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Research Project

CRIME AND CULTURE

THE EUROPEAN COMISSION 6TH FRAMEWORK PROGRAMME

CRIME AS CULTURE – CROATIA 2006

SCIENTIFIC REPORT – THE FIRST PHASE

Bucharest, 3–4 November 2006

Štulhofer, A.; Kufrin, K.; Čaldarović, O.;Maršić, T.; Gregurović, M.; Odak, I. & M. Detelić

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INTRODUCTION

ANTI–CORRUPTION MEASURES& PERCEPTION OF CORRUPTION IN CROATIA

– AN OVERVIEW

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A BRIEF HISTORY

• major social, political and economic transformations during the past 16 years, affected by the:– cultural legacy of state socialism– disruptions and costs caused by the 1991–1995

war– slow and party controlled process of institutional

reforms, especially in respect to privatization– authoritarian and clientelist regime of the late

president Tudjman

• led to systematic irregularities within economic subsystem and to a number of anomalies in public services

• result: widespread perception that corruption is ubiquitous

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• 2000–2006: growing political stability, strengthening of democratic institutions, improving standard of living

• but: the public perception of corruption increased

• World Values Survey – CroatiaSouth East European Social Survey Project

– "most" of public servants are corrupt

1995: 66%; 2003: +7%

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• Transparency International Croatia surveys

– corruption in Croatia is "extremely wide–spread"

2003: 48%; 2005: +7%

– corruption is "somewhat less present than three years ago"

2003: 17%; 2005: –7%

– corruption is "a lot more present than before"

2003: 12%; 2005: +7%

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• Global Corruption Barometer:

– "the level of corruption will increase over the next 3 years“

2004: 13%

2005: +17%

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• in contrast to the surveys, crime statistics suggest a decrease in corrupt activities

2001: 646 corruption related crimes were officially recorded

2002: 430 recorded cases

2003: 329 recorded cases

2004: 266 recorded cases

2005: 442 recorded cases

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• personal experience of corruption:

– 1996 (Social Capital in Croatia): 28% experienced corruption in health system

– 2004 (GCB): 9% of households with direct experience of corruption

• low–level corruption and its cultural acceptability:

– "corruption could sometimes be justified"

1995 (WWS Croatia): 40%

1999 (EVS Croatia): 25%

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• due to differences in question format and operationalization used in various surveys, it is hard to establish trends in public perception of corruption reliably

• although Croatia’s TI Index rank is rather low and has been worsening since 2001 (3.5 in 2004, ranked 57th on the list of 145 countries),no systematic research on corruption exists in Croatia, side from the Transparency International GCB annual surveys started a few years ago

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State response to corruption:

• unsufficient, although a progress has been made (primarily in the legislative area)

• main deficiencies:– low level of administrative capacity for fighting corruption

– missing legislation on the financing of political parties

– practical failure of USKOK

– monitoring problems

– insufficient transparency, oversight and accountability of the state

– lack of coordination between the authorities responsible for anti–corruption activities

– lack of training in financial investigation

– insufficient training and education for civil servants and other administrative employees

– negligible number of sanctioned corruption cases

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CURRENT SITUATION

• March 2006: the government launched the new National Anti–Corruption Program (first National Anti–Corruption Program was adopted in 2002)

• the event was carefully staged to accentuate its importance and to send a clear and loud message to the EU

• the action plans envisioned by the new strategy were promptly developed by the assigned Ministries

• the central anti–corruption office (USKOK) was finally approved for new job openings, and has expanded its operations (several highly publicized cases of corruption were processed by USKOK recently)

• the new law on the financing political parties is expected to be passed by the Parliament in 2006

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DATA GENERATION

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RESEARCH MATERIALS

• collected mostly during March–May 2006 period

• materials from all six target groups were collected

• problem: police and economy target groups (only a few documents were collected)

• project database contain a wide range of documents, including newspaper articles, the parliamentary and a municipal assembly proceedings, strategic analyses, annual reports of various state offices, the text of the new National Anti–Corruption Program, public speeches made by the PM, Minister of Justice and the leader of the largest union in the country, NGO publications and reports, etc

