PSC 403J Final

Define "machine politics" and "political machines."

machine politics- manipulation of certain incentives to partisan political participation: favoritism based on political criteria in personnel decisions, contracting, and administration of law. political machines are systems that practice machine politics. party machines -

Explain why China was included in Johnston's chapter on official mogul corruption. What specific characteristics led him to put it there.

Strong economy, weak institutions. Penalty of being caught is extreme death Communist Party involution Rule of law plays a small role

What are some of the consequences of neo-patrimonial corruption?

-Any political crisis leads to economic instability. This political instability leads to violent conflict b/c the cost of losing power is so high. reinforces/magnifies inequality (like in movie), which makes the above statement more true all forms of corruption are worse b/c those in power have no motivation to even act like their distributing the resources. The support that the leaders pay off for protection (military) are likely to look elsewhere for money in the case of economic struggle (too few resources to maintain protection). As resources diminish, the amount of those who are actually served shrinks. This eventually results in mass revolt. Also, the neo-patrimonial system functions as an interest group. The government is very focused on getting money for itself. They even go so far as taking $$ bribes from the public for essential services. Elites are only looking to grow their personal fortune

Explain the three ways that corruption tends to be different in Africa.

1. Systemic - corruption affects every aspect of society and politics; almost everyone participates 2. Generalized- affects all sectors of society- personal, social, private, educational, political, and economical 3. Expensive- less organized and centralized than other regions so making a payment is not a guarantee that the person paying the bribe will receive the service in return; decentralization and lack of predictability lead to limited development and investment by foreign countries and firms

Briefly outline the four themes that run through US campaign finance reform history.

1.Reform efforts start with small reform - typically this will lead to a court case in which the SC decides the appropriate boundaries of these reforms and Congress responds 2. Usually reform in response to an event (not proactive), react to a single instance rather than dealing with the problem as a whole 3. 1st amendment main obstacle to reform. Buckley v. Valeo in which the court decided that money is a form of political speech which cannot be infringed on or limited. 4. usually has something to do with altering an existing system, rather that generating a new one

Take one specific example from The Last Hurrah and connect it to a characteristic of party machines.

An example of corruption within party machines in The Last Hurrah was when Skeffington appointed the banker as the fire commissioner. This was because the banker's father declined to loan money for the city to build a housing development that Skeffington wanted. Thus, the appointment was an attempt to get the loan through embarrassing the banker's father which ended up being successful. Clearly, the banker had no experience or knowledge necessary to be able to fulfill the duties of the job. As opposed to hiring an individual that was qualified and best for the job, he hired someone who was incapable but might provide political support and leverage in other political deals. As a result, the public is not well served by this decision and their interests are not represented or accounted for. This relates to party machines as those in power try to maintain, consolidate, or increase their power through means of using tools of government to get certain people and groups to support them electorally at the polls. Skeffington in this example used allocated funds solicited by blackmail in order to pay for housing developments in locations where the citizens would be incentivized to vote for him in his election.

Explain the "effort effect" and the "electoral effect" of campaign contributions in the United States. Do either constitute corruption? Why or why not?

electoral effect - interest groups attempt to affect legislative outcomes by helping those who hold issue positions similar to their own get elected to public office, reward good behavior effort effect - campaign contributions do not have an impact on votes, but bought time. monetary help by interest groups buy a member's involvement in a bill's movement through committees

What are the main differences between an on-the-spot and a long-term exchange?

An on the spot exchange is a fairly short term relationship. An example of this is having to pay a bribe to a police officer to not have to pay for a ticket. Since the exchange is short term, it has few ex ante or ex post costs. Arguably, the only cost is the ex ante cost of knowing that a bribe can take place and what an expected or appropriate size of the bribe would be. Long-term exchanges consist of corrupt exchanges that occur multiple times or over a long duration of time. An example of this is a government contract that has been paid for with a bribe. This type of exchange is more risky than short term exchanges because there are significant costs to assess whether the relationship might be useful to the firm (ex ante) and to verify that the relationship is going to continue to be beneficial to the firm after the contract has been consummated (ex post). In addition, the laws do not lay out terms and protections of contracts made. As a result, each individual who wants to participate in an exchange has to do significant research to determine if the costs will outweigh the potential benefit. The higher the unpredictability of corruption, the higher the information costs and the more likely it is that the information received about contracts is not going to be accurate.

Briefly explain the "gift theory" of campaign contributions. Do you consider this corruption? Why or why not.

