex Corruption and Policy Reform Working Paper Prepared for the Copenhagen Consensus Project April 27, 2012 Susan Rose-Ackerman1 and Rory Truex2 Contact information: Susan Rose-Ackerman Yale Law School PO Box 208215 New Haven CT 06520-8215 Susan
[email protected] 1 Henry R. Luce Professor of Jurisprudence (Law and Political Science). Yale University 2 Doctoral student in Political Science, Yale University. The authors are grateful for the comments of Tina Søreide. 1 Policies designed to improve the quality of life for the poor and to spur economic growth often fail. A program that succeeds in one country or even in one village may not work in another. Promising experiments may not be capable of replication and may be impossible to scale up to cover an entire country. Reformers are told: “One size does not fit all.” Yet, problems of poor health, low educational attainment, degraded natural environments, and violence and crime are widespread. Why shouldn’t similar policies work in various settings? We argue that, over and above substantive differences, a key reason for cross- country differences in policy efficacy is the quality of government and the ubiquity of corruption and related forms of self-dealing by politicians, civil servants, and the private individuals and business interests with whom they interact. A policy that works quite well in one country may fail or be coopted in another with lower quality governance. Understanding the incentives for corruption and self-dealing is a precondition for making progress on the other challenges facing the world.