Understanding Variation in Corruption and White-Collar Crime
This chapter examines the internal and external causes of variations in corruption and white-collar crime through a comparative case study of Georgia and Armenia. From the domestic perspective, different outcomes in relation to ethnic conflicts, as well as differences in terms of the political elite’s stability (a radical changeover of political elites in Georgia versus a continuation of existing elite networks in Armenia), explain the varying degrees of corruption and white-collar crime rates between the two states. From the external dimension, this chapter states that the varying attitudes toward Russia and amenability to Western influence have provided different incentives for reform in Georgia and Armenia, and resulted in different outcomes with reference to corruption.