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p>I’m a big fan of Bryan Caplan & Arnold Kling over at EconLog and in particular thought mutineers would be interested in this blogpost. Caplan analyzes a paper from Rafael Di Tella (HBS) and Robert MacCulloch (Princeton) which models the relationship between a country’s perceived level of corruption and its political orientation –
We find evidence consistent with the hypothesis that governments in poor countries have a more left wing rhetoric than those in OECD countries…The empirical pattern of beliefs within countries is consistent with this explanation: people who perceive corruption to be high in the country are also more likely to lean left ideologically and to declare to support a more intrusive government in economic matters.
Put simply, more perception of corruption = more likely to be an economic lefty. Bryan brings up the all-too-obvious consequential impact — increasing the role of govt in the economy, particulary in the midst of corruption, should increase the level of corruption overall. Caplan quotes Anne Kreuger who coined the term Rent Seeking back in 1973 –
If the market mechanism is suspect, the inevitable temptation is to resort to greater and greater intervention, thereby increasing the amount of economic activity devoted to rent seeking. As such, a political “vicious circle” may develop. People perceive that the market mechanism does not function in a way compatible with socially approved goals because of competitive rent seeking. A political consensus therefore emerges to intervene further in the market, rent seeking increases, and further intervention results.
Di Tella and MacCulloch duly note, however, that the Indian electorate seems far more intelligent about this issue and presents a very interesting exception to their general observation –
When the analysis is carried out at the individual country level an interesting exception occurs: India. In this country there is a positive and significant correlation between the perception of corruption and placing one’s views on the right end of the political spectrum, not the left.
Perhaps it’s because Desi’s have been uniquely well acquainted with the combination of
The Founding Fathers were quite prescient that the lack of angels amongst men both created and limited the scope of government; unfortunately, for the rest of the 3rd world, it seems, the population is rather swayed by appeals to use government power to bring about Cosmic Justice…
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