The Political Economy of Corruption: A Study of Russia and Ukraine

This essay examines the political economy of corruption in Russia and Ukraine, highlighting the reasons why the fight against corruption has not been won in both countries. In Russia, political clientelism, inconsistent application of laws, and a lack of transparency in public administration contribute to the problem. Similarly, in Ukraine, corruption is perceived as a means of preventing business bankruptcy due to costly government regulations, coupled with a lack of trust in the judicial and enforcement systems. The essay proposes more effective anti-corruption interventions, including merit-based recruitment of enforcement officials, electronic payment systems for public services, electronic procurement systems, and public awareness campaigns. It also emphasizes the importance of good governance, stricter penalties, and political will to combat corruption effectively. The essay concludes that while both countries are fighting corruption, significant challenges remain, including enforcement issues, lack of political will, and a breakdown of public trust.

POLITICAL ECONOMY OF CORRUPTION
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Corruption in Russia and Ukraine 1
Introduction
Notably, corruption is a global dilemma.Noteworthy, Ukraine is considered
one of the countries most affected by corruption. However, Ukraine is making
progress towards fighting the corruption menace. Despite the existence of anti-
corruption measures in Russia and Ukraine, the fight against corruption is yet to be
won due to lack of political will, corrupt enforcement officials, costly government
procedures for businesses to comply with, lenient penalties among other factors.
The fact that corruption is a global dilemma has led to the ranking of countries in
their efforts to curb the vice. However, the fight against corruption can be won
through the good governance, upholding the rule of law, stricter penalties, and
restoration of trust in law enforcement agencies by members of the public,
cooperation between citizens, government agencies and enforcement officials plus
the implementation of an electronic system for all public services. In addition,
payment of better salaries, for public servants such as the police and judicial
officers proper scrutiny of state officials, implementation of electronic systems of
payment and public procurement and good governance will go a long way in
fighting corruption. Worth noting is the fact that corruption is a global menace and
the same can be eradicated.

Corruption in Russia and Ukraine 2
Why the fight against corruption has not been won In RUSSIA
Notably, the fight against corruption hasn’t been won in Russia for various
reasons. Unfortunately, political clientelism has influenced the thriving of
corruption practices in most Russian regions. Due to loyalty to political agenda,
political figures in the country lack the commitment to fight corruption when they
are finally elected into office (Sharafutdniva 2010). The fight against corruption
can only be won where there is the political will to fight against it and not
suporters of their own political agenda to prevent the thriving of corruption in
most Russian regions and the world globally. Specifically, the inconsistent
application of laws across the Russian business environment has aided the spread
of corruption. Additionally, the lack of transparency and accountability systems in
public administration has encouraged the spread of corruption among public office
holders (GAN 2019). Despite the Russian government laws requiring business
enterprises to enforce compliance of anti-corruption measures in their business
establishment, most companies are yet to implementing the same thus boosting
corruption tendencies. The fight against the vice can be won through proper
governance and enforcement of public accountability systems.Despite the
measures being implemented in Russia,crruption is still a menace.

Corruption in Russia and Ukraine 3
Also, the lack of willingness to fight corruption by the enforcement
mechanisms such as the police and the justice system has encouraged the spread of
corruption (Figure 1b below). Unfortunately, the fact that most enforcement
officials such as the police and other civil servant earn little salaries than their
counterparts in the private sector has propelled the habit for corruption to make
ends meet (Schulze, Sjahrir & Zakharov). The temptation to collect bribes and
other favors from corrupt lawbreakers has made law enforcers culpable of
corruption due to the rather minimal salaries they receive as compared to private
sector counterparts. Arguably, it is believed that civil servants receive less income
as compared to private sector employees thus a temptation to adopt the livelihood
of other private sector employees. Undoubtedly money and luxuries are a huge
temptation for most human beings, less pay might influence law officers to demand
favors, bribes or extort money from hard-working citizens of their respective
countries. Maybe the increase in salaries will make enforcement officials abstain
from the temptation of bribery.Whereas the common form of corruptive activities
is bribery, extortion, favors are other forms of this menace. Basically, I propose
better salaries for public servants to reduce instances of temptation for bribes.

