“…Hence, the policy instruments used have primarily been designed to influence the number of transactions over which public officials at various levels have discretion, the value of the bribes offered (i.e., the scope of gains from each transaction), the probability of being detected, as well as the loss incurred by being detected (i.e., the penalty for corrupt activities) (Klitgaard 1988; Shah 2007). In particular, to “close the loopholes for corruption” (UNDP 2004, 9), the international community prescribes a “holistic anticorruption strategy,” targeted at reducing discretion of public officials through privatization, deregulation, and meritocratic recruitment; reducing monopoly by promoting political and economic competition; increasing accountability by supporting democratization and increased public awareness (for political accountability) and bureaucratization (for administrative accountability); improving salaries of public officials, thereby increasing the opportunity cost of corruption if detected; improving the rule of law so that corrupt bureaucrats and politicians can be prosecuted and punished; and encouraging greater transparency of government decision making through deepening decentralization, increased public oversight through parliament, an independent media, as well as through the creation and encouragement of civil society watchdogs (Galtung 1998; Ivanov 2007; Langseth, Stapenhurst, and Pope 1999; Lawson 2009; Transparency International 2000; UN 2004; UNDP 2004; World Bank 2000). In sum, the contemporary global anticorruption agenda involves a large number of institutional reforms aimed at reducing the opportunities and incentives for corruption in line with the logic of the principal–agent framework.…”