Corruption as an Empty Signifier Africa-Europe Group for Interdisciplinary Studies Series Editors Gregor Dobler, University of Freiburg, Germany Elísio Macamo, Basel University, Switzerland Editorial Board William Beinart, University of Oxford, UK Filip De Boeck, Catholic University Leuven, Belgium Patrick Chabal, King’s College London, UK Paul Nugent, Edinburgh University, UK Nic van de Walle, Cornell University, Ithaca, USA vOLUME 10 The titles published in this series are listed at brill.com/agis Corruption as an Empty Signifier Politics and Political Order in Africa By Lucy Koechlin LEIDEN • BOStON 2013 Cover illustration : Wooden scaffolding around new building in Dar es Salaam. ©iStockphoto.com/ LanceB Library of Congress Cataloging-in-Publication Data Koechlin, Lucy. Corruption as an empty signifier : politics and political order in Africa / by Lucy Koechlin. p. cm. — (Africa-Europe Group for Interdisciplinary Studies ; v. 10) Includes bibliographical references and index. ISBN 978-90-04-24999-8 (pbk. : alk. paper) — ISBN 978-90-04-25298-1 (e-book) 1. Political corruption—Africa. 2. Africa—Politics and government—1960– 3. Democratization—Africa. I. title. II. Series: African-Europe Group for Interdisciplinary Studies (Series) ; v. 10. Dt30.5.K644 2013 364.1323096—dc23 2013011077 this publication has been typeset in the multilingual “Brill” typeface. With over 5,100 characters covering Latin, IPA, Greek, and Cyrillic, this typeface is especially suitable for use in the humanities. For more information, please see www.brill.com/brill-typeface. ISSN 1574-6925 ISBN 978-90-04-24999-8 (paperback) ISBN 978-90-04-25298-1 (e-book) Copyright 2013 by Koninklijke Brill Nv, Leiden, the Netherlands. Koninklijke Brill Nv incorporates the imprints Brill, Global Oriental, Hotei Publishing, IDC Publishers and Martinus Nijhoff Publishers. All rights reserved. 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KU is a collaborative initiative designed to make high quality content Open Access for the public good. More information about the initiative and links to the Open Access version can be found at www.knowledgeunlatched.org. CONtENtS List of Figures, tables and Boxes ............................................................... vii Acknowledgements ........................................................................................ ix List of Abbreviations ...................................................................................... xi Introduction Corruption, Politics and Africa ..................................... 1 1. ‘Corruption ruins lives: take action!’ ............................................ 1 2. Development Discourse: Good Governance and the ‘Anti-Corruption Machine’ ......................................................... 5 3. ‘Rational’, ‘Rotten’ or ‘Routine’: What is Corruption? ............ 13 4. Discourses of Corruption, Discourses of Africa ........................ 18 5. Methodology and Organisation of the Enquiry ....................... 21 1 the Academic Discourse: Political Order and Corruption in Africa ..................................................................................................... 32 1. Introduction ........................................................................................ 32 2. Corruption and Political Development: Assimilation and Integration ....................................................................................... 37 3. the Political Economy of Corruption: Rules and Regimes ... 49 4. the Moral Economy of Corruption: values and Practices .... 62 5. the Order of Disorder: Power, Authority and Accumulation ................................................................................. 68 6. Conceptualising Corruption: the Question of Agency .......... 79 7. Conclusions: Corruption, (Dis)Order and Agency ................... 87 2 Sketching Out an Emancipatory Discourse: Corruption, Political Spaces and Social Imaginaries ...................................... 91 1. Introduction ........................................................................................ 91 2. Reinserting Politics: A Political theory of Corruption ........... 95 3. Civil Society: the Omni-Present Absence in Africa ................ 104 4. the State of the Economy ............................................................... 114 5. Organized Business Interests ......................................................... 121 6. Professional Associations in Africa .............................................. 125 7. the Politics of Corruption .............................................................. 128 Interlude A topography of Corruption in tanzania ........................ 132 1. Why a topography? .......................................................................... 133 vi contents 2. A Bird’s Eye view: Development, Governance and Corruption in tanzania ............................................................... 