Government failures, rent-seeking and corruption risks - summary
January 2010, Budapest Corvinus University Corruption Research Centre
Good governance is a common good, and thus contributes to the welfare of a nation both in the long and the short run. Our research investigates how state regulation in Hungary after the millennium on the special electricity market is intertwined with phenomena described by economic sciences as rent-seeking, corruption and government failure. Our analysis primarily reconstructs the history of regulations based on two case studies using currently available documents and interviews conducted with participants and experts. One of them is about the so-called “energy market liberalization”, while the other covers the distribution of wind farming quotas. For detailed results we have used socio-economic and economic analysis tools as well as attempted to restore historic events.