McGill University
INTD: 497: Research Seminar on International Development.
Winter 2014
CORRUPTION AND DEVELOPMENT
Professor Manuel Balán
Office: Leacock 513
514-398-4400 ext. 09191
manuel.balan@mcgill.ca
Class meets: Wed 2:35-5:25pm
Class location: LEA 116
Office hours: TBD
Course Description:
This course explores an issue that affects developed and developing countries alike. Scholars,
politicians, and civil society often conceive of corruption as a global problem that demands urgent
attention. At the domestic level, it impedes economic development, wastes resources, and
reinforces social inequalities. The abuse of power undermines government performance and erodes
political legitimacy. At the international level, corruption is often linked to organized crime, money
laundering, arms smuggling, and narcotics trafficking. Every day we see a number of news on
corruption appearing in media outlets around the world.
As a course designed for advanced undergraduate students, its main purpose is to provide the tools
to understand and analyze the relationship between corruption and development. First, we will
begin with questions of definition and measurement: How can we identify corruption in its various
forms, and how can levels and the prevalence of corruption be measured? Second, we will consider
the causes and consequences of corruption, as identified in existing literature. Then, we will explore
a number of issues that look at corruption from different angles: political corruption, corruption
and the media, efforts to curb corruption, among others. Throughout the course we will think about
the impact of corruption on development and the quality of democracy.
Rather than focusing on one country at a time or on a few countries in depth, we will use events and
systems in various countries as illustrations. The readings are a collection of research on these
issues and require the students to read prior to each class session and to engage the readings
critically. We will test authors’ claims against the evidence they present, challenge the logic of their
arguments, and question their conclusions. On some units we will also read newspaper or magazine
articles, and in others we will watch a movie related to the issue under study.
The class will be a combination of lecture and discussion, with a heavy emphasis in the latter. I will
not repeat what is found in the materials, on the assumption that students will come to class
prepared. The reading load is heavy, and keeping up is essential to both your success as a student as
well as the course’s!
Course Requirements:
The final grade will be determined as follows:
Attendance and Participation (includes weekly assignments)
Analytical Essay – 5 pages
Proposal for Group Project – 5 pages (due before reading week)
Group Project Presentation (2/4, 9/4)
Group Project Paper – 40 pages (16/4)
30%
15%
5%
15%
35%
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Attendance and Participation:
There will be 60-155 pages of (sometimes complex!) reading for each week. You are expected to
come to class having completed ALL readings.
-Regular class attendance and participation: I will hand out a sign-in attendance sheet at the
beginning of each class. You may miss two classes—or parts of two classes—for whatever reason
(excused or unexcused) over the course of the semester without incurring any penalty.
Participation in class discussions is required and students are expected to keep up with the
readings. While speaking in class is important, please keep in mind that it is not just quantity that
matters, but also quality.
-Weekly assignments (count toward participation):
1. Leading discussion. Throughout the semester, each student will be assigned to help guide
discussion on a class session. The three students assigned on each week (in some weeks there will
be four) will coordinate as a team and will be in charge of reviewing the week’s materials and
posing discussion questions. The students assigned must work together and send a handout of the
questions and points they want to cover (2-3 pages) to the whole class by 8pm the day before the
seminar. Each student will be assigned to one week throughout the semester.
2. News coverage. Also throughout the semester, each student will be assigned to cover world news
on corruption for a class session (not to coincide with the week in which you are leading
discussion). The three students assigned on each week (some weeks there will be four) will
coordinate and create a short (5-10 min) presentation on the corruption news of the week. As we
move along in the semester, these presentations will need to cover the issues we look at in class,
going from the different types of corruption, to their causes, consequences, etc. The three students
assigned for each week are required to coordinate and circulate a 2-3 page summary of the news to
the whole class by 8pm the day before the seminar. Each student will be assigned to cover the news
on one week throughout the semester.
Analytical Essay:
Each student is required to write one analytical essay (5 double-spaced pages) concerning the
issues covered in the assigned readings on a particular week. Critiques should focus on strengths
and weaknesses of assigned readings, advancing some argument that deals with the readings. There
is no summary of readings unless necessary to illustrate your comments. Critiques will only be
accepted by email by 8pm the day before class. No extension or incompletes will be given. Critiques
will be written for weeks in which you are not leading discussion or covering the news.
