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The European Union in the Process of Combating

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The European Union in the Process of Combating TALLINN UNIVERSITY OF TECHNOLOGY School of Business and Governance Department of Law Andreea Cristina Prasacu THE EUROPEAN UNION IN THE PROCESS OF COMBATING CORRUPTION – CASE STUDY ROMANIA Master's thesis Supervisor: Prof. Peeter Müürsepp Tallinn 2017 I have written the Bachelor's/Master's thesis independently All works and major viewpoints of the other authors, data from other sources of literature and elsewhere used for writing this paper have been referenced. Andreea Cristina Prasacu ................................... (signature, date) Student‟s code: 157334TASM E-mail address: [email protected] Supervisor Prof. Peeter Müürsepp: The thesis conforms to the requirements for the master's theses ..................................................... (signature, date) Chairman of the Defence Committee Permitted to defence ……………………………….. (Title, name, signature, date) 2 TABLE OF CONTENTS ABSTRACT ......................................................................................................................... 6 INTRODUCTION ................................................................................................................ 7 1. METHODOLOGY ......................................................................................................... 11 1.1. Research Methods: Case study and Critical discourse analysis .............................. 11 1.1.1. The aims of case study ..................................................................................... 12 1.1.2. Critique of case study ....................................................................................... 13 1.1.3. Critical discourse analysis ................................................................................ 13 1.1.4. Critical discourse Analysis aims ...................................................................... 15 1.1.5. Critique of Critical Discourse Analysis ............................................................ 16 1.2. Theoretical Framework: Social Indicators .............................................................. 17 2. CORRUPTION PROCESS IN ROMANIA ................................................................... 22 2.1. Corruption in the socialist regime and before EU ................................................... 22 2.2. EU involvement ...................................................................................................... 25 2.3. Corruption after EU ................................................................................................ 28 3. ANALYSIS .................................................................................................................... 34 3.1. EU Cooperation and Verification Mechanism ........................................................ 36 3.2. Particularistic Political Culture in Romania............................................................ 40 3.3. Good Governance Indicators .................................................................................. 45 CONCLUSIONS ................................................................................................................ 51 REFERENCES ................................................................................................................... 56 APPENDICES .................................................................................................................... 62 Appendix 1. Worldwide governance indicator „Voice and Accountability‟ 2007-2015 Romania ..................................................................................................................................... 62 Appendix 2. Worldwide governance indicator „Governance Effectiveness‟ 2007-2015 Romania ..................................................................................................................................... 63 Appendix 3. Worldwide governance indicator „Rule of Law‟ 2007-2015 Romania ..... 64 3 Appendix 4. Worldwide governance indicator „Control of Corruption‟ 2007-2015 Romania ..................................................................................................................................... 65 4 LIST OF ABREVIATIONS ALDE – Alliance of Liberals and Democrats ANI – National Agency for Integrity CPI – Corruption Perception Index CVM – Cooperation and Verification Mechanism DGA – Anti-Corruption General Directorate DNA – National Anti-Corruption Directorate IMF – International Monetary Fund OECD – Organisation for Economic Co-operation and Development OUG – Government Emergency Ordinances PSD – Social Democratic Party WGI – Worldwide Governance Index 5 ABSTRACT The research identifies an informative gap between EU published reports about corruption in Romania and the actuality. Previous to joining the EU, Romania was subjected to certain accession conditionality‟s aimed at tackling the issue of corruption, but constant scandals still appeared. Therefore, conducting a research about the progress of eradicating corruption published in EU reports and the reality provides insights into the changes that need to be made. This will help to make those measures more successful. The methodology used includes a case study approach and a critical discourse analysis. This combination was chosen due to the nature of the research problem, which requires the application of policy within a context. Thus, understanding how corruption manifests in Romania is critical and analysing the various reports and measures is essential. Furthermore, social indicators allow for implicating the human factor which is a fundamental influence in corrupt behaviour. The final results show a slight discrepancy in the reports published by the EU and measures of combating corruption in Romania. This has been identified as being due to the exclusion of the particularistic cultural factor heavily present, but also due to the implementation of anti-corrupt measures, institutions, programmes etc. via networks which have already succumbed to corruption. In conclusion, the overall thesis of the paper was found to be true to the extent that the informative gap is not enormous, but what is missing may be of great importance in diminishing corruption in Romania. Keywords: European Union, Romania, corruption, Cooperation and Verification Mechanism, governance. 6 INTRODUCTION When a country is well governed, poverty and mean condition are things to be ashamed of. When a country is poorly governed, riches and honour are things to be ashamed of. (Confucius) The Republic of Romania transitioned towards democracy after one of the most violent revolutions in Europe which took place in 1989. The uprisings put an end to the suppressive socialist regime led by autocratic leader Nicolae Ceaușescu. In the years that followed additional protests and altercations with authorities occurred, leading to a frequent exchange of powers. The fall of communism had a substantial impact on the country as on the night of 22 December 1989 the state structure was destroyed and without a plan a replacement plan it left the country in a state of institutional fluidity permitting it to produce new democratic structures and political representations (Papadimitroiu & Phinnemore 2008). Nonetheless, it could be argued that the newly introduced democratic political regime was still connected to the former system and kept hold of a corrupt, post-communist mentality. Furthermore, the need of state-controlled industries paved the way for party-control to seize power as well as for corruption to grow. Also, poor governance and overall bad decisions, slowed advancement and reduced development. It took Romania a number of years to realise the importance of the private sector and the role it plays in development, as during communism entrepreneurship did not exist. In the period after the revolution, citizens were relieved to escape from the ruthless regime of Ceaușescu and looked hopefully to the Western nations for help. It was very difficult for Romanians to acclimatize to a new social system, as the entire communistic scene evolved around the workers. Now the population had to collaborate with the elites and 7 pursue strategies beneficial to the country as well as the individual. It was undeniable that the new reforms would be difficult as they would create friction at the social level. It would become a challenge for the country to implement a new system with working political and economic reforms in a restricted amount of time. Moreover, the fall of the socialist system led to a decline in industrial output resulting in the collapse of several major industries, which needed to be rescued. According to Crăciun (2014, 4): […] the communist modernisation paradigm had linked urban development to urbanisation of the country, a significant number of small and medium cities which had grown due to the industries were now ailing. Almost no city was exempt from the repercussion of this scheme and most of them never recovered. However, during the transition towards a democratic political system they provided an opportunity for the EU to pursue economic migration. Rising from the wreckage left by Ceaușescu and his regime became a challenge for the country. However, in 1990s, Romania began to see a light at the end of the tunnel and with the turn of the millennium, the country experienced economic growth. By mid-2000s, Romania affirmed to the transformational effects associated with the EU accession guidelines (Papadimitroiu & Phinnemore 2008). Nevertheless, the initial accession discussions originated already in 1999
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