Corrupted networks in Peru: Power and Venality from Viceroy Amat to Montesinos

Abstract

Based on recent progress in the empirical and theoretical study of networks of corruption, this study explores historical evidence on the activities of groups and networks, which throughout different economic and political contexts appropriated public resources for private benefit. This analysis includes the intimate links of these networks with political leaders searching for support to control power by offering venal rewards that distort rules and incentives favorable to institutional and economic development. Diverse adaptations by these networks are found to take place in response to different phases of economic and financial modernization. Significant legacies are also detected from one generation of corrupt agents and networks to the next.