A Common Tragedy: Corruption as a Tragedy of the Commons Jason van Niekerk Wits Centre for Ethics (WiCE) What can Philosophy tell us about how to fight corruption? Nothing you don’t know better at the coalface. What philosophy is good for is providing perspective on value-claims. Philosophy is thus valuable in addressing why it matters to confront corruption. Corruption as normally defined Corruption is normally understood in one of two ways: Fraud: Breaking a (possibly implicit) contract to use money in specific ways. Free-riding: Benefitting from others’ hard work without a commensurate benefit in return. Problem with the normal definitions Both views are true descriptions of corruption, and both are useful ways to understand the harm done. They have a drawback, however. Both focus on the wrongness of the wrongdoer, with little attention to the harm the wrongdoing does. An Alternative Understanding of Corruption Another way to understand corruption is as a “Tragedy of the Commons.” “Tragedy of the Commons” problems occur when individuals, rationally seeking the best outcomes for themselves, deplete a common resource, making things worse for themselves and everyone else. Tragedies of the Commons Classic Examples: Over-grazing common land Over-fishing. Newer examples: Pollution Greenhouse Gas Emission Using electricity in South Africa in the winter What “the Commons” have in common: 1 Robustness What is common across all these examples is that the common resource which is depleted is a system’s robustness: its ability to absorb damage and continue functioning. A robust system can absorb some overgrazing or overfishing; some chemical pollution; some greenhouse gasses; some heavy demand. But too much depletion, and the system loses the robustness to recover from each insult, tipping into a new, less effective equilibrium. What “the Commons” have in common: 2 The other common feature of these common resources is that we didn’t recognise them as such until we became aware that the robustness of the system was being reduced. Grazing land’s fertility, fish population’s capacity to regenerate numbers, natural environments’ capacity to absorb pollution, the atmosphere’s stability, Eskom’s capacity to provide base-load electricity: none seemed like limited resources until they became limited. Common Resource in Corruption? Q: So what is the common resource depleted by corruption? A: Trust in the fairness of the system. Adam Smith argued that monopolies stifle economic innovation because new players in markets dominated by monopolies cannot trust that their efforts will be fairly repayed. Fairness as a Common Resource Similarly to Smith, philosopher Patricia Werhane has argued that stock trading environments where insider-trading is rampant discourage newcomers from participating or taking significant risks, knowing that the rules they play by are not applied evenly. Fairness as a Common Resource In the same vein, we might say that public trust in the fairness of society’s mechanisms is the resource which grants the system robustness. The system can absorb some corruption, some bribery, some tender-fixing, and continue to function. But only because it is trusted that society’s systems are generally fair. A society without trust in the general fairness of public systems collapses into a new equilibrium, in which processes are less effective, and incentives to participate are radically reduced. Accountability and Public Trust In this context, Accountants exposing corruption are not simply reporting the wrongdoing of others. Rather, by holding persons accountable, they are reinforcing accountability and thus can be understood as conserving the resource that is public trust in the system’s fairness.
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