Based on the anthropological and sociological literature on gift giving. No gifts are altruistic. Always an obligation to reciprocate. Works like market exchange over time. is absolutely corrupt. each time a gift is given, there is an obligation to reciprocate in the future used to build and protect important relationships relation to corruption - groups give money to build a relationship with someone in a position of power. - legislators do not respond right away

Explain how party machines can be an example of functional corruption.

Between 1870 and 1920, there was a large influx of immigrants to the US. This helped to create the urban party machine. These new citizens were viewed with optimism as a potential block of voters for anyone that wanted to control urban politics. The incentives and services that were controlled by the party machine were typically used to integrate new immigrants into society and the political system. In turn, immigrants would give their loyalty and offer their votes for the party tickets through the provision of apartment and jobs. In this way, party machines provided some mode of support for those who might have been disenfranchised in society. This can make party machines functional modes of corruption. However, the point has also been made that machines tended to produce as many low-paying jobs to maximize their potential voters. Thus, immigrants did not benefit as much as they could have if they organized around their collective best interest. The theory of functionalism states that corruption occurs during times of institutional development and serves to aid weak institutions. It refers to corruption within developing systems. Usually occurring in countries where formal institutions are weak and government red tape is excessive. This positive take on corruption maintains that corruption allows individuals to develop exchange relationships with government that helps get things done. Economic functionalism creates economic opportunities because it allows those who want to participate in economic exchanges to do so by bypassing excessive red tape. Example of 19th century US immigrants and how they were offered jobs and places to live by political parties for their support. This allowed them an economic opportunity. Integrative functionalism allows new groups to take advantage of avenues to become integrated in a larger society. Example is that the immigrants got involved in the political process, learned how it worked, and developed political loyalties. Institutional, encourages the development of formal political institutions, political parties, and a merit based bureaucracy. Example is same as integrative. Administrative functionalism which makes bureaucracies more flexible and provides higher incomes for public servants encouraging them to stay in certain positions solidifying developing regimes. Example is it took pressure off government to deal with the immigrant population until the institutions were capable.

Choose one of the case studies from Johnston's oligarch/clan chapter and explain why it was included. What specific characteristics led him to put that case there?

Corruption as pervasive, organized along clan lines, harmful to democratic and economic development, and linked to violence. Vladimir Putin granted criminal immunity to the Yeltsin family by quid pro quo. Many oligarchs had careers in the Soviet era nomenklatura and built empires. Clans are made of personal loyalists, opportunists, tycoons, criminals, and corrupt officials who receive money, opportunity, protection, and status. Kompromat, evidence of corruption, was used to threaten political rivals. Characteristics Organized crime was decentralized, non-hierarchical, and contributed to capital flight. Russian gangs provided protection under circumstances of insecurity. Organized crime was viewed as the most effective means of protection over corrupt police enforcement and legit private security. There was also ineffective investigations as well as a lack of prosecution. Markets without order: there was a bidding war for official influence which undermined credibility of state institutions as official privatizations were being launched. Vouchers were sold for little and the sale of state owned assets were rigged.

Define the Asian miracle and explain one of the theories for why it exists.

Corruption typically has a negative effect on economic growth. Many Asian countries have widespread corruption, however, this has not led to a decline in economic stability and growth as it has in other regions of the world. This is known as the Asian miracle. This is unusual because Asian governments still experience weak institutions, systemic corruption, rent-seeking officials, and crony capitalism. For example, citizens often have to give bribes in order to receive essential services in China. Yet, there are high levels of economic growth and FDI and even a reduction in poverty over time. The Asian Miracle can be explained in part because corruption in Asia is a fixed cost wherein corruption in other regions such as Africa is a variable cost. In other words, firms think that Asian corruption is safer because it is more predictable. Ex ante costs must be paid before the contract is made, consisting of determining who the players are, what level and type of bribe they would need to enter a contract, and the norms of the society that must be followed to consummate the contract. Ex post costs are paid for after the contract has been agreed to. This includes policing the agreement, ensuring compliance, adapting to changing circumstances, and resolving potential conflicts. Firms and public officials must create a corruption infrastructure by investing in long term relationships with people they are able to trust. This reduces the possible ex ante and ex post costs for future exchanges. In this way, firms can reduce risks of investing in corrupt countries. It is easier to have these infrastructures in Asia because Asian governments tend to have stable governments in which firms know who to bribe and that the person is likely to remain in their position for a long time. Also, Asian cultures value trust, honor, family, and loyalty. This emphasis on personal connections and reciprocity makes for an ideal environment conducive to the development of long term relationships that make corruption predictable.