• a significant portion of relevant documents were made available only after direct (personal) contacts were established with institutions in question

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CASE STUDIES

• two cases studies have been selected from a larger pool of potential cases that came up through interviews with several local experts:

CASE A (high–level corruption)

financing issues related to the last presidential campaign

CASE B (low–level corruption)

corruption in homes for the elderly in the city of Zagreb

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CASE A

• presidential elections in January 2005

• 13 candidates

• main target of the analysis: financial aspect of the campaign

• alleged irregularities were reported by the media and a NGO

• the scandal: unrealistically small advertising budget reported by the ruling party candidate (just the cost of TV ads seemed larger than the sum officially reported by the candidate’s office)

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main focuses of the analysis:

a. the presentation of the case by the media and by civil society

b. the earlier process of adopting the Bill on the Financing of Presidential Elections in the Parliament in 2004

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CASE B

• admittance in homes for the elderly is free of charge and it is based on waiting lists

• the case: a client of a HE contacted a NGO (PSD) and reported number of irregularities

• NGO investigated the case and notified the local government

• PSD & popular newspaper campaign "Stop corruption" – further indications of criminal activities in the city HE's

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• an inspection of the Ministry of Health, Work and Social Care reported irregularities in the Centre

• Municipal State Attorney's Office to open the case against the manager of HE–Centre

• court ruling: not guilty ("in spite of the fact that illegal activities were committed, who was responsible for them could not be established beyond the reasonable doubt")

• the verdict was later annulled and the case transferred to the County court where it is still in procedure

• USKOK started investigating several HEs in Zagreb; the investigation is still on–going

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DATA COLLECTION

• the materials relevant for the CASE A covered four target groups: politics, the legal system, the media and civil society

• no case related documents for the two other target groups (the police and economy) were found

• the documents collected for the case study A were dated from April 2004 to July 2005

• the same four target groups were documented in the analysis of the CASE B

• some of the documents regarding the legal system were unavailable (related court case is still in procedure) and no case relevant materials could be found for the police and economy

• the documents related to the study B covered the 2003–2005 period

• for the missing target groups, general material on corruption was used instead

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METHODS

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PREPARATION FOR THE RESEARCH

• March 2006 – two training workshops:

– 1st: GT outline & examples of research

– 2nd: working with ATLAS.ti

• March, April, and May 2006 – several project team meetings have been organized to discuss:

– selection of materials to be coded

– problems regarding (un)availability of the relevant materials

– doubts regarding coding procedure

– problems with ATLAS.ti software

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CODING

• on the project consortium meeting in Istanbul, project teams have been instructed to "stick to the text" and to apply the codes that respect the text as much as possible

• initial coding (research assistants):

– in-vivo or open codes were used

– had to figure out "What does the text say?"(not "What does it really mean?")

– no more than two levels of codes (in GT terminology: codes and categories), both respecting the manifest level of text

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• special attention was devoted to:

– possible (even quite fragmentary) definitions of corruption

– elements of the corruption perception patterns

– what are the causes of corruption

– is corruption considered to be a significant social problem in Croatian society and why

– who are the victims

– who is perceived as corrupt

– how to fight corruption

– who should do what

(no strict codes have been imposed)

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• to improve the reliability of coding

– two research assistants coded each document independently

– codes were compared, difference discussed and codes finally applied to the document were set by consensus

– dilemmas and disagreements were resolved on project meetings or through consultations with senior researchers

• senior researchers: revision of codes and additional coding with eventual application of higher level codes

• on the basis of final codes applied, several distinct models of understanding corruption were built

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RESULTS: PERCEPTIONS OF CORRUPTION

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(A) TARGET GROUP POLITICS

Case A

• the emphasis was on the process of adopting the law on the financing of electoral advertising in presidential elections

• the analysis was concentrated on two key primary documents both dated before the Bill was finally passed:

a. an open letter from the President

b. the transcript of the parliamentary debate concerning the above mentioned law

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Case B

• two primary documents were used:

a. the official letter by the City Office for Health etc.

b. the document from the Ministry of Health reporting on the results of the inspection

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Summary analysis:

