Professional Documents
Culture Documents
The Social Life of Corruption in Latin America
The Social Life of Corruption in Latin America
The Social Life of Corruption in Latin America
To cite this article: Donna M. Goldstein & K. Drybread (2018) The social life of
corruption in Latin America, Culture, Theory and Critique, 59:4, 299-311, DOI:
10.1080/14735784.2018.1531816
ABSTRACT
This essay serves as the introduction to the special issue titled, ‘The
social life of corruption in Latin America’. The six authors featured in
this special issue of Culture, Theory and Critique exhibit a range of
scholarship around questions of corruption and anti-corruption in
the region. All have been involved in long-term ethnographically
based research projects in particular locations in Latin America,
including Brazil (three contributions), Peru (one contribution),
Colombia (one contribution) and Ecuador (one contribution). In
this special issue, these engaged regional scholars turn their
attention to the theme of corruption in ‘parts known’, that is,
within sites where they have already established deep connections.
million leaked documents detailing personal financial information about public officials
from around the world – some of whom are quite wealthy individuals. Taken together,
the documents outline the mechanisms through which the wealthy and well-connected
commit fraud and tax evasion, and skirt international sanctions, or simply take advantage
of a weak regulatory environment. But the leak of information contained within the
Panama Papers also began the process of revealing the as yet not fully known ‘social
life’ of corruption in Latin America. Worldwide, corruption often generates both personal
financial wealth and political power; in the Latin American region the particular charac-
teristics of corruption, and the number of patterns which it takes, are still being made
known and are difficult to fully comprehend. For example, in some of the cases discussed
in this special issue, individuals who are part of corruption schemes are deeply connected –
either as politicians or experts – to key parts of the state. These cases clearly reveal that a
broad range of individuals and institutions with radically different ideologies are using
opaque financial mechanisms to secure and hide money, and to protect that money
from taxes and other regulatory mechanisms. As made up of practices that almost
always fall within the category of ‘white-collar crime’, their schemes are oftentimes
complex, both in financial and legal terms.
But corruption does not always involve large-scale financial schemes. Nor does it hew
to a particular political ideology. Perhaps the most puzzling aspect of corruption is its
flexible character, which makes it difficult to predict how and when the public might
become aware of its practice, and motivated to address it. However, as we will see in
the diverse cases discussed here, the ability for the public’s perspective to be perverted
and manipulated with regard to corruption is somewhat high. The ever-increasing
forms of local and global mediatisation, together with the classed and raced ways
through which corruption interacts with traditional notions of criminality, have created
patterns to the manner in which corruption is understood in the public sphere. Powerful
middle-class and elite publics are seemingly primed to see white-collar criminals as both
‘white’ and ‘innocent’, while seeing lower-class and racially non-white subjects as con-
nected to (hard-core) criminality and corruption. Indeed, the classed and raced aspects
of corruption in Latin America shine through the papers in this special issue, explaining
a social life that has, as of yet, not been fully explored or reported.
The Latin American participants who appear prominently in the Panama Papers may
share similar race and class backgrounds, but their ideological sympathies traverse the pol-
itical spectrum, ranging from the far right to the far left – and everything in between. For
example, in Argentina, both Macri (the current Argentine president, who is ideologically
positioned to the right of centre) and the Kirchners (past Argentine presidents, who are
ideologically positioned to the left of centre) are well represented in the papers. Next
door, Brazilian billionaires appear prominently in the Panama Papers leaks, as do political
figures from a number of parties that are differently positioned on the ideological spec-
trum: the centre-right Party of the Brazilian Democratic Movement (PMDB), the
centre-left Brazilian Social Democratic Party (PSDB) and the leftist Democratic Labour
Party (PDT). Executives from the state-run oil company, Petrobras, also appear in the
leaked materials, as does the politician Eduardo Cunha: the former leader of the lower
house of the Brazilian Congress who drove the impeachment proceedings against Presi-
dent Dilma Rousseff of the left-of-centre Workers Party (PT). Entities with a range of pol-
itical sympathies and financial interests belonging to Costa Rica, Ecuador, Uruguay, Chile,
CULTURE, THEORY AND CRITIQUE 301
Venezuela, Colombia, Peru and Mexico all appear prominently in the Panama Papers as
well.
