Corruption In The Baltic State Region

Abstract

The corruption studied here includes illegal, immoral, or dishonest acts that undermine economic and government activities. This gray area of economic activity is often referred to as the “underground economy,” and the number of individuals and the amounts of money involved can only be ascertained by educated guesses. Corruption is used to mean a state of progressive putrefaction; on a large scale corruption curtails a country’s ability to grow efficiently and effectively. The European Bank for Reconstruction and Development (EBRD) and the World Bank have developed a methodology to study transition economies. Through one-on-one interviews the Business Environment and Enterprise Performance Survey (BEEPS II 2002) gathered information from business owners and managers on a variety of topics in 23 transition economies. This paper uses the BEEPS data to examine the perceptions of corruption in Estonia, Latvia, Lithuania, and Poland.

Slow strengthening of Latvia’s resilience in preventing and combating corruption: an analysis of causes

“…L. Bennich-Björkman turned attention to the risks that hinder the stability of democracy in the Baltic states. The Baltic region was also studied as a grey area of economic activity, with an indication of the functioning of the "underground economy" there (Wadsworth et al 2010). Researchers noted the interdependence of corruption and state capture.…”

A Moral Bureaucracy: Enforcement of EU Fundamental Values in Central and Eastern Europe

“…Yet neither the 'dead letters' perspective from Falkner and Treib nor Ganev's description of corruption through EU structural fund transfers can explain the exception of the Baltic states (for the purposes of this paper, Estonia, Latvia, and Lithuania). Despite their short-lived EU membership and their soviet legacy, the Baltic states are star compliers and fall into neither the 'dead letters' nor high corruption categories (Wadsworth, Swartz, & Wheat, 2010). In fact, not only do these three countries actively try to distance themselves from the rest of post-socialist Europe, but politicians from these countries have echoed their citizens' anger and dismay at being called such.…”