Corruption, Crime, Issues

Smaller Government Is the Best Strategy for Reducing Corruption in Romania

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In 2016, there were three very worthy candidates for the highly coveted Politician of the Year Award.

  • In May, I gave the prize to Rodrigo Duterte, the newly elected president of the Philippines, because he assured voters that none of his mistresses were on the public payroll. Gee, what a swell guy!
  • In July, I had to reopen the balloting since it was revealed that the follicly-challenged President of France, Francois Hollande, was squandering more than $100,000 per year on a hair stylist.
  • And that same month, the Prime Minister of Malaysia became a strong contestant when it was revealed that hundreds of millions of dollars were mysteriously diverted from the government’s cronyist investment fund.

Well, we now have an early contestant for the 2017 prize.  And it’s going to be a group award. Romania’s Social Democrats have just voted to legalize abuse of power. I’m not joking, Here are some excerpts from a report by the EU Observer.

Romania’s left-wing government scrapped some anti-corruption rules, in a move likely to allow leading politicians to avoid criminal persecution. The cabinet of social democrat Sorin Grindeanu…passed an emergency measure to decriminalise some offences. Abuse of power will no longer be prosecuted if it is deemed to have caused financial damage of less than €44,000. …Changes will enter into force within 10 days, without need for approval by the parliament.

Image Credit: Alex D. Public Domain

Image Credit: Alex D. Public Domain

Wow. This is so absurd that I wonder whether there’s more to the story.

For instance, I wrote two years ago about the nation of Georgia getting rid of an entire division of the national police force, which sounds like a move to enable crime. But there was a story behind the story. It turns out that lawmakers in Tbilisi got rid of highway cops because the force was pervasively corrupt, basically doing nothing other than extorting money from motorists. So eliminating the force was actually an anti-corruption step.

In the case of Romania, though, I haven’t found any sign of mitigating circumstances. It appears that politicians simply want get-out-of-jail-free cards.

For what it’s worth, many Romanians are not happy that their politicians have made stealing legal.

Some 10,000 people gathered outside the government’s headquarters, calling the government “thieves” and “traitors” and imploring the cabinet to resign. …critics say the measure will clear several leading politicians who are under investigation or on trial in abuse-of-power cases. …Romania’s centre-right president Klaus Iohannis said he would refuse to swear in anyone with a criminal record. On Tuesday, Iohannis announced “a day of mourning for the rule of law”. “The government ignored the dream of millions of Romanians who want live in a country free of corruption,” he posted on Facebook. Laura Codruta Kovesi, the chief prosecutor at Romania’s National Anti-corruption Directorate (DNA), said she had only seen a draft of the bill, but its contents would render the fight against corruption in Romania “irrelevant”.

By the way, political corruption appears to be a non-trivial problem.

According to Transparency International, Romania is ranked #57 in the Corruption Perceptions Index, which is the weakest score of any EU nation other than Italy, Greece, and Bulgaria.

But let’s close with some good news. I’ve written (over and over and over again) that big government facilitates corruption. Simply stated, politicians in places like Romania (or the United States!) wouldn’t have favors to sell if the government didn’t have favors to dispense.

So if you want less corruption, shrink the size of the public sector.

And Romania is moving in the right direction. After decades of horrific communist tyranny, it became a transition economy when the Soviet Union collapsed. Ever since, like many other countries in the region, Romania has been trying to shed the shackles of statism so that a market economy can function.

There’s been some success. Romania is one of the many flat tax nations in Eastern Europe. And it ranks #22 in Economic Freedom of the World, which is rather impressive (though it only ranks #61 for the size-of-government category, so there’s obviously room for improvement).

The continuing challenge, not only in Romania, but all over the world, is convincing politicians to reduce the size and scope of government when that means they’ll have less opportunity to line their own pockets. Sort of like asking foxes to guard henhouses.

And it’s not just the fault of politicians. What can really sabotage a nation is when a sufficiently large share of the overall population decides that it’s morally acceptable to loot and mooch. In that case, politicians are simply a reflection of societal rot.

It’s much easier to restore physical capital than it is to restore cultural capital.

This is a guest post by Dan Mitchell “a high priest of light tax small state libertarianism”

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