At the time the papers were released (2016), President Barack Obama addressed the
complex financial systems and the inadequate regulatory environment that enabled the
wealthy to gain further advantage by making complex financial moves. ‘It’s not that
they’re breaking the laws’, he said, ‘it’s that the laws are so poorly designed that they
allow people, if they’ve got enough lawyers and enough accountants, to wiggle out of
responsibilities that ordinary citizens are having to abide by’ (Boland-Rudder et al.
2016). The Panama Papers should be considered one of many ongoing large-scale
global corruption scandals that illuminate patterned and complex financial schemes
that create additional advantages for the extremely wealthy. These advantages are
enabled not only by political and financial systems that thrive on inequality, but also by
the cultural capital inherent within such systems.
In some places outside the Latin American region, where stark economic inequality has
not been normalised, information leaked from the Panama Papers seems to have pene-
trated public consciousness; in some cases it has led to political action. One example
that stands out is the case of the Prime Minister Sigmundur Davíõ Gunnlaugsson of
Iceland, who resigned when it became known that he had taken advantage of some of
the legal loopholes offered by offshore tax shelters. A good deal of the public outrage
that inspired the successful call for Gunnlaugsson’s resignation was motivated by what
was understood to be his exceedingly hypocritical stance toward financial corruption;
he had campaigned against the very same quasi-legal financial activities he had used to
enrich himself (Henley 2016).
Public awareness of corruption in the US seems to be taking a much different trajectory,
leading toward increasing impunity rather than accountability – but there are signs this
could swiftly change if political winds shift direction. Only time will tell if any of the cor-
ruption cases that are currently moving forward in US courts will ultimately produce
lasting effects in the political system. Of the many corruption scandals currently unfolding
in the US as we finalise our work on this special issue, the case of Paul Manafort, the one-
time former campaign manager of President Donald J. Trump, might prove to be the most
significant. Manafort’s first trial came to a close as this issue made its way to press; he was
found guilty of eight counts of corruption, including five counts of tax fraud, two counts of
bank fraud and one count of failure to disclose a foreign bank account (LaFraniere 2018).
In spite of Trump’s efforts to distance himself from his former campaign manager, Man-
afort and his trial may later prove to sit somewhere at the centre of the ‘Russia investi-
gation’. But as of yet, it seems that the legal recognition of President Trump’s former
campaign manager’s participation in corruption is not enough to produce broader politi-
cal effects.
Manafort’s past economic success as a political consultant for a number of questionable
political actors, including pro-Russian politicians in Ukraine, rested, in part, on his politi-
cal ties within the US. We don’t yet know if and whether this equation worked in the other
direction (e.g., whether his political ties with Russian oligarchs were important in his role
as Trump’s campaign manager). We do, however, know that when Manafort volunteered
to work as director for the Trump presidential campaign, he agreed to work without
drawing a salary – despite his cash-flow problems at the time (Foer 2018).
302 D. M. GOLDSTEIN AND K. DRYBREAD
During Manafort’s trial, Rick Gates – a former friend and employee of Manafort who
served as a witness for the prosecution and was once a high ranking member of the Trump
Presidential transition team – provided the court with hours of testimony explaining how
the super wealthy shift money across international borders, evading tax collectors and law
enforcement, and ultimately decreasing public tax bases and increasing the wealth of oli-
garchs and their enablers (Cassidy 2018). As of this writing, we do not yet know of all the
connections between Manafort’s corrupt practices, his ties with Russian oligarchs and
politicians, and his involvement with the Trump White House. But the trial did clarify
how financial schemes involving off shore tax havens work, and how they can both
hide and generate large sums of money, as well as political power.
Arguably, the Manafort trial and the Panama Papers leak have together drawn our
attention to the fact that we still do not fully comprehend the ways in which the money
generated by tax evasion and money laundering is used politically. But if contemporary
scholars ‘of the North’ have avoided writing about corruption in ‘the South’ because
they did not want to be perceived as engaging in an orientalising practice (Nuijten and
Anders 2007, Goldstein 2012), there is now plenty of material to keep these scholars occu-
pied just about anywhere on the globe, with the US included prominently. Reading these
essays about corruption in Latin America certainly inspires the will to think
comparatively.