• the pattern of governmental position could be revisited in the speech given by the Prime Minister, on the occasion of launching the new National Anticorruption Program

• four major issues were emphasized:

1. when dealing with the state, citizens should not feel helpless anymore

2. we are fighting corruption because of our internal needs and not because of external pressures (the EU conditionality)

3. the main characteristic of the new strategy is its participative and integrative approach

4. corruption is universal – it is not specifically the Croatian problem

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• the prevailing perception of corruption in the target group politics remains unclear:

1. on local levels (the case study B) corruption is perceived as a nuisance

2. among the highest-ranking politicians it is primarily tactical, i.e. oriented towards maintenance of power and credibility building

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(B) TARGET GROUP LEGAL SYSTEM

Case A

• analysis of the case study concerning the financing of the presidential campaign was based on three public statements issued by the State Electoral Committee

• they clearly pointed out that the electoral committee feels powerless and with no authority in solving problems

Case B

• the document analysed: the Annual 2004 Report of the Office for Combating Corruption and Organized Crime

• The court case left many questions opened...

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Summary analysis:

• negative effects of the widespread public perception of corruption within legal system

• substantial delays in court ruling - fertile ground for corruption

• the position of the legal system seems complex and insufficiently clear

• parts of the legal system systematically underestimate the presence of corruption within the system

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(C) TARGET GROUP POLICE

• a single document from the Ministry of Interior – an analysis of institutional capacity and an assessment of future needs and goals, as requested by the government during the process of preparing the new National Anti-Corruption Program (adopted in 2006)

• the mentioning of internal corruption was limited to the low-level type, associated with a relatively small number of traffic and border police officers

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focused on:

– the prevention of corruption

– trust building between citizens and the police

– criminalization of bribe offering

– focus on organizational improvements

– pragmatic approach - corruption is perceived as serious and potentially explosive societal problem

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(D) TARGET GROUP MEDIA

Case A

• three primary documents covering financing of the presidential campaign.

a. "political scandal" involving the state TV

b. an article attempted to identify the motives beneath the President plea for the new law

c. a document gave voice to the criticism of the new Bill on the Financing of Presidential Election

Case B

• the case of Zagreb HEs: the perception of corruption in media reports was primarily latent; the journalists refrained from explicit accusations or condemnation

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Summary analysis:

• the media expressed a highly alert and critical stance towards corruption

• the media shared common assumptions about corruption and its impact with the NGO

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(E) TARGET GROUP CIVIL SOCIETY

Case A

• the reports of two NGOs, GONG and Transparency International Croatia (TIC) were analysed

• the reports represent reactions to the Bill on the financing of Presidential Elections

Case B

• the primary documents - three press releases and two annual reports issued by the Partnership for Social Development (PSD)

• the scandal in HE has highlighted corrupt networks of power that effectively victimize ordinary citizens

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Summary analysis:

• civil society representatives displayed a highly critical approach

• the criticism is based on the principle of the centrality of human rights, openly dealt with political corruption

• the prevailing understanding of corruption - anchored in human rights paradigm

• almost automatic suspicion toward those in power

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(F) TARGET GROUP ECONOMY

• three documents – corruption on the part of the economically relevant institutions, the Croatian Employers’ Association (CEA) and the Independent Croatian Unions (ICU).

• insight into attitudes towards and perceptions of corruption.

• the CEA believes that the corruption is a systemic phenomenon,

• the most troublesome aspects – cultural tradition that supports it

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• the ICU material - only general comments about corruption

• the legal system and economy target groups share similar perceptions of corruption

• anti-corruption steps taken so far were recognized as important, but insufficient

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CONCLUSIONS

TAXONOMIC SUMMARY OF THE FINDINGS

GROUP-SPECIFIC CONCEPTUALISATIONS AND PERCEPTIONS OF CORRUPTION IN CROATIA

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THE CASE STUDIES

CASE STUDY A

• two wider group coalitions emerge, each with specific normative belief system concerning the public character of the financial issues of the 2005 presidential elections

• 1st – the government, the parliamentary majority and the majority of members of the managing board of the Croatian public TV. Major aspect: less transparent law seemed not to be a problem