135 3. Qualified views of Corruption in tanzania ............................... 144 4. An Overview over Corruption in tanzania ............................... 159 3 Democratic Spaces in the Making? Professional Associations and Corruption in 2003 .................................................................... 163 1. Background: From the ‘Politics of Integrity’ (Julius Nyerere 1962–1985) to the ‘Politics of Shamelessness’ (Ali Hassan Mwinyi 1985–1995) ........................................................................ 163 2. Benjamin Mkapa (1995–2005)—‘Zero-tolerance of Corruption’ ...................................................................................... 166 3. Regulatory Framework and Anti-Corruption Institutions .... 169 4. Governance Policies in the Construction Industry ................. 178 5. Corruption and Professional Associations in the tanzanian Construction Industry .................................................................. 183 6. Hegemonies and Fixations of Corruption: Some Preliminary Conclusions ..................................................................................... 200 4 Closures of Democratic Spaces? Professional Associations and Corruption in 2010 ........................................................................ 204 1. Introduction ........................................................................................ 204 2. Jakaya Kikwete—‘A dedicated spirit of government’? .......... 205 3. Governance and Anti-Corruption Reforms in the Regulatory Framework ................................................................ 209 4. Governance Reforms in the Construction Industry ................ 214 5. Professional Associations and Corruption in the Construction Industry .................................................................. 220 6. ‘Our voice is not heard’: Perspectives on Public Officials ..... 226 7. Hegemonies and Fixations of Corruption: Conclusions in Space and time ............................................................................. 230 Conclusions Corruption, Politics and Political Order ...................... 236 1. Corruption, Development and Political Order ......................... 237 2. Reassessing the Academic Discourse on Corruption in Africa ................................................................................................. 239 3. the Politics of Corruption as an Empty Signifier .................... 248 4. Corruption, Identity and Democratic Politics .......................... 254 Bibliography ..................................................................................................... 259 Index ................................................................................................................... 281 LISt OF FIGURES, tABLES AND BOxES Figures 1. A timeline of Anti-Corruption Conventions ................................... 4 2. A timeline of Governance and Corruption Indices ....................... 9 3. World Map of Corruption 2009 ............................................................ 15 4. World Governance Index (tanzania) 1998–2008 ............................ 141 5. Personal Experience of Corruption 2003–2005 ................................ 152 6. Extent of Perceived Corruption Amongst Public Officials ........... 152 7. Causal Chain of types of Corruption According to the NGCS ... 157 8. “Percentage distribution enterprise [sic] reporting frequency of government procurement tenders being awarded in a clear and efficient manner” ......................................................................... 158 Tables 1. Corruption and Access to the Political System ............................... 44 2. Development and Governance Indicators for tanzania ............... 138 3. tanzania Integrity Index Scorecard 2007 .......................................... 142 4. Mo Ibrahim Index of African Governance: Figures for tanzania (2000–2007) ........................................................................................... 143 5. Analysis of Bribery in tanzania by Purpose ..................................... 156 6. Concepts of Corruption and Political Order .................................... 240 Boxes 1. MKUKUtA Cluster III—Goals and targets for Governance and Accountability ....................................................................................... 210 2. Goals of NACSAP II .................................................................................. 