In this special issue focused on the social life of corruption in Latin America, our aim is
to examine the context, social meanings, discourses and workings of corruption in the
social order. The questions we raise for the Latin American context can be asked in
relation to corruption anywhere:
We address these questions in the essays that follow. While remaining attentive to the
enduring and pronounced forms of corruption in the region, we thus seek to explore how
recent political, financial and media events signal the emergence of novel forms of white-
collar crime and corruption, forms which ultimately require us to rethink the operation of
state (or state-like) power in Latin America (Aretxaga 2003). Together, the essays in this
volume suggest that we think of corruption as something both ‘old’ and ‘new’, that is,
CULTURE, THEORY AND CRITIQUE 303
something that is very well known but that also takes on new shapes and purposes in this
contemporary moment.
Take the case of Kirchner: In December of 2016, she was indicted on charges of corrup-
tion in a case involving funds earmarked for public works. The scandal surrounding
Kirchner deepened in August 2018, when a judge authorised police raids of her residences
in search of information regarding her potential involvement in a wide-ranging kickback
scheme during her presidency. The Argentine Senate enabled the searches by partially
lifting the parliamentary immunity Kirchner enjoys as a senator; they did so after the pre-
siding judge in the case made them aware of a series of detailed notebooks kept by a driver
of a senior minister in the Kirchner government (2007–2015). The notebooks revealed a
treasure trove of details regarding the cash payments from construction bosses to govern-
ment officials that the driver claims to have helped facilitate. Kirchner claims she is being
targeted by Argentina’s current president, her political rival and right-wing businessman
and politician, Mauricio Macri. While Kirchner may or may not eventually be found
guilty, the political timing of the raids – a recent devaluation has pushed Argentina
into a recession and stagflation has diminished Macri’s approval ratings – suggests that
they are possibly motivated by causes other than transparency.
President Dilma Rousseff’s 2016 impeachment trial in Brazil arguably provides an even
more obvious example of a politically motivated crusade against alleged corruption. Many
have agreed that Dilma’s removal from office was a parliamentary coup. Some who under-
stand her removal as a coup also recognise that the entire Brazilian political system is
mired in corruption. The dual picture emerging of Rousseff’s downfall is that a highly
managed and mediatised anti-corruption campaign removed her from office, and that
the politicians currently in control of the government helped depose her in order to
protect themselves from facing their own corruption charges.
In a very broad sense, and related to the maturation of judicial systems throughout the
Latin American region, it is a well-known fact that white-collar crime is endemic in the
region; yet until recently it has been both untreated in the criminal justice systems and
understudied on the whole. Within the judicial system, it had seemingly been impossible
to adequately address white-collar crime and corruption prior to the present. The same
might be said of the academic study of these phenomena. In contrast, academic literatures
focused on urban violence, drug trafficking and prisons are abundant. For example, the
current Brazilian criminal justice and prison system are filled with black, brown and
poor bodies (see, for example, Drybread 2016) prosecuted and imprisoned for minor
infractions, including drug possession and petty theft, at the same time that wealthy
white elites have arguably been able to plunder the country with impunity. In this
context, recent investigations of high-profile politicians and business leaders, even with
all of their regressive political implications and flaws, do indeed provide a collective
moment to reflect on white-collar instances of ‘breaking the law’.
To some, the sudden emergence of so many high-profile corruption scandals in Latin
America not only indicates the intractability of the dishonesty, thievery and graft that
remain integral to the continent’s processes and politics, but also gives credence to the
idea that in order to get things done, corruption is necessary; ‘greasing the wheels’ of
an unforgiving bureaucracy is part of a politician’s (and bureaucrat’s) job. To others,
this proliferation of corruption scandals heralds significant shifts in the ways that
white-collar crime is perceived, exposed, tolerated and punished.
