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Saturday, November 16, 2024

More socialism means more corruption

By: Dr Štefan Šumah

This government is indeed achieving only negative “successes”. They are succeeding in almost the impossible, as Slovenia is falling on various global rankings. The Corruption Perceptions Index is worsening, we are becoming less competitive in the economy, and we are dropping on the Economic Freedom Index… Freedom demands its due.

To avoid doing injustice to the Gibanje Svoboda party, it should be added that its share of responsibility for the declines on various global rankings, with its quasi-socialist measures, is also borne by the Levica (although, given the party whose ministers lack serious work experience, nothing else could be expected), and especially the Social Democrats. Considering the name they bear and the fact that they are one of the parties with the longest tradition of participating in various governments, one would expect more common sense from them.

If I focus on the connection between the level of economic freedom and the level of corruption in a country, I can argue that they are inseparably linked. The lower the economic freedom, the more corruption there is. This is also true in Slovenia, as we have fallen from 35th place in the Corruption Perceptions Index in 2020 to 41st place in 2022. Simultaneously, we have dropped from 32nd place on the Economic Freedom Index (a record ranking in 2021) to 37th place in 2022.

A simple comparison gives us a completely clear equation: MORE SOCIALISM = MORE CORRUPTION.

Many may say that this is too simplistic. To reassure the sceptics, there are several studies proving that open markets and economic freedom are indeed factors influencing the level of corruption (Smarzynska and Wei, 2000; Allen et al., 2015; Dimant, 2014, etc.). The less influence socialism of all kinds (red or black) has on the economy, the lower the corruption.

The more free and globally integrated the markets are, the less corruption there should be. This is also evidenced by a study conducted by Sung and Chu (2003), analysing 99 countries. The evidence from this study is affirming with some nuances. There is a strong negative correlation between the levels of integration into the global economy and the perception of corruption. According to their study, both individual effects of exports, imports, and inflows of foreign direct investment, as well as the combined impact of these economic activities, negatively influence corruption.

In short, under SVOBODA (FREEDOM), there is less freedom, both personal and economic (not to mention freedom of speech), and there is more corruption. The trend is alarming, and even worse results are expected for 2023. All of this is just a reflection of the “successful” work of the government led by the genius from GEN-I and socialist ministers literally picked up from the streets.

For sceptics (and much more can be found in scientific databases, you just have to look):

Smarzynska, B. K., & Wei, S. J. (2000). Corruption and composition of foreign direct investment: Firm-level evidence.

Allen, F., Qian, J., & Shen, L. (2015). Corruption and Competition.

Dimant, E. (2014). The Antecedents and Effects of Corruption-A Reassessment of Current.

Sung, H. E., & Chu, D. (2003). Does participation in the global economy reduce political corruption?

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