Final Group Project: The main assignment for this class is a group project that will take place
throughout the semester. As soon as the add-drop period is over, we will form 6 groups of 5
students (assuming we’ll have 30 students in the class). The idea of the project is to design and
propose a development project to address some aspect of corruption in some place of the world.
The group has to collectively decide upon a project and a place (region, country, province/state,
city) where the project will be applied. You have absolute freedom to create the project you want,
but you need to explicitly assess both the costs and potential benefits/outcomes of the project, as
well as the constraints and opportunities generated by the location where you choose to implement
the project. The projects must include:
 A detailed description of the project and the rationale behind it.
 A detailed budget of the costs of carrying out the project.
 A timeline of implementation and of expected outcomes.
 A detailed analysis of the location background insofar as it affects the feasibility and
potential effectiveness of the project.
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 An assessment of the potential replicability of the project in other contexts.
More details about this project will be provided as we move forward in the semester. The project
will consist of three stages: proposal, paper and presentation.
I. Research Proposal: Each group must submit a 5-page proposal for their development project.
This proposal should present the idea you want to advance, and briefly cover the different
components of the project. The proposal should also cover the division of labor among the
students in the group. The proposal also needs to clarify the sources of information, case
selection, and other details you deem relevant. The more work you put into this proposal
stage, the more detailed feedback you’ll receive from me.
II. Presentation: In the two last weeks of the term, each group will present their project to the
whole class. You should plan on 30-minute presentations. Your objective is to provide a clear
and compelling brief on your project. Presentations should NOT be read, and need to be wellplanned and rehearsed. The use of visual aids and graphs is highly encouraged. Creativity and
originality will be rewarded. In short, your presentations need to be awesome, and you should
work on providing an entertaining and thoughtful talk that will make people remember and
buy into your project.
III. Final Paper: The final group project paper should be of around 40-45 pages.
Extra credit Opportunities:
1. March Conference: On March 13 and 14, the Institute for the Study of International Development
is organizing a conference on Truth and Reconciliation Commissions. There will be one session
taking place on Thursday March 13th and a few sessions on Friday March 14th. Attendance to any
session of the conference will earn students extra credit (1.5%) that will count toward their
participation grade. Please note that participation is never to exceed the percentage established for
the course. At the conference there will be a sign up sheet at each session. Students should put their
name, student ID, and signature. Needless to say, students leaving early from a session will not
receive the extra credit.
2. Course Evaluations: To encourage filling out course evaluations I will give everybody in the class
an extra 1% if at least 80% of the students enrolled fills out the course evaluations in time.
Writing assignments have to be presented following these guidelines: double space, Times New
Roman, font 12, 1-inch margins. All endmatter does NOT count toward page limits.
Course and University Policies:
Integrity: McGill University values academic integrity. Therefore, all students must understand the
meaning and consequences of cheating, plagiarism and other academic offences under the Code of
Student Conduct and Disciplinary Procedures (see www.mcgill.ca/integrity for more information).
Special Needs: If you have a disability, please contact the instructor to arrange a time to discuss your
situation. It would be helpful if you contact the Office for Students with Disabilities at 514.398.6009
before you do this.
Language: In accord with McGill University’s Charter of Students’ Rights, students in this course
have the right to submit in English or in French any written work that is to be graded. Note that this
right applies to ALL written work that is to be graded, from one-word answers to dissertations.
Course-Evaluations: End-of-term course evaluations are one of the ways that McGill works towards
maintaining and improving the quality of courses and the students’ learning experience. You will be
notified by e-mail when the evaluations are available on Mercury.
MyCourses: This course has its own website on MyCourses. It will be updated regularly, so you are
required to check it often. On the website, in addition to this syllabus, you will find other useful
Syllabus INTD: 497-002. Balán / 3
information regarding course assignments and classes. Other items of interest will also be posted.
ALL WRITING ASSIGNMENTS MUST BE TURNED IN VIA EMAIL.