Prior academic writings about corruption, crime and violence have recognised cor-
ruption’s white-collar phenotype, including its confluence among middle- and upper-
CULTURE, THEORY AND CRITIQUE 305
class perpetrators (Nuijten and Anders 2007; Goldstein 2012). However, more research
must be done in this regard. White-collar crime has too long been understood as static
and unchanging. While its history might be summed up in the popular maxim stated
many times in newspaper reports and in everyday speech in Brazil – that white-
collar crime usually ‘ends in pizza’, with nothing being accomplished aside from impu-
nity (see, Goldstein 2018) – this is not necessarily a Brazilian problem nor is it exclu-
sively a Brazilian outcome. White-collar crime everywhere too often ends in reduced
sentencing and plea deals for perpetrators, with short and specialised prison sentences
– even when the amounts of money involved are beyond comprehension. In the US
context, our own motto for corporate corruption has an equivalent in the ‘too big to
fail’, mantra of 2008. Collectively, we tend to worry more about the potential short-
term consequences of prosecuting corporate and political crimes than about the long-
term effects of allowing powerful actors to enrich themselves at the expense of us all.
This special issue shows that, of course, both emergent and embedded forms of corrup-
tion produce real effects on local communities and on larger political systems. In Latin
America, effects have included local variations of drug, military and gang violence that,
in turn, are entangled with state power. This special issue sheds light on these critical inter-
sections, and asks: Do emergent forms of corruption highlight the fragility of democratic
citizenship in the young, and tenuously stable, democracies of Latin America (Drybread
2009)? Has neoliberalism – or the threat of neoliberal collapse – produced new intersec-
tions of race, class and corruption (Goldstein 2012)?
proposes that the broad coalition of right-wing actors – neoliberals, authoritarians, reli-
gious conservatives and race-class elitists – who determined Rousseff’s culpability in con-
gressional deliberations on her impeachment did not look to what she did, but instead to
what she was in determining her culpability. In so doing, they also created a public
equivalence among Rousseff, Lula and the PT, rendering the latter as a party constructed
of (already) corrupted individuals. Ansell argues that Dilma’s impeachment can be par-
tially explained through what he terms the ‘evidentiary logic of cross-domain homology’:
linking disparate characterological traits – alleged Marxism, lesbian proclivities and
‘criminal’ behaviour during the dictatorship – through contaminated representations.
In these representations, elements of Dilma’s history that were well known by the
public were combined to create an aberrant and perverted, morally corrupt figure.
Over time, the accumulation of such representations was successfully deployed by
Dilma’s detractors to create a figure of ontological corruption who, in this logic,
‘deserved’ impeachment. Ansell writes that this strategy of conflating perceived moral
corruption with the practice of actual political and financial corruption is not necessarily
one that will work only for the ideological ‘right’. However, when we compare the racial,
religious and gender logics that emerged in the Dilma case to the ways in which corrup-
tion and crime are already configured as contaminated representations in Brazilian
history, we are left to wonder whether this ‘anti-corruption’ logic could ever be success-
fully deployed from a different perspective.
Kristen Drybread’s paper titled, ‘When corruption is not a crime: “innocent” white poli-
ticians and the racialisation of criminality in Brazil’ helps to explain the very conundrum
raised by Ansell. In her essay, she reminds readers of the historical antecedents of the cor-
ruption equation, especially how corruption is thoroughly already racialised – and therefore
classed – in Brazil, and how these characteristics are particularly inflected in the politics of
corrupt northeastern politicians, who are the descendants of a white landed elite. Drybread’s
essay shows how the patterns of white-collar crime in Brazil follow the powerful rules that
classic sociology laid out about the ‘power elite’ (Mills 2000 [1956]) in the early twentieth
century. Indeed, even the earliest literatures on white-collar crime noted the inextricable
link between such crimes and their individual perpetrators, setting out the definition of
white-collar criminality as ‘committed by a person of respectability and high social status
in the course of his occupation’ (Sutherland 1949). Drybread’s essay goes far in explaining
the social relations of race embedded in today’s construction of corruption, which despite its
