Published online by Cambridge University Press: 25 September 2012
Studies of the link between state capacity and development often utilize national-level governance indicators to explain fine-grained development outcomes. As capacity in some bureaucratic agencies matters more for these outcomes than capacity in others, this work proxies for capacity within the set of relevant agencies by using a measure of ‘mean’ capacity across all agencies in a polity. This practice is problematic for two reasons: (1) within-country, cross-agency diversity in capacity often overwhelms the variation encountered across public sectors considered in their entireties; (2) national-level reputations for capacity are not particularly informative about differences in capacity in functionally equivalent agencies in different countries. The article draws on the author's survey of public employees in Bolivia, Brazil and Chile to establish these points.
Woodrow Wilson Department of Politics, University of Virginia, Charlottesville (email: dwg4c@virginia.edu). The author would like to thank Jorge I. Dominguez, Peter Hall and Steven Levitsky for advice and support in carrying out this project. The helpful comments of John Echeverri-Gent, Eddy Malesky, David Waldner and three anonymous referees are greatly appreciated. In Bolivia, thanks go to Andrés Zaratti, Giovanna Mendoza, Walter Guevara Anaya, George Gray Molina, Juan Antonio Morales and René Antonio Mayorga; in Brazil, to David Fleischer, Paulo Calmon, Yves Zamboni Filho, Anali Cristino Figueirido and Gustavo Freitas Amora; in Chile, to Claudio Fuentes, Gonzalo Biggs, Alejandro Ferreiro, Steven Reifenberg and the late Luciano Tomassini. The data utilized in this study are available from the author upon request. Additional material is to be found in an appendix online at http://dx.doi.org/10.1017/S0007123412000403
1 Mauro, Paulo, ‘Corruption and Growth’, Quarterly Journal of Economics, 110 (1995), 681–712CrossRefGoogle Scholar
Mauro, Paulo, ‘The Effects of Corruption on Growth, Investment and Government Expenditure: A Cross-Country Analysis’, in Kimberly A Elliott, ed. Corruption in the Global Economy (Washington: Institute for International Economics, 1997), pp. 83–108CrossRefGoogle Scholar
Kaufmann, Daniel, Kraay, Art, and Zoido-Lobatón, Pablo, ‘Governance Matters’, World Bank Policy Research Working Paper No. 2196 (1999); Peter Evans and James E Rauch, ‘Bureaucracy and Growth: A Cross-National Analysis of the Effects of “Weberian” State Structures on Economic Growth’, American Sociological Review 64 (1999), 748–65Google Scholar
2 Abramo, Claudio Weber, ‘How Much Do Perceptions of Corruption Really Tell Us? Economics: The Open-Access, Open-Assessment E-Journal, 2 (2008), 1–56CrossRefGoogle Scholar
Rose, Richard and Mishler, William, ‘Experience versus Perception of Corruption: Russia as a Test Case’, Global Crime, 11 (2010), 145–63CrossRefGoogle Scholar
Olken, Benjamin A., ‘Corruption Perceptions vs. Corruption Reality’, Journal of Public Economics, 93 (2009), 950–64CrossRefGoogle Scholar
Razafindrakoto, Mireille and Roubaud, François, ‘Are International Databases on Corruption Reliable? A Comparison of Expert Opinion Surveys and Household Surveys in Sub-Saharan Africa’, World Development, 38 (2010), 1057–69CrossRefGoogle Scholar
Treisman, Daniel, ‘What Have We Learned about the Causes of Corruption from Ten Years of Cross-National Empirical Research?’ Annual Review of Political Science, 10 (2007), 211–44CrossRefGoogle Scholar
3 Glaeser, Edward, Porta, Rafael LaLopez-de-Silanes, Florencio and Shleifer, Andrei, ‘Do Institutions Cause Growth?’ Journal of Economic Growth, 9 (2004), 271–303CrossRefGoogle Scholar
4 Christiane Arndt and Charles Oman, Uses and Abuses of Governance Indicators (Paris: OECD Development Centre, 2006)Google Scholar
Marcus J. Kurtz and Andrew Shrank, ‘Growth and Governance: Models, Measures, and Mechanisms’, Journal of Politics, 69 (2007), 538–54CrossRefGoogle Scholar
5 Thomas, Melissa, ‘What Do the Worldwide Governance Indicators Measure?’ European Journal of Development Research, 22 (2010), 31–54CrossRefGoogle Scholar
Langbein, Laura and Knack, Stephen, ‘The Worldwide Governance Indicators: Six, One, or None?’ Journal of Development Studies, 46 (2010), 350–70Google Scholar
6 The PB-GIs utilized include the World Bank Institute's Worldwide Governance Indicators (WGI), Transparency International's Corruption Perceptions Index (TI-CPI), and indices generated by Political Risk Services Group's International Country Risk Guide, the World Economic Forum's Global Competitiveness Survey, and Business International.
