The innovative factor of delinquency in the economic sphere (cases of corruption and the shadow economy)

Abstract

Corruption and the shadow economy are critical social problems and threats, hindering society’s normal functioning and socioeconomic development. Corruption as a social phenomenon manifests itself to one degree or another in any country, exacerbating all growing contradictions in relations between society and the state, especially in crisis and transformational conditions. When developing an anti-corruption policy, it is less visible, but perhaps the most essential factors of its emergence and overcoming are often overlooked: institutional, cultural, and “cognitive”. The degree of their development is affected by the development of the shadow economy: on the one hand, they contribute to counteracting informal activity and preventing the strengthening of criminalization of society; on the other hand, they contribute to forming a “shadow” culture and institutionalising the shadow economy. The study aims to determine the influence of socio-cultural factors on the development of the shadow economy and corruption and to determine the conceptual foundations of innovative anti-corruption measures. The study examines the shadow economy and corruption as a mechanism of insufficient functionality of state institutions. It is proposed to consider the shadow economy and corruption within the model of the interaction of archetypes as institutions that generate values and the state as a system of institutions that uses these values. Several empirical studies were analyzed, the purpose of which was to determine the influence of culture on the shadow economy and corruption. The experience of Finland, which occupies the leading position in the rating of the corruption perception index as a country with the lowest level of corruption, is published. It was determined that the principles of good governance, ethical norms and recommendations are prescribed in many regulatory acts of Finland and are an essential, integral part of state management. Within the framework of the study, it is proposed to combine Weber’s research approach with the theory of institutional transformations. Institutional and innovative (technological) development includes two components – innovative, which are formed due to natural selection or design, and imitative, which arise from borrowing (transplantation) of institutions from other institutional systems. This approach is appropriate for the institutional-evolutionary strategy of forming an anti-corruption strategy of the national system “sustainable development – security”, the purpose of which can be defined as the support of the natural evolution of the existing institution (complex of institutions) within the limits of a particular strategy, including institutional innovations and borrowing. The initial (existing) institution can be “transplanted” or “developed”, or it can arise in the process of developing the internal institutional environment. According to the author, the advantage of the institutional strategy is the vast possibilities of adaptation and correction in the development process of institutions.

Keywords

• corruption
• culture
• shadow economy
• strategy
• innovation
• empirical evaluations