Transparency and Corruption: The Conditional Significance of a Free Press

Is making political institutions more transparent an effective method for combating corruption? Common wisdom in the debate and research on the causes of corruption answers strongly in the affirmative. We argue that this optimistic view is both right and wrong. Transparency may be an important medicine against corruption, but only under certain conditions. In order to capture this conditionality the concept of transparency must be distinguished from the interrelated but qualitatively different concepts of publicity and accountability. Facing increased risks of having information about ones bad behaviour made publicly available (transparency) is not enough to affect elite actors’ behaviour, if the information is not likely to be broadly spread, processed and utilised as a ground for putting sanctions on these actors. The theoretical argument is tested in the paper by analyzing the interaction effects between the degree of freedom of the press (as indicia of transparency), free and fair elections (indicating the presence of an accountability mechanism) and the level of education (a condition for publicity) in a cross-country study of 107 countries. The results demonstrate that the failure of previous research to analyze interaction effects have led scholars to draw inadequate and misleading conclusions about the link between transparency, democracy and corruption. Furthermore, it is argued, these findings will help to solve a puzzle in the previous research on democracy and corruption. Taken one at a time transparency and free and fair elections will not help much to reduce corruption. Taken together, on the other hand, they can be a powerful team