Abstract
The paper examines possible EU enlargement in Western Balkans from the point of view of corruption. Transparency International warns from the risks of acceleration and spreading of corruption in economic integration between states with different levels of integrity, and draws ambitious guidelines for optimal anti-corruption policy. The paper aims for policy advices concerning proper policy. The method is, first, to compare the candidate states to the current 28 EU states in terms of corruption and the quality of governance. Second, the paper briefly surveys the relevant literature on the macroeconomic effects of corruption, which shows that in countries that are imprinted by both corruption and bad governance, particularly in terms of rule of law and government effectiveness, a straightforward attac on corruption is hopeless, and it may even be economically detrimental. The conclusion is that following the guidelines given by Transparency International is a too winding path to take, and it is almost impossible to set full integrity as a precondition to entry. Optimal policy to avoid contagion of corruption is to focus not on the candidates, but on the existing EU28, and particularly on their close neighbors. This can be done best by concentrating on international business transactions, namely by strict enforcement of the OECD anti-corruption convention. The EU should pressure all member states to uniform commitment to it. After the entrance, rooting out of corruption and enhancement of formal governance in the new member states can then be carried out in due course. DOI: http://dx.doi.org/10.5755/j01.eis.0.12.21524
Highlights
Transparency International (2015) has highlighted the risk that economic integration and opening borders for trade may make corruption accelerate and spread from more corrupt countries to less corrupt ones. This fear is quite evident with the Western Balkan candidate countries, since corruption is a persistent problem within them and concerns many of their close neighbors and trade partners, too
Transparency International provides quite ambitious guidelines as conditions for integration that would necessitate a deep reorientation within the whole EU
The research task is to show that the candidate countries suffer from bad governance, including corruption, and that the suggested linkage to the EU single market may expose their trading partners, especially in the close neighborhood, to contagion of corruption
Summary
Transparency International (2015) has highlighted the risk that economic integration and opening borders for trade may make corruption accelerate and spread from more corrupt countries to less corrupt ones This fear is quite evident with the Western Balkan candidate countries, since corruption is a persistent problem within them and concerns many of their close neighbors and trade partners, too. Croatia is the only EU member state in that region, and the rest of the Balkan states are either official candidate countries, including Albania, Macedonia, Montenegro, and Serbia, or potential candidate countries, including Bosnia and Herzegovina, and Kosovo This time, the enlargement process is somewhat different than before (European Parliament Think Tank, 2016).
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