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Decentralized Corruption in Germany

PAQ, Vol. 30 No. 4, (2007)

This article focuses on the link between administrative reform
and decentralized corruption in German municipalities. It argues on the
basis of survey findings, that the decentralization process of public
service delivery from core administration to public enterprises during
the last years has not only resulted in a shift of administrative authority,
personnel and financial resources to newly established public
enterprises but also in a shift towards decentralized corruption.
Findings show that the perceived quantity of decentralized corruption is
as high as bureaucratic corruption. In the course of decentralizing
public service delivery to new administrative bodies, municipalities
have missed the opportunity to adapt their audit systems. Old
corruption risks have been shifted to public enterprises and new
opportunities for corruption have been created. The data presented are
based on a survey conducted with local audit experts and analyze the
motivation, opportunity, and possibility for decentralized corruption.

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