7 World Bank, Bolivia: From Patronage to a Professional State, 2 vols., Report No. 20115-BO (2000).
8 Leyton, Alberto, ‘Administrative Reform Program: The Case of Bolivia’, in Shahid A. Chaudhry, Gary J. Reid and Waleed H. Malik, eds, Civil Service Reform in Latin America and the Caribbean: Proceedings of a Conference (Washington, D.C.: World Bank, 1994), pp. 158–65Google Scholar
9 Confidential interview with an official belonging to the Unidad de Análisis de Polticas Sociales y Económicas (UDAPE), La Paz, Bolivia, July 2003.
10 Graham, Richard, Patronage and Politics in 19th Century Brazil (Palo Alto, Calif.: Stanford University Press, 1990)Google Scholar
11 David V. Fleischer, Corruption in Brazil: Defining, Measuring, and Reducing (Washington, D.C.: CSIS, 2002).
12 Bresser-Pereira, Luis C., Reforma do Estado para a Cidadania: A Reforma Gerencial Brasileira na Perspectiva Internacional (Braslia: ENAP, 1998)Google Scholar
13 Nunes, Edson, A Gramática Poltica do Brasil: Clientelismo e Insulamento Burocrático (Rio de Janeiro: Jorge Zahar Editor, 1997)Google Scholar
Torres, Marcelo D. de Figueiredo, Estado, Democracia e Administração Publica no Brasil (Rio de Janeiro: Editora FGV, 2004)Google Scholar
14 Burki, Shahid J. and Perry, Guillermo E., Beyond the Washington Consensus: Institutions Matter (Washington, D.C.: World Bank, 1998)CrossRefGoogle Scholar
15 Brescia, Maura, Manos Limpias: La Corrupción en las Empresas Públicas (de Todos los Chilenos), 1980–2001 (Santiago: Editorial Mare Nostrum, 2001)Google Scholar
16 Marcel, Mario, ‘Effectiveness of the State and Development Lessons from the Chilean Experience’, in Guillermo E. Perry and D. M. Leipziger, eds, Chile: Recent Policy Lessons and Emerging Challenges (Washington, D.C.: World Bank, 1999), pp. 265–325Google Scholar
17 Petras, James, Politics and Social Forces in Chilean Development (Berkeley: University of California Press, 1969)CrossRefGoogle Scholar
Valenzuela, Arturo, ‘Parties, Politics and the State in Chile: The Higher Civil Service’, in Ezra N. Suleiman, ed., Bureaucrats and Policy Making: A Comparative Overview (New York: Holmes and Meier, 1984), pp. 242–79Google Scholar
18 Eckstein, Harry, ‘Case Study and Theory in Political Science’, in Fred I. Greenstein and Nelson W. Polsby, eds, Handbook of Political Science: Strategies of Inquiry (Reading, Mass.: Addison-Wesley, 1975), pp. 79–137Google Scholar
19 While in theory it might have been possible to find cases even further apart on overall reputations for bureaucratic capacity than the countries considered here, almost any such alternative set of cases would be likely to exhibit such marked differences in the internal organization of the public bureaucracy, language and cultural background that performing the type of survey-based comparisons presented in these pages would be infeasible.
20 The institutions included in the survey were as follows: Bolivia: Central Bank (n = 183), Customs Service (n = 107), Ministry of Peasant Affairs (n = 73), Ministry of Economic Development (n = 67), Ministry of Sustainable Development (n = 89), National Institute of Agrarian Reform (n = 53), National Tax Service (n = 138), National Road Service (n = 109), Productive Social Investment Fund (n = 43), Agrarian Superintendency (n = 16), Superintendency of Banks (n = 60), General Superintendency (n = 23), Superintendency of Hydrocarbons (n = 27), Superintendency of Pensions, Securities and Insurance (n = 50); Brazil: Central Bank (n = 200), Federal Revenue Service, RF (n = 127), Development Corporation for the São Francisco and Parnaíba Valleys, CODEVASF (n = 75), Ministry of Agrarian Development, MDA (n = 46), Ministry of Social Development, MDS (n = 140), National Agency of Land Transport, ANTT (n = 76), National Department of Transportation Infrastructure, DNIT (n = 198), National Institute of Colonization and Agrarian Reform, INCRA (n = 129), National Social Security Institute, INSS (n = 166), Superintendency of Private Insurance, SUSEP (n = 69); Chile: Customs Service (n = 152), Institute of Agricultural Development (n = 84), National Development Corporation, CORFO (n = 98), Superintendency of Banks (n = 69), Superintendency of Pension Fund Managers (n = 74), Superintendency of Securities and Insurance (n = 117).