Note: In the event of extraordinary circumstances beyond the University’s control, the content
and/or evaluation scheme in this course is subject to change.
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SCHEDULE AND READING ASSIGNMENTS
Week 1: NO CLASS (January 8)
Please review Syllabus and Clip posted on MyCourses.
PART 1: STUDYING CORRUPTION
Week 2: Definition and Measurements (January 15)
Definitions:
 Svensson, Jakob. 2005. Eight Questions About Corruption. Journal of Economic Perspectives,
19(3): 19-42. Read pages 19-24 &
30-32.
 Warren, Mark E. 2006. Political Corruption as Duplicitous Exclusion. Political Science and
Politics. 39(October): 7803-07.
 Leys, Colin. 1965. What is the Problem about Corruption? The Journal of Modern African Studies
3(2): 215-230. (Read only pages 215-221).
 Bardhan, Pranab. 2006. “The Economist’s Approach to the Problem of Corruption,” World
Development, 34(2): 341-348
Measurements:
 Gladwell, Malcolm. 2011. The Order of Things. The New Yorker. 14 Feb.
 Johnston, Michael. 2005. Syndromes of Corruption. Cambridge: Cambridge University Press.
Chapter 1, 1-15.
 Sequeira, Sandra. Advances in Measuring Corruption in the Field. Unpublished Manuscript. 1-36.
 Camerer, Marianne. 2006. Measuring Public Integrity. Journal of Democracy 17(Jan.): 152-165.
Total Pages: 93
Week 3: Causes of Corruption (January 22)
 Svensson, Jakob. 2005. Eight Questions About Corruption. Journal of Economic Perspectives,
19(3): 19-42. Read pages 24-31.
 Treisman, Daniel. 2007. What Have We Learned about the Causes of Corruption from Ten Years
of Cross-National Research? Annual Review of Political Science. 10: 211-44.
 Glaeser, Edward L. and Raven E. Saks. 2006. Corruption in America, Journal of Public Economics,
90(6-7): 1053-1072.
 Golden, Miriam A, and Eric C C Chang. 2001. Competitive Corruption: Factional Conflict and
Political Malfeasance in Postwar Italian Christian Democracy. World Politics 53: 588-622.
 Persson, Torsten et al. 2003. Electoral Rules and Corruption. Journal of the European Economic
Association 1(4): 958-89. (Skip methodological discussion)
 Dininio, Phyllis. 2005. Explaining Patterns of Corruption in the Russian Regions. World Politics,
57(4): 500-529.
Total Pages: 153
Week 4: Consequences of Corruption (January 29)
 Svensson, Jakob. 2005. Eight Questions About Corruption. Journal of Economic Perspectives,
19(3): 19-42. Read pages 36-39.
 Fisman, Raymond. 2010. Corruption you can Count on. The Wall Street Journal, April 3-4: W3.
 Leff, Nathaniel. 1964. Economic Development through Bureaucratic Corruption, American
Behavioral Scientist, 8(3): 8-14. [Focus on main argument]
 Méon, Pierre-Guillaume and Laurent Weill. 2010. Is corruption an efficient grease? World
Syllabus INTD: 497-002. Balán / 5
Development 38(3): 244-359.
 China Argues. http://www.bloomberg.com/news/2012-06-07/china-argues-over-how-muchcorruption-is-best.html
 Mauro, Paulo. 2002. “The Effects of Corruption on Growth and Public Expenditure,” in Arnold J.
Heidenheimer and Michael Johnston, Eds. Political Corruption: Concepts and Contexts, New
Brunswick and London: Transaction Publishers. 339-352.
 Gupta, Sajeev et al. 1998. Does Corruption Affect Income Inequality and Poverty? IMF Working
Paper (Read only pages 24-30).
 Rose-Ackerman, Susan. 2002. “When is Corruption Harmful?” in Arnold J. Heidenheimer and
Michael Johnston, Eds. Political Corruption: Concepts and Contexts, New Brunswick and London:
Transaction Publishers. 353-371.
 Balán, Manuel. Surviving Corruption in Brazil: Lula and Dilma’s success despite corruption
allegations and its consequences. Forthcoming in Journal of Politics in Latin America. 1-33.
