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political and business elites were tightly linked

groups in Central Europe, allowed corrup-

by family and business ties. Local politicians, it

tion to metastasize at the local level, where

turned out, were protected by some members

enterprising mayors and city councilors have

of the Polish government, including Zbigniew

turned regional politics into a gold mine.

Sobotka, the deputy minister of internal affairs

Building permits are an especially attrac-

in the socialist governments of Jozef Oleksy

tive source of extra income. Local business-

(1995­1996) and Wlodzimierz Cimoszewicz

men who want to build a factory or a ware-

(1996­1997), who warned them about pend-

house, for example, have to petition the city

ing police actions.61

officials for a building permit. As a conse-

quence, building sites are much more expen-

The widespread nature of corruption in

sive than land designated for farming. The

Central Europe makes "clean" government

change in designation is in the hands of city

immensely difficult to achieve. For example,

councilors. In such circumstances, entrepre-

Slovak voters perceived Dzurinda's government

neurs sometime intervene in the political

as corrupt, but the new Slovak government is

process by "buying" the mayor or the majori-

likely to be even more so. After all, Meciar is a

ty of the city councilors. That way, they may

part of it. Similarly, in the Czech Republic, the

buy agricultural land and have it re-designat-

fall of the liberal government in 1997 did not

ed for building purposes.

end political corruption. If anything, corrup-

Consider the following example. Under the

tion under the Social Democrats, the CPI for

terms of the 2005 investment deal between

the Czech Republic suggests, increased.

Slovakia and KIA, the South Korean car maker,

Kicking out the incumbent is the most

the Slovak government agreed to a large finan-

readily available punishment the electorate can

cial subsidy that included spending $17.6 mil-

exercise over its corrupt leadership. Then the

lion on housing for the South Korean factory

game of political musical chairs begins anew.

managers. Seeing an interesting investment

That is the main reason why only two prime

opportunity, a Slovak businessman named

ministers have been returned to power in the

Vladimir Duris bought land in the village of

region since the collapse of the Berlin Wall.

Krasnany, next to the KIA factory building site.

One was Slovakia's Dzurinda, who was reelect-

The ostensible goal of the investment was agro-

ed in 2002, partly because Meciar's excesses

tourism--a new form of business that involves

were so large and still fresh in people's memo-

tourists visiting eco-farms, eating homegrown

ry, and partly because Dzurinda presided over

products, and learning about the countryside.

a brand new coalition government with little

Since agro-tourism does not qualify as real

resemblance to the previous one. The other

estate development, Duris was able to purchase

was Hungary's Ferenc Gyurcsany in 2006.

the land for $5 per square meter. (In contrast,

Corruption scandals do not lead to public

land for real-estate development in the

fury and cynicism toward the democratic

Krasnany area sells for between $12 and $17.) In

process alone. They also undermine the val-

doing so, he received assistance from the mayor

ues that are beneficial to the nation as a

of Krasnany, Jozef Trnka, who helped Duris to

whole. In particular, those values include

Future reformers

convince the villagers of the buyout's financial

honesty, trust, thrift, self-reliance and a faith

should focus on

advantages. After the purchase, Trnka managed

in the benefits of hard work. All of those atti-

tackling the

to get the land designation changed. That

tudes, it should be mentioned, are very

change enabled Duris to use the acquired land

important for the smooth functioning of the

underlying causes

to build a housing compound for the South

free market. It is tragic that many of the

of corruption,

Koreans and pocket the difference between the

ostensibly liberal politicians in the region

such as the size

value of the land before and after the change in

have not lived up to the principles they

designation.

espoused. They have helped to discredit liber-

and scope of

Another scandal concerns the Polish

al parties through their actions in a way that

the state.

municipality of Starachowice, where the local

was similar to the corrupt practices of nomi-

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