Define decentralization and explain how it might affect corruption in Africa.

Decentralization- reduction of the amount of power held by an executive. This involved redistributing power among many individuals and institutions and other levels of government. Can contribute to poverty because it is more expensive - less organized and centralized. This is meant to help stop neo-patrimonial corruption by removing personalized leadership from the equation. Unfortunately, the corruption in neo- patrimonial systems in highly systemic, meaning everyone is involved in the corruption. If power was decentralized, it would likely just move the corruption around without ending it. I will argue, however, that the decentralization of power in neo- patrimonial corruption could help distribute resources a little more evenly across the country.

Choose either Japan or Germany explain why that case was included in Johnston's influence market chapter. What specific characteristics led him to put that case there?

Germany Germany has a federal system, democratic politics, and a highly developed economy. Much of the corruption is involved with the Sozialstaat which is the part of government that handles major revenues and delivers important benefits. In particular, there is extensive corruption in the area of local government construction contracting. Interests contend for contracts and benefits while Germany's decentralized political system offers access where parties and politicians serve as the middlemen in the exchange. Characteristics Flourishes at high levels: Major influence is within the leaders of more than one party. These leaders have the common interest in a political and electoral system where they share power and they distribute material benefits. Germany's economy is also characterized by the presence of large private firms, labor unions, and other groups that have major funds at their disposal. Crosses party lines: 3 Parties dominate politics in Germany (Social Democrats, Free Democrats, Christian Democratic Union). These parties provide a variety of connections among levels of government, states, and social and economic interests. These parties are rarely wholly out of power and even when defeated in elections, they retain political leverage. High profile scandals revolve around political fundraising which are cross-party affairs where benefits are shared among parties in proportion to their strength. Involves relatively few risks: There are fairly weak legal and political restraints on corrupt dealings. Top figures often are given de facto immunity in which jail sentences are rare, criminal charges are likely to deal with tax evasion rather than bribery, and political careers are relatively untarnished.

Explain how governmental intervention in the economy can generate corruption in Latin America. Identify one potential reform and explain how it is supposed to reduce that corruption.

Government intervention increases government actor's access to and control over resources. this gives the actors incentive to trade government policy for electoral power. Government intervention also increases businesses dependency on the government for economic success. This increases the businesses incentive to bribe the government officials for access to economic sectors and buy ins to certain monopolies. One type of potential reform for Latin America is economic liberization. This is supposed to work by privatizing government-owned monopolies. This would help minimize low-level corruption by taking the power over resources out of the hands of government officials and thus decreasing the incentive for private industries and individuals to bribe public officials. It is argued that since Latin American states intervene more in the economy, then corruption is increased as a result of government actors having more access to and control over resources. This creates incentive for those in government to trade government policies such as giving businesses licenses for money to win elections to gain political power. There is also the argument made that government intervention in the economy makes businesses more dependent on government action for economic success. There is incentives for businesses to try to bribe government officials to gain access to certain economic sectors or purchase monopolies on specific goods or services. An example of this is the Mexican oil boom of the late 1970s in which government officials controlled the state oil company, PEMEX, and corruption grew as businesses tried to gain power by accessing the oil. One reform that is often proposed is to liberalize the economy. This would entail the privatization of government owned monopolies. Since government would control less resources, then there would be less incentive for firms and individuals to pay bribes to public officials to gain access to those resources. However, this type of reform has actually been correlated with an increase in corruption. The transition from a government controlled economy to a private one would create uncertainty concerning relationships, power, and resources. More importantly, the process of government divestment could also be corrupt. The government needs to make decisions of who to sell resources to and for what price which incentivizes firms to try to influence these outcomes to their advantage.

What are some of the costs of official mogul corruption?

Growing economic opportunity, but lack of accountability and strong institutions make an orderly market economy possible corruption is large scale and free wheeling, crosses international borders effects - inhibiting national integration of markets, weaken secondary economic institutions, stunt growth of civil society, increase externalities unrest in the form of separatist movements, communal contention, personal rivals

Define and provide an example of an informal institution. Explain how such institutions can lead to corruption.

