Offer: public investments occur where profit is not possible, and usually have long break-even horizons. Private finance requires certainty. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Example 1: the UK’s private finance initiatives (PFI). Was this corrupt? It was intended to take debt off the government balance sheet. The projects haven’t been assessed for value-for-money. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Offer: PFI filled with cronyism and kleptocracy. Lots of revolving doors between public and private. No transparency. All legal! #oxeshfacseminar #econhist #twitterstorians #econtwitter
Type one of corruption: petty corruption with quid pro quo (little people) #oxeshfacseminar #econhist #twitterstorians #econtwitter
Type two: grand corruption, big people write the rules, which allow capture of the legislature, executive, judiciary (e.g. Citizens’ United) #oxeshfacseminar #econhist #twitterstorians #econtwitter
Type three: the economy of regard. Norm of reciprocity, driven by a desire for special treatment. Gifts must be returned in one form or another. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Next example: the Washington consensus involved large scale privatization. This led to race-to-the-bottom corruption (who can bribe first). The proposed solution from the WB/IMF is transparency/policing. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Based on @TheEconomist figures, Scandinavia, with its large states, is the least corrupt area. #oxeshfacseminar #econhist #twitterstorians #econtwitter
In the US, courts have narrowed the definition to only quid pro quo corruption #oxeshfacseminar #econhist #twitterstorians #econtwitter
Uses @PrivateEyeNews stories to measure changes in UK corruption over time #oxeshfacseminar #econhist #twitterstorians #econtwitter 
One caveat: the magazine does increase in size over time #oxeshfacseminar #econhist #twitterstorians #econtwitter
People in senior public service jobs have many opportunities for corruption #oxeshfacseminar #econhist #twitterstorians #econtwitter
How to resolve this sort of problem? In the C18, public office was seen as an opportunity for enrichment (the Old Corruption). #oxeshfacseminar #econhist #twitterstorians #econtwitter
This was followed by an “integrity revolution” in the middle third of the C19. Create incentives for impartiality. Examinations for civil service, impersonal, professional bureaucracy. Needs signals for integrity. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Can also postpone payoffs to the end, e.g. knighthoods for UK civil servants. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Offer: the Integrity Revolution was reversed in the 1980s. Payment by results for civil servants, intrusion of market efficiency doctrines. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Fourth type of corruption: fiduciary failure. E.g. Volkswagen, Boeing. Businesses fail in their duty to the public and their shareholders. #oxeshfacseminar #econhist #twitterstorians #econtwitter
From the 1970s, professional ethical codes began to be seen as inefficient. Example (of the effect): opioid epidemic in the United States. Market incentives trump professional norms. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Lots of examples from the health care industry in the US #oxeshfacseminar #econhist #twitterstorians #econtwitter
Offer: “for those of you who only believe numbers” #oxeshfacseminar #econhist #twitterstorians #econtwitter
Is some corruption okay, or even good? Chicago school: combating corruption is costly, so there must be an optimal level. Other view: some corruption promotes efficiency #oxeshfacseminar #econhist #twitterstorians #econtwitter
China over the last few decades has had a big push with high growth and lots of corruption through the big state. However, it has created a lot of infrastructure. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Marketization without competition leads to inefficiency and/or corruption. Fiduciaries can be ruthless on the doctrine of caveat emptor. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Question from Catherine Schenk: what about corruption in North American railways during the Integrity Revolution period? Offer: intentionally left America out of this concept. #oxeshfacseminar #econhist #twitterstorians #econtwitter
Offer: great power competition may have led to Integrity Revolution—make sure competent people are captaining the ships #oxeshfacseminar #econhist #twitterstorians #econtwitter
Marguerite Dupree: contra the China example, what about when there is just a huge amount of corruption, so much that it stops things from getting done? Offer: in China there is an elite that tries to be disinterested #oxeshfacseminar #econhist #twitterstorians #econtwitter
Offer: the CCP is universally recognized as a legitimate authority #oxeshfacseminar #econhist #twitterstorians #econtwitter
Offer: the enlightenment replaces revealed truth with found truth—maybe this helped lead to the Integrity Revolution #oxeshfacseminar #econhist #twitterstorians #econtwitter
