“State capture” refers to the undue influence by powerful individuals or corporations in shaping the formation of laws, policies, regulations and institutions of the state to their own advantage, at the expense of society. The concept challenges conventional notions about corruption, how it is measured, and its longstanding definition as ‘the abuse of public office for private gain.’
When the notion of state capture was advanced a quarter of a century ago, the initial focus was on powerful non-state actors that unduly influenced or “captured” the state. Initial measures relied on a survey of post-socialist economies in transition. Since then, many scholars have also included state actors as potential captors of the rules of the game.
This article first reviews the evolution of the field of state capture, followed by the development of an initial global State Capture Index that measures the evolution of state capture in 172 countries over almost three decades. The results point to important differences between traditional measures of corruption and those of state capture across many countries, and in particular to a relatively higher prevalence of state capture compared with traditional corruption measures in advanced economies. Further, over the decades, the measured extent of state capture has changed substantially for many countries, whether experiencing large increases, declines, or reversals.
The results suggest the importance of periodic measurement for ‘early warning’ in many countries at risk, for prevention strategies to avoid of a possible descent into full capture, which is much harder to reverse. And the differences across countries, and between corruption and state capture –including in that the latter may not be strictly ‘illegal’– mean that institutional and policy responses to counter state capture will need to vary from country to country, while placing more emphasis on countering undue influencing benefiting the few at the expense of society.
Understanding and measuring the state capture environment in a country is important to be able to assess possible paths towards solutions. The applied research initiative presented in this article forms a key input to the work of the Governance Action Hub, in its pursuit of audacity in governance reforms. A state capture diagnostic lens, utilizing various strands of governance data, such as presented in this article, informs the Hub’s modus operandi in countries, the potential for multi-stakeholder alliances for collective action, as well as the identification of priority actions and reforms that are attainable and impactful.
The associated data set to the research article is available for download in Excel format below. Interpretative caution applies, given the existence of margins of error in any governance dataset.
For questions and feedback on the research article, contact the author, Daniel Kaufmann. Download the full article by clicking the link above. The State Capture Index data set associated with the research article may be downloaded here.
A close version of this article is appearing as a chapter in the volume edited by Prof. Susan Rose-Ackerman (2024): “Public Sector Performance, Corruption and State Capture in a Globalized World” (Routledge).
Related resources:
1. Learn about the Governance Action Hub
2. Lecture by Daniel Kaufmann: ‘New Frontiers in Governance: State Capture and Corruption Worldwide and Implications for Asia’ (University of the Philippines, December 2023).
3. Lecture by Daniel Kaufmann: ‘State Capture and the Challenge of Governance around the World’ (University of Cape Town, September 2018).
4. Testimony by Daniel Kaufmann at the South Africa State Capture Commission of Inquiry (September 2018).
5. Worldwide Governance Indicators (WGI)
6. Presentation to UN Delegations, “On State Capture As a Major Threat To Nations and Enabler of Human Rights Violations – The Imperative of Prevention,” by Daniel Kaufmann at meeting hosted by the UN delegations from Bulgaria and Norway (New York, June 18, 2024)
7. Presentación “Gobernanza, Corrupción, y Captura del Estado en América Latina: Un Enfoque Empírico Comparativo Global” por Daniel Kaufmann en el Seminario Calidad Institucional y Democracia en América Latina (Universidad Carlos III, Madrid, 12 de Junio de 2024)