Corruption in Russia and Ukraine 4
Figure .1 (Trading economics 2019)
Ukraine
Unfortunately, Ukraine is ranked among the most corrupt countries in
Europe having scored an all-time high of 32 points out of a possible a hundred on
the 2018 corruption perception index as depicted in figure 2 below (Trading
Economics 2019). According to some private Ukrainian business people,

Corruption in Russia and Ukraine 5
corruption helps them prevent their businesses from bankruptcy which is
engineered by compliance of all government laws and policies (Sivula 2015).
Some of the private Ukrainian entrepreneurs perceive the government regulation
for businesses to be costly thus bribing their way through corrupt officials to keep
their businesses afloat (Shleifer & Vishny, 1993 ).In addition, a lack of trust in the
judicial or enforcement systems has led Ukrainian nationals to bribe their ways
through favors. This is because they hold the belief that public servants will protect
similar public servants in corruption thus contributing to the loss of the fight
against corruption (Savula 2015). Notably, a lack of confidence in the law
enforcement officials such as the police, judicial authority and other public service
officials has contributed to the rise in corruption levels.Essentially, the public
servants ought to win back the trust of the public in the fight against corruption
which has been eroded by the practice of corrupt judges and police teams.

Corruption in Russia and Ukraine 6
(Trading Economics 2019).
How would you design more effective anti-corruption interventions for the
countries you have selected?
Personally, I would recommend that enforcement officials such as police,
the judicial officers be recruited on merit and integrity, be retrenched or recalled in
the event that their integrity is compromised so as to inspire and maintain
confidence from the public. Subsequently, the lack of public confidence in state
agencies that fight corruption is not a new phenomenon that has dragged out the
fight against corruption. Also, I would recommend that payment of public services
be made through electronic systems to avoid any bribery and extortion instances of
corruption on the part of public service seekers and enforcers. In addition, to curb

Corruption in Russia and Ukraine 7
public looting of funds, I would recommend the designing of electronic
procurement systems to ensure that all individuals who undertake procure public
services and goods comply with the online requirement to reduce instances of
corruption (Halushka 2018). To boost the confidence of the public on law
enforcement agencies I would recommend that countries open hotlines for
corruption across the country. Additionally, I would organize social and nonformal
events between the police and the public to interact and share information on the
state of corruption (Semukhina & Reynolds 2011).it is important that the citizens
of both countries feel confident to report incidents of corruption to the respective
arms of government to eliminate corruption.
Measures to end corruption
Remarkably, the rate of corruption in Singapore went down upon the increase
in salaries of public officers thus proving it is an effective tool in discouraging law
enforcement officials from partaking in corruptive behaviors (Schulze, Sjahrir &
Zakharov, N .d). Unfortunately, political clientelism extends to tax evasion and
illicit money flows for political favors and agenda (Reuter, 2012). Subsequently,
evasion of taxes and money laundering is another form of corruption in my humble
view. In a bid to curb such forms of corruption, it is imperative that both the
Russian and Ukrainian government ensure that political leaders use legally
acquired money flows for their campaigns .If so, it will prevent acts such as money