Helmke and Levitsky (2006) define informal institutions as "rules enforced outside of officially sanctioned channels, although they can be enforced by political actors and institutions." An example of an informal institution is clientelism which is socially enforced, but there is no actual rule that explicitly states the guidelines of this situation. Informal institutions often emerge to allow more representation of diverse groups in society and to be able to meet the needs socially and politically that cannot be met within a hyper-presidential system (weak institution) where power is not representative. Although informal institutions can make up for the weaknesses of formal institutions, there are still issues that lead to corruption. Informal institutions lead to a lack of accountability of government because you cannot enforce rules that are unwritten. These institutions also typically result in the circumvention of formal laws. For example, it is illegal in the US for a legislator to trade their vote for a campaign contribution. However, there is an informal enforcement of campaign contribution contracts in which legislators will support their contributors while contributors punish legislators that do not represent their interests. Institutional Effectiveness The first characteristic is the institutional effectiveness of formal institutions (high or low). The second is whether the goals (outcomes) of the formal and informal institutions are the same (convergent) or different (divergent). Informal institutions can be good in many cases. If formal institutional effectiveness is high and outcomes are either convergent or divergent, there are few problems as long as divergent informal institutions do not actually break any formal rules. In the case of convergent outcomes, the two sets of institutions work together, and the informal institutions actually complement and add to the formal institutions, strengthening political responsiveness and stability. If the outcomes are divergent, then the two sets of institutions may work to different purposes but not necessarily competing purposes as long as the informal institutions do not constitute illegal behavior.

How did Newbury v. U.S. (1921) impact campaign finance rules in the U.S.?

determined that congress could not constitutionally regulate political party nomination processes, like primaries; it can only regulate general elections. This repealed the public policy act and replaced it with the Federal Corrupt Practices Act, which required that all disclosure occur on a quarterly basis and raised the amount of money that could be spent on a campaign and applied it to general elections.

How and why does insecurity play a role in oligarch/clan corruption?

In Oligarch/Clan societies, it is hard to distinguish between organized crime, state officials, and corrupt politicians. A small number of individuals use their wealth, political power, and oftentimes violence to contend over major stakes and to reward their followers. In this setting, it is likely that institutional checks and legal guarantees mean little. The power of oligarchs is not clearly public or private, it is usually both, but it is always personal. Political and economic opportunities that accompany positions of power are significant. However, those gains are difficult to protect. It is not unusual when those who try to investigate corruption in this syndrome or try to publicly expose it are killed. Countries in this syndrome have experienced rapid and significant liberalization of politics, economies, or both. However, this development is relatively recent and so their institutions and civil societies are fairly weak. Official powers and institutions are ineffective, unpredictable, and can be up for rent. The enforceability of contracts in addition to the security of property and investments are not assured. As a result, gains must be protected by even more corruption or by violence. Wealth might only be secured when it is sent out of the country. This is why corruption in this syndrome is defensive and protective in nature. Poverty, insecurity, and the need to be protected make the process of gaining supporters relatively easy. However, unpredictable competition and a climate of uncertainty can make it difficult to reward and retain those followers which further adds to the incentives for corruption and violence. The state may lose much of its autonomy and become just another source of protection and corruption in an environment without security.

How and why does violence play a role in oligarch/clan corruption?

In Oligarch/Clan societies, it is hard to distinguish between organized crime, state officials, and corrupt politicians. A small number of individuals use their wealth, political power, and oftentimes violence to contend over major stakes and to reward their followers. In this setting, it is likely that institutional checks and legal guarantees mean little. The power of oligarchs is not clearly public or private, it is usually both, but it is always personal. Political and economic opportunities that accompany positions of power are significant. However, those gains are difficult to protect. It is not unusual when those who try to investigate corruption in this syndrome or try to publicly expose it are killed. Unpredictable contention over large stakes and the weakness of law enforcement contribute to violence in these societies. Also important is the inability of the courts and other state institutions to resolve disputes and conflict, enforce contracts, and protect property rights. In places where public agencies cannot control these basic guarantees, active markets in protection services develop. Threats of using violence also play a role in disciplining followers since they have a variety of other options. Buying support repeatedly becomes very costly over time. Consequently, violence and intimidation are considered to have valuable demonstration effects. Example: Russian gangs provided protection under circumstances of insecurity. Organized crime was viewed as the most effective means of protection over corrupt police enforcement and legit private security.

What is the difference between high-level and low-level corruption? Which is most common in Latin America?