212 ACKNOWLEDGEMENtS I would like to extend my heart-felt gratitude to all the persons in the construction industry and anti-corruption institutions of tanzania. they showed great generosity and, sometimes, courage in sharing their time and expertise with me, and provided manifold insights into the institu- tional, professional and political context they are working in. I am only sorry that my research is of no greater immediate benefit to them. On an overarching level, my gratitude goes to all my friends far and near, to my colleagues across time- and landscapes, and to my family of African proportions, for endowing with me a sense of belonging and for accom- panying me on my long and winding road with a unique mixture of stoic equanimity, great warmth and relentless sense of humour. Special thanks for rigorous critique and intellectual inspiration goes to till Förster, and to Ursula Bürki, Denise Berger, Rebekka Gigon and Mirella Mahlstein for their patient support with proof-reading, formatting and compilation of tables. I owe all of the persons mentioned here a great intellectual, per- sonal and practical debt. However, any corruptions of the text are solely my own responsibility. LISt OF ABBREvIAtIONS A Answer AAt Architects Association of tanzania ACEt Association of Civil Engineers ACSPP Anti-Corruption Strategy in Public Procurement ADB Asian Development Bank AECt Association of Electrical Contractors tanzania AEO African Economic Outlook AfDB African Development Bank AG-CS Advisory Group on Civil Society and Aid Effectiveness AGM Annual General Meeting approx. approximately AQSRB Architects and Quantity Surveyors Registration Board Art Article AusAID Australian Government Overseas Aid Programme BESt Business Environment Strengthening for tanzania BPI Bribe Payers Index CCM Chama Cha Mapinduza (Revolutionary Party) CEO Chief Executive Officer CHRGG Commission for Human Rights and Good Governance CIP Construction Industry Policy CPAR Country Procurement Assessment Report CPIA Country Policy and Institutional Assessment CPI Corruption Perceptions Index CRB Construction Registration Board CRU Conflict Research Unit CSO Civil Society Organisation DAC Development Assistance Committee DANIDA Danish International Development Agency DFID Department of International Development DPP Directorate of Public Prosecutions EABI Eastern Africa Bribery Index Eng. Engineer EPA External Payment Arrears ERB Engineers Registration Board est. established xii list of abbreviations EU European Union FACEIt Front Against Corrupt Elements in tanzania FIDIC International Federation of Consulting Engineers ForDIA Forum for Democracy, Integrity and Accountability F/Y Financial Year GAO General Accounting Office GAP Global Accountability Project GDP Gross Domestic Product GGCU Good Governance Coordination Unit GNP Gross National Product HDI Human Development Index IACC International Anti-corruption Conference IAP Implementation Action Plan ICC International Chamber of Commerce IEt Institute of Engineers tanzania IFES International Foundation for Electoral Systems IMF International Monetary Fund IPtL Independent Power tanzania Limited LGA Local Government Authorities LSE London School of Economics MASP Multi-Annual Strategic Plan MDA Ministries, Departments and Agencies MID Ministry of Infrastructure Development MKUKUtA Mkakati wa Kukuza Uchumi na Kupunguza Umaskini tan- zania (National Strategy for Growth and Poverty Reduction tanzania) MMDGPR Mid-term Millennium Development Goal Progress Report MOU Memorandum of Understanding MOW Ministry of Works MP Member of Parliament n/a not available NACSAP National Anti-corruption Strategy and Action Programme NCC National Construction Council NEC National Executive Committee NGCS National Governance and Corruption Survey (tanzania) NGO Non-governmental Organisation ODA Official Development Assistance OECD Organisation for Economic Co-operation and Development OSHA Occupational Health and Safety Authorities PACI Partnership Against Corruption Initiative list of abbreviations xiii p/c per capita PCA Prevention of Corruption Act PCCA Prevention and Combating of Corruption Act PCB Prevention of Corruption Bureau PCCB Prevention and Combating of Corruption Bureau PM Prime Minister PPA Public Procurement Act PPAA Public Procurement Appeals Authority PPRA Public Procurement Regulatory Authority REPOA Research on Poverty Alleviation SDC Swiss Agency for Development and Cooperation SGACA Framework for Strategic Governance and Corruption Analysis SIDA Swedish International Development Cooperation Agency tACA tanzania Contractors Association tACECA tanzania Association of Civil Engineers tACO tanzania Association of Consultants tADREG tanzania Development Research Group tAICO tanzania Association of Informal Construction Workers tANU tanganyika National Union tI transparency International tIQS tanzania Association of Quantity Surveyors tIvEA tanzania Association of valuers and Estate Agents tLS tanzania Law Association tOR terms of Reference tsh tanzania Shillings tUCtA trade Union Congress of tanzania tZ tanzania UN United Nations UNCAC United Nations Convention Against Corruption UNDP United Nations Development Programme UNODC United Nations Office on Drugs and Crime USD United States Dollar U4 Utstein Anti-Corruption Resource Centre Q Question v versus WB World Bank IntroductIon: corruptIon, polItIcs and afrIca World is crazier and more of it than we think, Incorrigibly plural 1 1. ‘Corruption ruins lives: take action!’ 