Corruption in Russia and Ukraine 8
laundering and tax evasion from being done in their respective countries. Usually
money laundering might be a repayment or payback for political alliance.
Specifically, this initiative can be done through wealth declaration by candidates
seeking political offices, transparent open systems for donations to campaign funds
and requiring that political and public servants provide tax compliance documents
prior to occupying and during their terms in public office. This practice is likely to
build public trust, integrity in the political candidates and public service by the
public population. Through tax compliance, a culture of transparency can be
adopted thus boosting accountability and confidence.
Unfortunately, the existence of anti-corruption laws, the fight against
corruption is far from being won. According to the Organization for economic
cooperation and Development, the enforcement of anti-corruption laws requires
that the enforcement of anticorruption laws be supported by political will which is
currently lacking in most countries. In most countries, it has been observed that the
existing governments are reluctant to prosecute top ranking officials involved in
corruption activities. In addition, there is selective prosecution of high ranking
officials associated with corruption has delayed the win against corruption.
Usually, most top-ranking officials in the public service are not prosecuted for
engaging in acts of corruption thus undermining the rule of law. (O.E.C.D 2017).In
addition, harsher penalties need to be meted against corruption agents so as to act

Corruption in Russia and Ukraine 9
as a public determent symbol. Primarily, lenient sentences and fines do not deter
corruption in the public domain. Currently, most countries have implemented fines
and lenient jail terms for corrupt officials which don’t seem to deter more persons
from engaging in criminal activities. In the event that harsher penalties such as
death are legislated into the laws of respective countries , public servicepersons
will fear to loot public property for own gains.
Additionally, good governance structures go a long way in eradicating
corruption. It is my view that a good governance system promotes transparency,
democracy, and accountability in public service (Mackey et.al 2016).In the event
that the Russian and Ukrainian government implement systems of good
governance such as transparent recruitment, procurement processes, among other
transparency and accountability systems the level of corruptive acts will reduce.
With good governance comes the political will to fight corruption as an enemy of
good governance. Notably, political will has reduced the levels of corruption in
Singapore effectively (Quah 2016). According to the World Bank Group,
corruption can be tamed with proper governance structures. Through the
implementation of transparent and accountability systems in the public service, it is
possible to spend money wisely and avoid corruptive incidences (World Bank
Group 2018). Basically, proper governance structures include the enforcement of
openness, transparency and accountability systems into the public service. Through

Corruption in Russia and Ukraine 10
open governance, public procurement can be monitored by all and respective steps
taken against noncompliance.
Undoubtedly, rent-seeking can be beneficial or not to any country’s citizens. It
all depends on the political will of the existing government. Whereas rent seeking
can be a tool for development, it can easily be a tool for the corrupt to dig deeper
into public funds (Keefer & Knack 2006). To curb predatory forms of corruption, I
hold the view that political parties and the state need to design systems that curb
such practices (Khan 2016). Unfortunately, the success of predatory forms of
corruption rests on cooperation among political parties, the state, and the
enforcement agencies capabilities which in most cases hasn’t been effective in
curbing this vice. Also, public awareness on the importance of good governance,
civil rights and the publication of harsher corruption related penalties such as death
as compared to fines will help win the fight against corruption. The fact that some
Russian and Ukrainian citizens partook in bribery to obtain essential public
services goes to show that some citizens don’t know they are entitled to free of
charge service form state agents. All in all, sensitization and participation of civil
rights is very key in eliminating it. Citizen awareness programs have been effective
in combating corruption incidences in the public service since citizens aware of
their rights do not bribe officers to be attended to but instead report extorting
officials to the authorities.

Corruption in Russia and Ukraine 11
Conclusion
Despite the current corruption index ratings, both Russia and Ukraine are
fighting corruption at their respective jurisdiction .Noteworthy, both countries face
similar challenges of enforcement, lack of political will, breakdown of public trust
and confidence in law enforcement mechanisms among other factors. However, the
fight against corruption is far from being won due to the challenges of
enforcement, lack of cooperation and commitment to fight corruption between
citizen, judicial officers, police, state and political parties. Worth noting is that all
is not lost, with the restoration of public trust in state officers, designing and
implementation of electronic systems to monitor public procurement and payment
for services by the public, transparency and accountability systems to promote
good governance, the war against corruption will be won in Russia and Ukraine.

Corruption in Russia and Ukraine 12
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