Discovering the Dark Side of Power: The Principal’s Moral Hazard in Political-Bureaucratic Relations

Principal agent (PA) is among the most prominent concepts for analyzing the relationship between politics and bureaucracy. Nonethelesss, the inherent bias of PA scholars to attribute moral hazard almost exclusively to the agent, usually referred to as “bureaucratic drift”, requires re-examination. Building on the spare literature in which moral hazard of the principal is considered, this paper provides empirical evidence for a neglected aspect of the PA concept. Three cases of German regulatory agencies responsible for drug control, financial services and rail safety are analyzed in critical situations which were largely perceived as bureaucratic failures. The analysis reveals that a good deal of these failures, ranging from negligence to suppressing crucial information, has to be attributed to the political principal. This is called the dark side of power because the intention is to shift blame or to dodge political responsibility. Turning conventional PA reasoning upside down, the conclusion is that the principal’s moral hazard should be considered more routinely as a potential explanation for political-bureaucratic interactions.     

Social Learning,Self-Control,and Offending Specialization and Versatility among Friends

American Journal of Criminal Justice - While it is generally understood that people tend not to specialize in specific types of deviance, less is understood about offending specialization and...     

Peace-building and the predatory political economy of insecurity: evidence from Cambodia,East Timor and Afghanistan

International peace-building interventions in post-conflict countries are intended to transform the socio-political context that led to violence and thereby build a stable and lasting peace. Yet the UN's transitional governance approach to peace-building is ill-suited to the challenge of dealing with the predatory political economy of insecurity that often emerges in post-conflict societies. Evidence from peace-building attempts in Cambodia, East Timor and Afghanistan illustrates that the political economy incentives facing domestic elites in an environment of low credibility and weak institutionalisation lead to a cycle of patronage generation and distribution that undermine legitimate and effective governance. As a result, post-conflict countries are left vulnerable to renewed conflict and persistent insecurity. International interventions can only craft lasting peace by understanding the political economy of conflict persistence and the potential policy levers for altering, rather than perpetuating, those dynamics.