seemingly new forms, remains built upon a racialised historical bedrock. This bedrock per-
sists through time, leaving the vast seigniorial estates of the landed elites in Brazil intact, and
providing a foundation for the well-known levels of inequality that characterise labour
relations in contemporary northeast Brazil today. Drybread re-introduces us to a Brazil
that many in the central cities (e.g., São Paulo and Rio de Janeiro) might claim is gone,
but that is still quite visible in the impoverished northeast. There, mixed-race and darker
skinned Brazilians are understood as lower-class citizens and their association with crimi-
nality is naturalised over time. Conversely, the white elite and politically powerful of Alagoas
that Drybread describes do not see white-collar corruption as a politically or morally rel-
evant issue. Instead, for these elite white northeastern politicians, the practice of ‘vote-
buying’ – where impoverished citizens trade their votes for material gain – is reconfigured
for public consumption as the central problem of corruption. Drybread describes how
these elites transform vote buying from a tactic of subsistence into a problem of racial
CULTURE, THEORY AND CRITIQUE 307
and moral corruption. Doing so enables them to detach themselves from white-collar
crime and corruption, and to thereby avoid taking responsibility for its practice. Thus,
these white-collar actors position themselves as the entrepreneurs, business leaders
and political saviours of the region, at the same time that they reposition materially
impoverished citizens who must sell their vote for sustenance as criminals. Drybread
argues that these characterisations function well because they are built on longstanding
historical representations of race and class that have never been erased in the context of
Brazil’s ‘cordial’ forms of racism. The end result is that the very same elite political
figures who have committed fraud and various other forms of white-collar crime and
corruption, such as ex-President Fernando Collor de Mello, exempt themselves from
being seen as morally corrupt. Meanwhile, ex-President Luis Ignácio Lula da Silva
(Lula), who was born into an impoverished family in the northeast (and is often con-
sidered to be phenotypically white), is rendered characterologically ‘black’ in this
equation. We could say that Lula, the PT and Dilma are potentially always ‘ontologically’
corrupt – to use Ansell’s phrasing – because of this constellation.
Donna Goldstein’s essay titled, ‘Already innocent: radioactive bribes, white collar cor-
ruption and nuclear expertise in Brazil’ takes on the claim of an ‘already’ conditioned (and
racialised and classed) perception of innocence by examining the ‘whiteness’ that is con-
centrated and ‘taken-for-granted’ in a Brazilian nuclear expert’s defence against corrup-
tion allegations. The case focuses on a central figure in Brazil’s nuclear history, Othon
Luiz Pinheiro da Silva (Admiral Othon), a man known as the ‘Prometheus of Brazil’,
whose expertise in all nuclear matters extends back to the 1970s. Admiral Othon was
recently found guilty of engaging in a number of corrupt practices related to the construc-
tion of Brazil’s third nuclear plant, Angra 3. These corrupt practices became known
through the Car Wash investigations that extended from the oil industry into the con-
struction and nuclear industries. Although Admiral Othon was initially given a harsh sen-
tence of 43 years for his corruption related crimes, he was recently released from prison; in
that moment, during a widely referenced interview, he echoed points made by his lawyers
during his legal defence: that ‘anti-corruption zeal’ was working in coordination with
foreign interests and against nationalist desires to unfairly punish him, a national treasure.
In framing his expertise and the importance of his work to the nation in terms of national
security, energy and technical prowess, Admiral Othon and his lawyers constructed his
moral ontology as ‘already innocent’ and as transcending partisan politics. Indeed, prior
to his release, a number of politicians from across the political spectrum came to
support Othon publicly. His corruption case potentially provides evidence that anti-cor-
ruption forces do not only achieve success in litigating against avowedly left-wing charac-
ters, as some have argued. While it is not entirely clear how Othon himself should be
ideologically positioned – his work was supported by left-, centre- and right-wing govern-
ments – it is clear that his education, status, expertise, technical skills and national security
credentials created a kind of ‘super-whiteness’; that is, a set of characteristics that
expressed white-collar expertise as a preconfigured category of innocence.