2 In the past two decades a general consensus has emerged condemning corruption as one of the most damaging factors for development. corrup- tion is seen to undermine the cohesion and strength of whole societies, to threaten precarious economic and social progress made in developing countries, and to increase the vulnerability of lives and livelihoods of the poor. What is new is not only the wave of concern, but that the condem- nation of corruption transcends all boundaries and sectors. the battle cry to ‘combat corruption’ is sounded by allies as well as formerly bitterly opposed combatants, from nGo activists and grassroots movements, to cEos of multinational enterprises and heads of government, from power- ful high-income oEcd countries to conflict and poverty-ridden southern countries. this is all the more surprising as for the greater part of the post-war period corruption was generally seen to be an a priori neutral symptom of changing societies, a kind of ‘growing pain’ of Westernising bureau- cracies and industrialising economies. although there was the odd moral tremor denouncing the vicious and retarding effects of corruption,3 until the late eighties most forms of corruption in the developing world were generally accepted as inevitable if not in all cases desirable side-effects of modernisation. corruption, “a welcome lubricant easing the path 1 Excerpt from the poem “ Snow ” by louis Macneice. for the full poem see the conclusions. 2 this is one of transparency International’s captions, to be seen on their website (www.transparency.org). 3 the most widely cited book of this era is Wraith/simpkins 1963, which famously stated: “throughout the fabric of public life in newly independent states [sic] runs the scarlet thread of bribery and corruption [. . .] which flourishes as luxuriantly as the weeds it so much resembles, taking the goodness from the soil and suffocating the growth of plants which have been carefully, and expensively, bred and tended” (Wraith/simpkins 1963: 12–13). 2 introduction to modernisation” (Huntington 1969: 69),4 was seen to serve specific func- tions, both economically and socially. conceptualising corruption as a lubricant smoothing political transi- tion, supportive of economic growth and as a facilitator in overcoming obstructive bureaucracies in third world countries fitted very neatly into the export-driven agenda of international trade and industry. for decades corruption was understood to be not only necessary to do business in southern countries, but even mutually beneficial. “corruption reduces uncertainty and increases investment” (leff 1964: 8), as an influential Harvard scholar posited in 1964.5 a particularly telling example is the bribing of foreign public officials by international business companies: until the late nineties, it was not only perfectly acceptable for northern enterprises to give bribes, it was also perfectly normal to expect foreign (southern) officials to take bribes. In other words, corruption was a gen- erally accepted, legal and even tax-deductable standard practice in many oEcd countries—business as usual. In the meantime, however, attitudes towards corruption have changed dramatically. since the end of the cold War, we have been witnessing a radical change of tide: whereas before the prevailing understanding of corruption was to view it as a relatively harmless phenomenon, since the late eighties and early nineties it is viewed as the exact opposite: a seri- ous threat undermining democracy, growth and equity. one indicator of this renewed interest in corruption is the wave of academic literature discussing corruption in relation to economic growth, political develop- ment and social cohesion.6 Given the “eerie silence” (theobald 1999: 497) that prevailed before, a “corruption eruption” (naim 1995) took place in the nineties. With new theories and empirical case-studies on corruption flourishing and cross-fertilising each other, the past three decades have greatly increased our understanding of different forms, causes and effects of corruption. typologies of corruption have been refined, transcended 4 to do him justice, Huntington undertook a more discerning analysis than this decon- textualised quote indicates. for a more detailed discussion of Huntington’s approach to corruption and political change see chapter 1, below. 5 for a more detailed discussion of early theories on corruption and political change see chapter 3, below. 