21 Gelman, Andrew and Hill, Jennifer, Data Analysis Using Regression and Multilevel/Hierarchical Models (Cambridge: Cambridge University Press, 2007)Google Scholar
22 Gelman and Hill, Data Analysis Using Regression and Multilevel/Hierarchical Models, pp. 490–4Google Scholar
23 Mainwaring, Scott P., Bejarano, Ana M. and Leongómez, Eduardo Pizarro eds, The Crisis of Democratic Representation in the Andes (Palo Alto, Calif.: Stanford University Press, 2006)Google Scholar
24 Johnson, Valen E. and Albert, James H., Ordinal Data Modeling (New York: Springer, 1999)CrossRefGoogle Scholar
25 Quinn, Kevin M., ‘Bayesian Factor Analysis for Mixed Ordinal and Continuous Responses’, Political Analysis, 12 (2004), 338–53CrossRefGoogle Scholar
26 Rauch, James and Evans, Peter, ‘Bureaucratic Structure and Bureaucratic Performance in Less Developed Countries’, Journal of Public Economics, 75 (2000), 49–72CrossRefGoogle Scholar
Kaufmann, Daniel, Mastruzzi, Massimo and Zavaleta, Diego, Reforms, ‘Sustained Macroeconomic, Rodrik, Tepid Growth: A Governance Puzzle in Bolivia?’ in Dani ed., In Search of Prosperity: Analytic Narratives on Economic Growth (Princeton, N.J.: Princeton University Press, 2003)Google Scholar
World Bank, Understanding Public Sector Performance in Transition Countries: An Empirical Contribution, Report No. 30357 (2003)Google Scholar
Yemane Desta, ‘Designing Anti-Corruption Strategies for Developing Countries: A Country Study of Eritrea’, Journal of Developing Societies, 22 (2006), 421–49CrossRefGoogle Scholar
Fjeldstad, Odd-Helge, ‘Corruption in Tax Administration: Lessons for Institutional Reforms in Uganda’, in Susan Rose-Ackerman, ed., International Handbook on the Economics of Corruption (Cheltenham, Glos.: Edward Elgar, 2006), pp. 484–511Google Scholar
27 Gelman, Andrew and Pardoe, Ian, ‘Average Predictive Comparisons for Models with Nonlinearity, Interactions, and Variance Components’, Sociological Methodology, 37 (2007), 23–51CrossRefGoogle Scholar
28 Gerard Caprio, Daniela Klingebiel, Luc Laeven and Guillermo Noguera,‘Banking Crises Database,’ World Bank (2003). Available at: http://www1.worldbank.org/finance/html/database_sfd.html.
29 Post-communist states are given the bureaucratic quality score which corresponds to the first year they enter the ICRG dataset.
30 Barth, James R.Jr, Gerard Caprio and Levine, Ross, ‘The Regulation and Supervision of Banks around the World: A New Database’, World Bank Policy Research Working Paper No. 2588 (2001)CrossRefGoogle Scholar
31 The first two indicators come from World Bank, ‘World Development Indicators’ (2011). Available at: http://data.worldbank.org/data-catalog/world-development-indicators. The latter indicator comes from the aforementioned Barth, Caprio and Levine, Bank Regulation and Supervision Database.
32 Campos, J. Edgardo and Pradhan, Sanjay ed., The Many Faces of Corruption: Tracking Vulnerabilities at the Sector Level (Washington, D.C.: World Bank, 2007)CrossRefGoogle Scholar
Putnam, RobertLeonardi, with Robert and Nanetti, Raffaella Y., Making Democracy Work: Civic Traditions in Modern Italy (Princeton, N.J.: Princeton University Press, 1993)Google Scholar
33 Tendler, Judith, Good Government in the Tropics (Baltimore, Md.: Johns Hopkins University Press, 1997)CrossRefGoogle Scholar
34 Gelman and Hill, Data Analysis Using Regression and Multilevel/Hierarchical Models, pp. 419–23Google Scholar