Public Choice Theory: The Principal-Agent Theory Of Corruption

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Groenendijk (1997) in his Journal Article of Crime, Law and Social Change that principal-agent theory is a sub set of political corruption. The principal-agent theory of corruption is categories into two; the principal (one which is corrupting) and an agent (one who is corrupted). The principal-agent model is used to political corruption in representatives democracies yet not limited to bureaucratic corruption. According to Handbook of Dispute Resolution by Michael and Robert (2005), who categories Agents and principals are different in three ways; first, the agent may have different choice to work for his/her principal. Secondly, the incentives for agent may differ from principal. Third, the agent may receive different rewards than principal. Therefore, it may result supervision, incentives, coordination and strategy.
2.4.2. Public Choice Theory
Dye, 2005 in his book of understanding Public Policy focusing on rational choice theory as
…show more content…
The Administrative factors
Absent of code of conduct in most of developing countries for civil servants or public officials to distinguish between what is ethical or unethical (right or wrong). Lack of polices for day to day supervision of staff. For instance, the Audit chamber, to audit all the institutions and anti-corruption should report to judiciary for prosecution of corrupt officials. The administrative institutions has role to serve the interest of the public to connect, gives proper guidelines principles concerning laws, markets, competition, and in order to insulate people from inherent and outward serious causes such as corruption
2.5.5. Legal factors
Due to interference in judicial system by the political leadership may unmotivated judges or prosecutors to hold behind in executing laws. According to Treisman (2000), argues that corruption defend on the formulations of legal system and original acts of laws and the ways government practices to enforced those laws, this is refer termed known as ‘legal

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