6 the four volumes comprising seminal articles on corruption edited by robert Wil- liams and fellow scholars epitomise the surge of interest over the last two decade (see Williams (ed.) 2000 (Vol. 1); Williams/doig (eds.) 2000 (Vol. 2); Williams et al. (eds.) 2001 (Vol. 3); and Williams/theobald (eds.) 2001 (Vol. 4)). corruption, politics and africa 3 and regrouped;7 new theories on the political economy of corruption have been coined;8 and previously un- or underexplored fields, such as cor- ruption in the private sector (‘private-to-private corruption’)9 or popular perspectives on corruption,10 have been mapped out. Even more spectacularly, however, the spring tide of concern has swelled and washed ashore a dazzling multitude of initiatives, declara- tions and conventions in all four corners of the earth. since 1997, at least nine conventions on corruption have been adopted, spanning global, regional and topical issues of corruption (see below, figure 1). In all con- ventions, its serious repercussions on development, growth and stability are emphasised. consider for instance the african union, whose members are: “ Concerned about the negative effects of corruption and impunity on the political, economic, social and cultural stability of african states and its devastating effects on the economic and social development of the african peoples” 11 or, indeed, the opening paragraph of the preamble of the oEcd convention on the combating Bribery of foreign public offi- cials in International Business transactions: “considering that bribery is a widespread phenomenon in international business transactions, including trade and investment, which raises serious moral and political concerns, undermines good governance and economic development, and distorts international competitive conditions”,12 and subsequently proceeds to criminalise the bribery of foreign public officials. 7 for a sociological discussion of types of corruption see alatas 1990; for an excellent elaboration of fundamental problems of typologising corruption see Heidenheimer et al. 1993 or Johnston 1996; for a brief and clear-cut differentiation between petty, institutional and endemic corruption see robinson 1998; for a discussion of ‘grand’ corruption see rose- ackermann 1996 or Moody-stuart 1997; for an early analysis of rent-seeking and corruption see Hutchcroft 1997; for an analysis of systemic corruption see Johnston 1998; for an early analysis of rent-seeking and corruption see Hutchcroft 1997. 8 Groundbreaking here rose-ackerman 1978, Heidenheimer et al. (eds.) 1993 and Khan/Jomo K.s. 2000; for a more recent state-of-the-art compilation see rose-ackerman (ed.) 2006. 9 a watershed was demarcated by the oEcd edition on corruption in the private sec- tor, with contributions by renowned scholars and experts (see oEcd (ed.) 2000). 10 Here, olivier de sardan and Blundo have paved the way (olivier de sardan 1999, Blundo/olivier de sardan 2000, 2001), but see also smith 2007 for an excellent case-study on popular perceptions of corruption in nigeria. 11 see the preamble of the “african union convention on preventing and combating corruption”, adopted by the 2nd ordinary session of the assembly of the union, Maputo, 11 July 2003: 2, emphasis in original. 12 see the preamble of the “convention on combating Bribery of foreign public officials in International Business transactions”, adopted by the negotiating parties on 27 november 1997. 4 introduction (source: the author, based on data from transparency International) 13 figure 1: a timeline of anti-corruption conventions Both examples, two of many, demonstrate a new worldwide approach to the issue of corruption. they indicate a transformed understanding of north/south relations by placing the responsibility for corruption firmly within global economic and political relations. up to the early nineties, northern countries generally understood corruption to be a problem of greedy, poor and ineffective southern administrations. southern coun- tries, on the other hand, denounced it as a problem of the corrupting influence of big (northern) business. However, today the consensus across 13 see tIs website under http://www.transparency.org/global_priorities/international_ conventions/conventions_instruments (last accessed 30 april 2010). corruption, politics and africa 5 continents and sectors is that “[p]oor governance and corruption under- mine efforts in the south to fight poverty, to improve access to basic ser- vices, to establish responsible government and to improve the quality of life for all.”14 In other words, it is generally acknowledged that corruption is a global problem that affects all dimensions of political, economic and social development. anyone concerned with development and political change should therefore also be concerned with corruption. However, in spite of this general consensus on the negative correlation between corruption and development, it is not self-evident how the anti- corruption discourse