This research aims to resolve the problem of reversed causality on democracy and corruption by comparing Indonesia's local politics. Statistical research shows that democracy can curb corruption, yet others demonstrate that corrupt networks can impede...
This research aims to resolve the problem of reversed causality on democracy and corruption by comparing Indonesia's local politics. Statistical research shows that democracy can curb corruption, yet others demonstrate that corrupt networks can impede democratic development. This study argues that power structure, defined as distributional patterns of political resources, acts as a mediatory variable for democracy and corruption. It finds that regions with a dispersed power structure – indicated by a diversified economy and robust civil society – are relatively successful in curbing corruption because politicians have more political resources such as campaign funding from less demanding actors and public support. Meanwhile, regions with a concentrated power structure are prone to corruption because politicians have limited financial options from powerful backers who can bind their loyalty.