Total Pages: 100
PART 2: TOPICS ON CORRUPTION
Week 5: The Politics of Corruption: Politics as Usual (February 5)
 Luo, Michael. 2010. Corporate Money and Elections. The Economist. Sept 14.
 Schaffer, F.C. and Andreas Schedler. 2007. What is Vote Buying? In Elections for Sale: The Causes
and Consequences of Vote Buying, edited by Schaffer, F.C. Boulder, CO: Lynne Rienner. 17-30.
 Stokes, Susan. 2005. Perverse Accountability: A Formal Model of Machine Politics with Evidence
from Argentina. American Political Science Review, 99(August): 315-25.
 Nichter, Simeon. 2008. Vote Buying or Turnout Buying? Machine Politics and the Secret Ballot.
American Political Science Review, 102(February): 19-31.
 Samuels, David. 2001. "Does Money Matter? Credible Commitments and Campaign Finance in
New Democracies." Comparative Politics (October). 23-42.
Total Pages: 62
Week 6: Corruption and the Economy (February 12)
 Manzetti, Luigi and Charles Blake. 1996. Market Reforms and Corruption in Latin America: new
means for old ways. Review of International Political Economy 3(4): 662-697.
 Drury, Cooper et al. 2006. Corruption, Democracy, and Economic Growth. International Political
Science Review 27(2): 121-36.
 Fisman, Raymond and Edward Miguel. 2008. Economic Gangsters: Corruption, Violence, and the
Poverty of Nations. Princeton: Princeton University Press. Chapter 2: “Suharto, Inc.” 22-52
 Kang, David. 2001. “Bad Loans to Good Friends: Money Politics and the Developmental State in
South Korea.” International Organization 56.1: 177-207.
 Wedeman, Adrew. Double Paradox. Cornell University Press. Chapter 1. 1-14.
 Blattman, Chris. Corruption and Development: Not what you think.
http://chrisblattman.com/2012/11/05/corruption-and-development-not-what-you-think/
o MOVIE: Inside Job. 2010. Directed by Charles Ferguson. Watch on your own time.
Total Pages: 123
Week 7: Anticorruption policies and Government Responsiveness I: Accountability and
Controlling Corruption(February 19)
 Svensson, Jakob. 2005. Eight Questions About Corruption. Journal of Economic Perspectives,
19(3): 19-42. Read pages 32-36.
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
Peruzzotti, Enrique and C. Smulovitz. 2006. Social Accountability: An Introduction. In Enforcing
the Rule of Law. Social Accountability in the New Latin American Democracies, edited by
Peruzzotti, Enrique and C. Smulovitz. Pittsburgh: University of Pittsburgh Press. Chapter 1: 3-33.
 The Economist. 2009. Too Trusting. April 2.
 Klitgaard, Robert. 1988. Controlling Corruption. Berkeley: University of California Press. Chapter
1: 1-12, and Chapter 4: 98-121.
 Warren, Mark. 2006. Controlling Corruption Through Democratic Empowerment. Paper
presented at Annual Meeting of the American Political Science Association. 1-19
Total Pages: 80
Week 8: Anticorruption policies and Government Responsiveness II: What are the
Opportunities and options for Reform? (February 26)
 Paul, Samuel. 1997. “Who Will Bell the Cat?” Economic and Political Weekly, 32(23): 1350-1355.
 Spector, Bertram I., Michael Johnston, and Phyllis Dininio. 2005. “Learning Across Cases: Trends
in Anticorruption Strategies,” in Bertram I. Spector, Ed., Fighting Corruption in Developing
Countries: Strategies and Analysis, Bloomfield, CT: Kumerian Press. 213-230.
 Fisman, Raymond and Edward Miguel. 2008. “Learning to Fight Economic Gangsters,” in
Economic Gangsters: Corruption, Violence, and the Poverty of Nations, Princeton: Princeton
University Press. Chapter 8. 186-206.
 Jenkins, Rob. 2007. “Civil Society Versus Corruption,” Journal of Democracy, 18: 55- 69.
 Vanaik, Anish. 2008. “Bank Payments: End of Corruption in NREGA?” Economic and Political
Weekly, April 26. 33, 35-39.