impacts democratic politics. as will be explained in the following sections, my key interest is not the measurable impact or even coherence of anti-corruption policies. conversely, neither is it the impact of corruption on democratic policies. the line of thought which will be explored in the following chapters will be framed in far more polit- ical terms, for on centre stage is the question of corruption and political change: under what conditions can the discourse of corruption actually catalyse political change that leads to greater individual and social free- dom? In other words, the key interest of this book is to explore how the discourse of corruption can act as an imaginary and catalyst of political change. to undertake this study, I bring together three complementary and intertwined themes: a critical study of scholarly thought on corrup- tion and political order in africa; an outline of a political theory of cor- ruption, putting the conditions of political agency and emancipation on centre stage; and a case-study of governance, corruption and political agency in the construction industry of dar Es salaam, tanzania. In the following sections of this Introduction I shall sketch out some background ideas and concepts, in particular with regard to the devel- opment discourse that has profiled corruption and governance so prominently. 2. Development Discourse: Good Governance and the ‘Anti-Corruption Machine’ the swell of concern with corruption and development has been con- solidated in a development paradigm crystallised around the notion of 14 see the declaration of the 12th International anti-corruption conference, “towards a fairer World: Why is corruption still Blocking the Way?” Guatemala city, Guatemala, 18 november 2006. 6 introduction ‘good governance’. Indeed, it can be stated without exaggeration that cor- ruption and governance have been the most influential notions informing the development discourse since the late eighties. Interestingly, the con- cept of governance was initially developed with direct reference to Afri- can development. In a much-noted publication on “sustainable Growth in subsaharan africa” in 1989, the World Bank undertook a major transforma- tion of its development strategy, shifting from market-centred, neo-liberal policies to state-led development framed by more effective institutions and better governance (World Bank 1989). the World Bank outlined its new position by stating that african governments [. . .] need to go beyond the issues of public finance, monetary policy, prices and markets to address fundamental questions relating to human capacities, institutions, governance, the environment, population growth and distribution, and technology (World Bank 1989: 1).15 Hence, corruption was increasingly recognised as the major obstacle to good governance, to the point where (good) governance and (anti-)- corruption became almost synonymous with development: “pervasive corruption [. . .] undermines the credibility of democratic institutions and works against good governance. corruption, whether in the public or pri- vate sector, also results in the misuse of scarce resources with far-reaching effects throughout the economy” (dac/oEcd 1995: 19). this consensus culminated in 1996, when the then president of the World Bank, James Wolfensohn, famously declared the core commitment of the World Bank to fight the ‘cancer of corruption’.16 15 Equally, the World Bank’s landmark publication on the state in a changing World (1997), arguing for more effective and efficient state institutions as a precondition for eco- nomic growth, draws heavily on examples drawn from the rapaciousness and greed of african regimes and public officials. In many cases, the dysfunctional african state char- acterised by corruption epitomises the ‘bad’ governance which ‘good’ governance seeks to eradicate, with clientelism, patronage and more specific types of corruption serving as prime features of bad governance. although the concept of governance has since gained worldwide traction, it still draws particular salience from references to africa. 16 see World Bank 2000a: 1, where the reference to this ‘cancer’ is used to underscore the need for ‘new approaches’ and ‘a truly global response’ to fighting corruption. the World Bank justifies its engagement by referring to its important contributions to interna- tional anti-corruption efforts as well as its fiduciary duty to member countries. the World Bank’s approach is summed up in the following excerpt: “the Bank views corruption as a symptom of underlying institutional dysfunction, and thus employs a proactive and holistic approach that attempts to help clients strengthen governance and public sector management, to improve economic policies and legal/judicial systems, and to develop and implement specific anticorruption measures” (World Bank 2000a: 4).