Low-level corruption tends to be more economic and is based on clientelistic relationships. Clientelism is an informal relationship between people of different social and economic status: a patron and his clients. The relationship involves a mutual, but unequal exchange of favors that can be corrupt. High-level corruption is usually for the purpose of gaining political as opposed to economic power. It is also controlled by high-level officials for two reasons: to win elections and gain electoral power and to amass personal economic resources. In Latin America,both types of corruption is present. The first type of corruption is High-Level corruption, where high ranking political leaders control the scarce resources. This often means that officials will trade government policy for money to win elections. The more common type of corruption in Low-level corruption The government economic power also controls the success of businesses, which encourages businesses to bribe public officials for access to economic sectors or to buy into monopolies

Define neo-patrimonialism and explain it's causes.

Neo-patrimonialism- "administrative apparatus in which coheres around a network of personal dependencies rather than objective administrative sectors with no clear cut seperation between incubent and office, between public resources and private interest" (Theobald 1994). the ruler is viewed as the state and no distinction is made politics and economics are essentially the same thing causes: personal relationship principles scarcity of resources globalization

Define the terms pervasiveness and arbitrariness as they relate to corruption. What impact do they have on the type of corruption in a country?

Pervasiveness is the amount of corruption that occurs. This can be helpful because it provides information about who to bribe and how much the bribe is. Foreign firms also do not have to collect much information to know that they are better off if they obtain resources through bribes. Arbitrariness measures how unpredictable the corruption is. This has a negative effect because it makes it more difficult for firms to determine whether they should try to bribe, who they should bribe, and how much. This is even more difficult for foreign firms because of the secrecy of corrupt exchanges which means that they are not aware of how things are going to function in this foreign or unfamiliar environment. These aspects of secrecy and foreignness make foreign investment more risky. Lee and Oh (2007) proposed these relationships High pervasiveness/low arbitrariness: these countries attract more FDI because firms that pay bribes can expect to receive the service agreed upon. Because of this certainty, they will feel less disadvantaged compared to local firms. (ex: China) Low pervasiveness/low arbitrariness: investment will be high. Although fewer firms will pay bribes, the ones that do know that they will likely receive the service bargained for. (ex: Japan) High pervasiveness/high arbitrariness: FDI is unlikely. This is because firms know they have to pay bribes to participate in the economy, but do not know when those bribes will warrant the service. Foreign firms thus feel disadvantaged in comparison to local firms. (ex:Cambodia) Low pervasiveness/high arbitrariness: FDI is unlikely because although the likelihood of paying a bribe is low, the uncertainty of a guarantee of the service makes foreign firms feel disadvantaged. (ex: Malaysia)

How is elite cartel corruption different from influence market corruption? How are they similar?

Similar: They both feature democracies and markets that have undergone long term liberalization. Their institutions are stronger than Oligarch/Clan and Official Mogul societies. They have high development scores. Different: Participation/Institutions Influence Markets have mature democracies that have been legitimized through a long duration of time and are liberalized with steady competition and participation. They also have markets that are liberalized, affluent, and open and have integrated steady competition. In terms of their institutions, they have extensive state/society capacity and strong economic institutions. Elite Cartels have consolidating or reforming democracies. They have been liberalized, but competition and participation is still growing. Their markets are reforming and have been largely liberalized and opened. There is growing competition and their economies are moderately affluent. In terms of their institutions, they have moderate economic institutions and moderate state/society capacities. Influence Market Corruption deals with access within existing institutions. Efforts are aimed at working within the system. Corruption is used in winning offices, targeting government contracts, and implementing policies. Elite Cartel Corruption is more so defensive in nature, aimed at protecting existing economic, political, and policy advantages as well as strengthening ally connections. Corruption is used as a stabilizing force.

What is "soft money" and how was its use impacted by the Bipartisan Campaign Reform Act (2002)?

Soft money is the legally unlimited money that can be contributed by individuals and groups to political parties to be used for party building and party support activities such as registering voters, mobilizing party members, educating the public on party issues and positions. The money cannot be spent on direct efforts to get a certain candidate elected, however. In the 1990s, both parties exploited the boundaries of what was considered soft money and what this could be spent on. For example, in the 1996 election, both parties did not use soft money for traditional party building activities and expenses, but rather used it for television advertisements that featured presidential candidates. People viewed this as an attempt to circumvent spending limits that both candidates agreed to under the system that provided federal funds for their campaigns. The Bipartisan Campaign Reform Act (2002) outlawed soft money contributions to parties and doubled the limits on contributions made to candidates and parties by individuals and interest groups. Money that previously went to parties as soft money now goes to 527 committees which are tax-exempt organizations that play a role in politics but are unable to advocate for or against a certain candidate.