Winifred Tate’s paper titled ‘Paramilitary politics and corruption talk in Colombia’ reveals
the ways corruption talk in the Monteria region of Colombia’s Atlantic Coast helps to
explain how paramilitary leaders obtained comparatively high moral standing during
the nation’s Dirty War. Tate explains that in order to comprehend this interpretation –
given the violent human rights violations perpetrated by these same paramilitary
groups – one has to look at the regional characteristics of inequality and corruption
that preceded the rise of the paramilitaries. In Colombia’s historically constituted hierar-
chies of class and race, political life in the region had long been dominated by rural family
clans who ‘took all the money in Córdoba’ and used their regional power to create fortunes
not only through legal forms, but also through crime and corruption (Tate 2018). Since the
1970s, this has included drug trafficking. Paramilitary leaders who emerged in the 1980s
staked the claim that they were ‘anti-corruption’, even though they too engaged in siphon-
ing off public resources for private gain. In some instances, the corruption of these para-
military leaders was publicly acknowledged, but they were seen as ‘doing corruption right’
because they carried out the projects they had promised while stealing ‘less’ than tra-
ditional elites regularly stole from the public. Paramilitary leaders also used rhetorical
strategies of the leftist opposition, including adopting leftist testimonios (in the form of
paramilitary life histories) to highlight their position as ‘innocents’ at the beginning of
their political trajectories, thereby casting themselves not only as saviours of regional
security against drug traffickers and leftist forces, but also as representatives of weak
and beleaguered regional elites. While much of this paramilitary perspective is a
fantasy, it is nonetheless replicated and made to seem real in powerful mediated forms,
including popular Colombian telenovelas.
Concluding thoughts
From the cases presented in this special issue, it is clear that ‘corruption’ is at once a con-
ceptual category, a set of historically embedded practices that creates wealth, and also a
political strategy (‘anti-corruption’). Corruption thus takes shape in a ‘creative’ manner
at local, national and global scales here explored in this special issue of Culture, Theory
and Critique in the context of Latin America. The essays to follow reveal some of the
ways that emergent forms of corruption in Latin America might require new ways of
understanding relationships between authority, morality, transparency and (il)legality in
putatively democratic regimes. While one could argue that a general consensus holds
that corruption runs counter to the principles of democracy, within Latin America’s
young democratic states, charges of corruption have, of late, been strategically levelled
to promote – and likewise to thwart – ideological and social projects that further equality.
This phenomenon bolsters a primary contention of this special issue as a whole: that cor-
ruption traverses social and political hierarchies, even as it generally works to keep them in
place. Given that even the most marginalised can, in certain situations, benefit from prac-
tices that can be construed as corruption, it is important to note that such benefits tend to
offer only short-term solutions to entrenched social and political problems. It is the pol-
itical economic elite who, in using corruption to preserve the various forms of inequality
that set them apart from the masses, truly benefit from practices of corruption, or from
accusations thereof.
310 D. M. GOLDSTEIN AND K. DRYBREAD
The papers presented here suggest that we must acknowledge how accusations of cor-
ruption – whether founded or not – can reveal tensions between the democratic promise
of equality and the realities of pervasive social and economic hierarchy that still exist in
Latin America, and throughout other parts of the world. By ethnographically examining
particular practices of corruption and anti-corruption that implicate a range of social
actors, the essays suggest that we must no longer assume corruption can only benefit
the wealthy and well-connected, while anti-corruption necessarily furthers the cause of
those who have traditionally been excluded from political and financial power. Both cor-
ruption and anti-corruption are multivalent discourses and practices that can be mobilised
for the benefit of some, or too, for the good of none.
Acknowledgements
The authors want to thank the contributors to the special issue and, in particular, Christopher
Charles Barnes, editorial assistant extraordinaire, for his patience and editorial skills.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes on contributors
Donna M. Goldstein is a professor of cultural anthropology at the University of Colorado Boulder
and author of Laughter Out of Place: Race, Class, Violence, and Sexuality in a Rio Shantytown (Uni-
versity of California Press, 2003 [2013]), winner of the 2005 Margaret Mead award. She writes
within the fields of medical anthropology, anthropology of the environment, and Science and Tech-
nology Studies (STS) and is currently working on a project that examines the history of Cold War
science and nuclear energy in Brazil.
K. Drybread is a cultural anthropologist based at the University of Colorado Bolder. She has written
on prison rapes and murders, political corruption, and the meanings of mundane mass graves. Her
current project examines relationships between citizenship and violence in Brazil.
ORCID
Donna M. Goldstein http://orcid.org/0000-0002-5771-3752
K. Drybread http://orcid.org/0000-0001-6573-4898
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