 Ribadu, Nuhu. 2010. Show Me the Money: Leveraging Anti–Money Laundering Tools to Fight
Corruption in Nigeria. Washington, DC: Center for Global Development. Available at:
http://www.cgdev.org/content/publications/detail/1424712/. 1-59 (skim).
Total Pages: 123
Week 9: Reading Week. NO CLASS!
Week 10: Media and Corruption Scandals (March 12)
 Danner, Mark. 2008. Frozen Scandal. The New York Review of Books. 55(19). December 4.
 Waisbord, Silvio. 2000. Watchdog Journalism and Democratic Accountability. In Watchdog
Journalism in South America by Silvio Waisbord. New York: Columbia University Press. 209-242.
 Peruzzotti, Enrique 2006. Media Scandals and Social Accountability. . In Enforcing the Rule of
Law. Social Accountability in the New Latin American Democracies, edited by Peruzzotti, Enrique
and C. Smulovitz. Pittsburgh: University of Pittsburgh Press. Chapter 9: 249-271.
 Brunneti, Aymo and Beatrice Weder. 2003. A free press is bad news for corruption. Journal of
Public Economics. 87 (7/8). 1801-1824.
 Di Tella, Rafael, and Ignacio Franceschelli. 2011. Government Advertising and Media Coverage of
Corruption Scandals. American Economic Journal: Applied Economics 3 (October). 119-151
 Balán, Manuel. 2011. Competition or Denunciation: The Political Dynamics of Corruption
Scandals in Argentina and Chile. Comparative Politics. 43(4): 459-478.
Total pages: 129
Week 11: Culture, Gender, and Corruption (March 19)
 Fisman, Raymond and Edward Miguel. 2008. Nature or Nurture? Understanding the Culture of
Corruption. in Economic Gangsters: Corruption, Violence, and the Poverty of Nations, Princeton:
Princeton University Press. Chapter 4. 76-110.
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
Seleim, Ahmed, Nick Bontis. The relationship between culture and corruption: a cross-national
study. Journal of Intellectual capital. Vol 10 No 1. 165-184.
 Makin, Michelle. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies.
Chapter 1. 1-14.
 Swamy, Anand et al. 2000. Gender and Corruption. Unpublished Manuscript. 1-40.
 Nawaz, Farzana. Gender and Corruption.
 Dollar, David, Raymond Fisman, and Roberta Gatti. Are Women Really the “Fairer” Sex?
Corruption and Women in Government. Policy Research Report on Gender and Development.
Working Paper Series, no 4. 1-14.
 Dawson, Stella. Are women less corrupt? No, but they shake things up.
http://mobile.reuters.com/article/idUSBRE8B306O20121204?irpc=932
Total pages: 130
Week 12: International Aspects of Corruption (March 26)
 Schwartz, Nelson D. and Lowell Bergman. 2007. Payload: Taking aim at corporate bribery. The
New York Times, Nov 25.
 “Former Chairman and CEO of Kellogg, Brown & Root Inc. Sentenced to 30 Months in Prison for
Foreign Bribery and Kickback Schemes,” http://www.justice.gov/opa/pr/2012/February/12crm-249.html
 FCPA Resource Guide, SKIM pgs. 10-46, 68-72, 92-102, Department of Justice, November 2012,
http://www.justice.gov/criminal/fraud/fcpa/guide.pdf
 Sampson, Steven. 2010. The Anti-Corruption Industry: From Movement to Institution. Global
Crime, 11(2): 261-278.
 Davis, Kevin. 2010. Does Globalization of Anti-corruption Law Help Developing Countries? In
New York University Law and Economics Working Papers. Forthcoming in International Law,
Economic Globalization and Development, edited by Julio Faundez and Celine Tan.
 Balan, Manuel, and Lorenzo Daieff. 2013. Promoting the Rule of Law abroad: Towards a Multidimensional approach. ISID Research to Practice Policy Brief No. 28. 1-23
Total pages: 134
PART 3: Final Projects
Week 13: In-Class Presentations (April 2)
Week 14: In-Class Presentations (April 9)
FINAL PAPER DUE on April 16th!
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