The Role of Corruption in the Balkans

by: Jennifer Newsom

Jennifer Newsom (IPD/ITED ’26) travelled to the Balkans as a part of her experiential learning experience. Here is what she learned on the trip.

Saint Sophia Church in Ohrid, North Macedonia

Corruption, broadly defined as “misuse of authority for personal or organizational gain” (B. Ashforth, V. Anand, The Normalization of Corruption in Organizations, Research in Organizational Behavior, Volume 25, 2003), is pervasive in many nations. It is especially prevalent in former Communist countries like Kosovo and North Macedonia, and both countries have struggled with corruption since their formation as independent states. In the transition from the planned economy of the former Yugoslavia to a market economy, corruption was rampant in the privatization of state resources, with political elites often manipulating new freedoms for personal gain.

Public and private corruption negatively impacts political stability, democratization, foreign investment, and development. While there is a body of literature addressing corruption, being “on the ground” with the Balkans Experiential Learning trip and engaging with individuals with direct experience with corruption provides invaluable insights into its impact on political stability and foreign investment. Such firsthand perspectives offer a unique view of the challenges and highlight the urgency of addressing corruption within these countries.

There are many manifestations of corruption, from bribery in the awarding of contracts, election interference and catering to ethnic interests in politics. In addition, entrenched (male) patronage networks and systemic corruption have hindered women’s participation in politics. These types of corruption create political instability, erode trust in government and deter foreign investment. 

Both Kosovo and North Macedonia score very low (41 and 42, respectively) on Transparency International’s perception of corruption index, where 0 is “highly corrupt,” and 100 is “very clean,” and neither country has achieved meaningful progress in recent years. The prevalence of corruption poses a substantial barrier to the European Union integration process, threatens political stability, and hinders foreign investment, potentially opening doors for malign influences from external powers like Russia and China.

The EU’s emphasis on governance reforms as a precondition for membership highlights the international dimension of combating corruption in Kosovo and North Macedonia. The region’s stability will be influenced by its success in, or failure to, address corruption.

Efforts in both countries, including legislative reforms and establishing anti-corruption mechanisms, indicate steps towards improvement. Increased transparency and active engagement by civil society are necessary for political stability and economic prosperity in Kosovo and North Macedonia, and integration into the EU will be delayed until real progress is made in combatting corruption.

My initial focus in Kosovo and North Macedonia was on business corruption, such as the payment of bribes to win contracts. However, the impact of political corruption is more pervasive and damaging. For example, political corruption and and patronage networks restrict women’s participation in politics. The impact of corruption on women’s access to politics: Insights from North Macedonia and Kosovo (L. Cvetanoska, Women’s Studies Internal Forum 95 (2022) highlights how systematic corruption and patronage networks in Kosovo and North Macedonia obstruct women’s political participation despite quotas. Another aspect of insidious political and economic corruption relates to “manipulative elites”; in a discussion at the University of Prishtina, a speaker referenced the concept of “manipulative elites,” which refers to the intricate mechanisms through which corruption is perpetuated. Understanding the dynamics of these elites is crucial in devising effective strategies to combat corruption and promote transparency, and I plan to investigate “manipulative elites” in future research projects. 

Discussions with Kosovars and North Macedonians in academics and politics revealed another significant challenge, “brain drain.” Many university-age youth leave Kosovo and North Macedonia for countries with greater economic, social, and academic opportunities. The “brain drain”, however, leads to large inflows of money from the emigres back into Kosovo and North Macedonia, highlighting the significance of diaspora engagement in development efforts. Given the lack of trust in government and the impediments posed by corruption to foreign investment, diaspora funding emerges as a critical lifeline for economic development. An interesting question arises concerning the potential use of diaspora funds to spur sustainable economic growth and mitigate the adverse effects of corruption on development.

The exploration of corruption in Kosovo and North Macedonia underscores its complicated impact on political stability, democratization, and economic and social development. Addressing corruption requires concerted efforts, including combating manipulative elites, empowering women in politics, and leveraging diaspora resources for sustainable development. By tackling corruption head-on, Kosovo and North Macedonia can resume the journey toward genuine progress and integration into the global community.

Leave a Reply