Fraud Prevention, Political Corruption, and Anti-Corruption Strategies: The European Anti-Fraud Office

Introduction

Democracies and dictatorships are imperfect and are generally highly spoiled by corruption. Corruption is one of the most significant barriers to sustainable development (Kasa et al., 2023), as seen in large regions in developing countries. Rare exceptions can be observed worldwide, as in China, where corrupt politicians are often sentenced to the death penalty. When politicians escape unscathed from the criminal acts they have committed for their benefit, part of the population is encouraged to practice corruption, as is the case in many countries. This situation becomes even more severe when the judiciary is subservient to the legislative power and favors are managed between judges and politicians to benefit both. The reality is that democracy is not suitable for all countries, as it is not a single model that can be applied throughout the world due to cultural, social, and economic differences between nations. Many countries have dictatorial regimes, where resources and power are concentrated in a few families, so corruption is also observed in these nations.

This political corruption has a particular impact on economic crime, which tends to increase socioeconomic differences among the population. One of the ways to sustain the welfare state in the European Union (EU) is by implementing a fraud prevention system based on mechanisms to avoid tax evasion. But, economic and political decision-makers in some EU countries are defined by political corruption. As a result, some population of many EU members carries out the ‘imitation effect’ in these nations by distrusting the political system to escape unscathed from such practices, observing that the political caste carries out all kinds of criminal procedures, and many go unpunished for it. As a result, the development of a welfare society is prevented, where social differences decrease between the richest and poorest. This fact sustains balanced economic growth, mainly in the middle class. The most developed countries on the planet are characterized by having a large and enterprising middle class that creates employment and wealth whose positive effects spread and benefit the entire society.

The history of corruption must be found in the lack of transparency in public administration and in public and private institutions that do not render accounts effectively. The opacity in decision-making and the lack of consequences for corrupt acts foster a culture of impunity in the countries, accelerated by the imitation effect on the part of the population when they observe that political corruption has advantages for those who carry it out. Coupled with the bad example of corrupt rulers, the lack of a strong rule of law can allow corruption to thrive. Suppose judicial systems and law enforcement institutions are weak, inefficient, or subject to political or economic influence. In that case, it is more challenging to investigate and punish acts of corruption, as is the case in many countries, especially in Africa. Corruption can sometimes be embedded in the culture and widely tolerated or accepted as usual. If society perceives corruption as a common practice, it is more complicated to generate the change necessary to combat it.

In addition, economic inequality and excessive (and unfair) taxation can contribute to corruption. People in poverty and vulnerability may be more likely to engage in bribery to survive or improve their living conditions. At the same time, the privileges and access to resources that corruption provides can further perpetuate inequality. This socioeconomic problem is exacerbated when there is a lack of civic education, and the lack of awareness about the harmful effects of corruption can hinder citizen mobilization and participation in the fight against corruption. Education in ethics, transparency, and responsibility can be crucial in preventing corruption. Socioeconomic well-being and wealth creation are created when corruption is erased or reduced. Public-private collaboration must abolish corruption by implementing mechanisms that ideally eliminate such practices, especially those carried out at the political level, given the strong negative impact on the population that entails these practices. No country in the world is exempt from this socioeconomic reality, except for honorable exceptions in tiny nations with a small population, reduced socioeconomic inequalities, and a high quality of living achieved by many inhabitants, discouraging any corrupt practice.