Choose one of the case studies from Johnston's elite cartel chapter and explain why it was included. What specific characteristics led him to put that case there?

South Korea Corruption in South Korea has supported a hegemonic elite, aided early economic development, and exacerbated different economic risks and political resentment. There is increased political competition in the presence of weak institutions. Japanese colonial rule ultimately led to a powerful, centralized, and overdeveloped state apparatus. Characteristics: Money politics: large payments from businesses to parties for major policy favors. Money and politics are essential to power and stability of the regime. Networks of top state officials, bureaucratic elite, military leaders, and chaebols (family industrial conglomerates). These networks are bound by corrupt incentive, loyalties, threat from North Korea, and the need to stave off political competition. Traditional attitudes including deference to authority and sense of duty towards higher powers has led to low trust, a personalized view of authority (such as patron-client relationships), and views of individuals acting within a define space. This has discouraged development of social initiatives which would check the state and has perpetuated the view of power as zero-sum.

Briefly summarize FECA 1974 and explain how Buckley v. Valeo (1976) affected its implementation.

The Federal Election Campaign Act of 1974 was a reform package that set the strictest spending limits to date (based off of voting aging and population size of the district of the candidate-the higher the population of the district, the more money a candidate was allowed to spend), created an independent agency to oversee and implement the campaign finance system (Federal Election Commission), and continued the expansion and clarification of disclosure requirements. Buckley v. Valeo (1976): court case that determined it was unconstitutional to limit how much money a campaign could spend. The rationale was that it violated their free speech protected under the First Amendment. The court also determined that any individual or group that wanted to spend money on behalf of or against a candidate were not allowed to be limited as long as that spending was not involved with the candidate's campaign (called independent expenditures). Although, the court did decide that limiting direct contributions to a campaign from individuals or groups was constitutionally allowed because unlimited contributions of this nature would lead to a public belief that the process is corrupt which could undermine support for the political system.

What are the three critical relationships in a party machine?

The party organization: this group nominates and gathers enough votes in order to elect the next group, public officeholders. They are often viewed as the broker between private favor seekers and public officeholders. Public officeholders: after this group is elected, they are given direct access to patronage positions, allocations of government contracts, licensing, and other regulatory processes that can affect the success of businesses. Interest group: these groups consist of groups such as businesses and others who need favors from these public officeholders so that they may continue their economic success.

Define neo-populism and explain how it leads to corruption.

Weyland (1998) defines neo-populism as "personalized leadership; power gained by appealing to the support of the (usually unorganized) masses." This type of leader usually presents themselves as an outsider to the governmental system, someone that can enact necessary changes that diverge from the norm. They will argue that the system is broken and that a free hand is necessary to fix it. Their base of support comes from the unorganized and largely disenfranchised groups within society. They are typically not part of any trade union or organized political party. Leads to corruption because Lack of accountability: neo-populist leaders have concentrated power because of the personal nature of their campaign. Since they are supported by the people, then anyone who opposed them is considered as an enemy to the people. Leaders will attempt to weaken institutional safeguards such as oversign panels, an independent judiciary, and anti corruption efforts/rules. They justify this through their campaign rhetoric of trying to reform the system and overturn old formal rules in order to bring positive change. This behavior will be supported because the people have been manipulated to believe that the changes are necessary for economic and political success. Individualistic/Not based on party loyalty: Leaders cannot rely on parties to maintain their connection to the people. So, they need large sums of money to reach the people which typically results in the development of new and expensive ways to reach their followers such as television, personal staff, and extensive traveling. Since these are expensive, leaders are incentivized to use corruption to gain the money to fund such expenses. Their supporters are largely poor and they have already antagonized the wealthy groups including labor unions and political parties. Necessary to keep personal aides/bureaucrats in line: Corruption can serve as a carrot and a stick. A carrot because the leader enables his allies to gain economically by collecting bribes. Corruption is also a stick because those who engaged in the corruption are motivated to stay loyal to their leader because their corrupt activities can be used to blackmail them. Lack of monetary support: Neo-populist leaders lack support from wealthy groups and thus rely on corrupt funds to maintain their position.

Do you think political contributions are inherently corrupt? Explain two reasons why or why not.

yes - gift theory, electoral effect