Poverty and Corruption in Latin America, Callenges for a Sustainable Development Strategy
| Autor | Ana Estefanía Carballo |
| Cargo | Studying a PhD in Political Sciences in Centre for the Study of Democracy, University of Westminster, United Kingdom |
| Páginas | 41-65 |
41
O PE R A , N o 10
* e autor is studying a PhD in Political Sciences in Centre for the Study of Democracy, University of Westmins-
ter, United Kingdom; She has a Masters Degree in International Economy for Development from the University of
Applied Sciences, Berlin. Nowadays, she is working for Centro para la Implementación de Políticas Públicas para la
Equidad y el Crecimiento (), Argentina.
is article was received on August 13th, 2010. It was accepted on September 23rd, 2010. E-mail: aecarballo@gmail.
com
I. DO INSTITUTIONS MATTER FOR
DEVELOPMENT?
“Corruption hurts the poor disproportionately-
-by diverting funds intended for development,
undermining a government’s ability to provide
basic services, feeding inequality and injustice, and
discouraging foreign investment and aid.”
Ko Annan, conference for the United Nations
Convention against Corruption in 2003
1. It’s politics, stupid
In 1992, B C used a powerful
motto for his presidential campaign, in oppo-
sition to his rival G H. W. B. It’s
the economy, stupid, turned out to be a catchy
political phrase used to remind voters of the
importance of bringing more attention from
the government to the economy of the Uni-
ted States. Paraphrasing this motto, the title
of this section aims to draw attention to the
perspective of many economists who argue
that focusing on the economy alone does not
necessarily ensure sustained development.
Politics do matter for development. And espe-
cially corruption, an issue inherently involved
in politics all over the world.
In the quest for economic development,
political scientists, development economists
and politicians of all kinds and levels have
focused on the conditions that will ensure the
take-o of the economies all over the world,
guaranteeing better living conditions for the
population of every nation. Theories that
describe the need for a certain level of human
resources, capital ows, infrastructure or nan-
cial stability as a requirement for development
P C
L A: C
Pobreza y Corrupción en América Latina: Desafíos para
una estrategia de desarrollo sostenible
A E C*
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A CC O uN T Ab I l I T y : E ST u d I OS C Om P AR A d O S E N P O l Í T IC A SO C I A l
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1 For instance, the discussions maintained in the studies by G (1974) and H (1968), or the
studies of R- A () J (), G (), J () C
R-A (1995).
have shared the stage with those that consider
that ‘getting the politics right’ is a prerequisite
for development. As H & C (2002)
pointed out, the issue of the quality of political
institutions has been taken into account for
most of the late development economists.
ese authors present an analysis of the
evolution of development strategies in the
world since the establishment of the Marshall
Plan, showing how the issue of politics has
received growing attention. Development
thought, they argue, evolved from strategies
focused on the development of projects, in
the early 1950s to what they call development
“by the people” since the mid 1990s. is shift
in development strategies, boosted by the po-
licies promoted by international organizations
and civil society, presents a focus on the role of
citizenry to promote sustainable development,
requiring higher levels of transparency, anti-
corruption measures and accountability from
their governments. (H C, 2002).
At the same time, several schools of eco-
nomic thought have devoted part of their stu-
dies to analyze the eect of political institutions
and corruption in development. Sound insti-
tutions that build ecient strategies to avoid
the proliferation of corrupt practices have been
advocated for since the early days of economic
and political theory. eir roots can be found
back in time, for example in the work of M
W and his view on the role of the State
(N, 2003). As C and D (2004)
discussed, new institutionalists in economics
such as G M or D N
have argued the importance of the role of the
State institutions in the promotion of develo-
pment. (C & D, 2004: 176).
A focus on corruption and the political en-
vironment of development has also been taken
into account by, for example, the neoliberal
economists. e ideas sustained by authors like
L B, D L, A K,
T or B presented critiques to
the extension of state intervention with argu-
ments based on its harming eects deriving
in crowding out of private investment, or the
creation of opportunities for rent-seeking acti-
vities and corruption. Less involvement of the
state would imply less space available for the
ourishing of corrupt practices (D,
2006; C & D, 2004).
It is noticeable that throughout the last
decades of economic development thinking,
the analysis of the role of politics in the develo-
pment strategies has been gaining importance.
(H, 2008) H, after the 1990s,
this issue has received a particular boost. In the
words of D (2006) “As the geopolitical
rationale for supporting dictators waned, and
globalization, democratization, privatization
and stabilization became the objectives of the
new millennium, the rise of ocial corruption
has become the new enemy of western economic
security. It is a major threat because it puts in
jeopardy the successful realization of these new
goals” (D, 2006: 2). Even when
discussions from several decades ago1 show an
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