• 2nd – the political opposition, expert groups, the civil society and the State Electoral Committee, the body responsible for the legality of election process

• major aspect: a consensus regarding the basic measures that need to be enacted to clear and enforce the rules of political financing

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• two opposing perceptions or models of corruption in this case study:

a. the PR model (impression management)

– taking steps that will result in a positive public opinion impact

– efficient message about political commitment to combating corruption

b. the Expert model (professional responsibility)

– professional expertise

– rich understanding of corruption

– technically sophisticated solutions to the problem

– sometimes insufficiently sensitive to (political) context and the existing institutional capacity

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CASE STUDY B

• two models of understanding of corruption:

a. the Nuisance model

– avoidance

– corruption as a little more than a nuisance

– minimize problems and costs associated with corruption

b. the Human Rights model

– characteristic of civil society

– focuses primarily on individual costs and personal responsibility

– the importance of fundamental role of civic sector

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PERCEPTIONS OF CORRUPTION IN CROATIA

• several models can be described in regard to four main dimensions:

(1) the Public Relations model

• main elements:

– simplified, populist and/or one-dimensional definition(s) of corruption

– corruption - primarily damaging for public image of the institution/actors in question

– measures for fighting corruption are evaluated according to the PR efficiency criteria

– focuses mostly on low-level corruption

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(2) the Expert model

• main elements:

– complex and comprehensive definition(s) of corruption

– corruption is damaging socio-cultural fabric of society and is economically wasteful

– measures for fighting corruption are based on best international practice

– focuses on high-level or political corruption

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(3) the Nuisance model

• main elements:

– no clear definition of corruption

– corruption is a minor and omnipresent issue that has been overblown

– measures for fighting corruption should be ad hoc and situation-specific

– the focus is usually missing; when unavoidable, it is mostly on low-level corruption

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(4) the Human Rights model

• main elements:

– a comprehensive definition emphasizing human rights and individual responsibility;

– corruption is moral, socio-cultural and economic evil;

– measures for fighting corruption should be extremely rigorous, transparent and inclusive;

– focuses on both low-level and high-level corruption

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Two additional models could be also suggested by the documents unrelated to our case studies

(5) the Pragmatic model

• main elements:

– comprehensive definition linked to legal description

– corruption is a major social problem

– revolves around the imperative of curbing corruption

– biased towards activities that deal almost exclusively with manageable corruption

– the strategy is simple: concentrate on what is manageable and avoid what is not

– measures for fighting corruption need to be systematic, coordinated, and assisted by international aid

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(6) the Ignoring model

• main elements:

– overlooking the phenomenon of corruption

– usually ad hoc and declaratory definition(s)

– becomes problematic when it severely impedes governance

– measures for fighting corruption are largely absent

– corruption is marginalized and underestimated

– a combination of the extreme version of the P model ("corruption is unmanageable") and the N model ("corruption is but a minor issue")

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• precautions:

– models need to be seen primarily as Weberian ideal types

– in reality, models can be found only in fragments

– it would be mistaken to assume that each target group could be neatly represented by a single model

– most target groups were characterized by several different models

– by a number of elements taken from different models of corruption

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• linkages between the models and target groups

the PR model

– target group politics

– within the government and the ruling party

– partially in the legal system target group

the P model

– politics, police, partially civil society

the N model

– city government and administration (target group politics)

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the I model

– target group economy

– partially also with the legal system

the E model

– in a number of target groups - civil society (the case A), the media (the case A), politics (the parliamentary opposition) and partially economy, the legal system (the new national anti-corruption strategy) and the police

the HR model

– with civil society (the case B), politics (Ombudsman’s report) and the media (the case B) target groups

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• conclusions are tentative at best

• in some cases documents collected proved insufficient for producing conclusions

• in some other instances – the character of documents analysed were unsuitable or too ambivalent for reaching any definite conclusion

• the linkages between the (ideal-typical) models and the six target groups need to be taken with great caution

• in the next project phase (2007), existing data will be complemented by additional and more detailed information collected through interviews with key informants from all six-target groups

• the additional data should clarify the existence and attribution of the proposed models of understanding corruption