Understanding the Institutionalization of Corruption and the Role of Accounting in Rentier States: A Case Study of Kurdistan Region of Iraq (KRI)

This thesis investigates the institutionalized corrupt practices in the context of the Kurdistan Region of Iraq (KRI), an autonomous region in northern Iraq. There has been an increase in the number of studies seeking to provide an understanding of corruption in a variety of domains across countries. However, the literature on the institutionalization of corrupt practices in rentier developing countries is scarce. This study aims to address this research gap. The study investigates how corruption has been institutionalized in KRI by locating it within a wider socio-political, economic and historical context. A particular focus is placed on unfolding how the social structures and agency are implicated in the perpetuation of political corruption and making it a day-to-day practice. This study draws on the theories of critical realism and rentier state in order to understand the dialectical interrelationship between the social structures and the actors embedded in society. The application of these two theories has helped locate the development of corrupt practices by shedding light on the role played by the agents. Semi-structured interviews and document analysis have been used as the two main methods of primary data collection. The findings of the study illustrate how the socio-political and economic factors and power relations have affected the socio-political structures and agency in KRI and contributed to the reproduction of corruption. Consequently, corruption has become an institution and embedded in the socio-political sphere of KRI. The study shows that accounting, as a social and institutional practice, has been used to build up power relationships and exercise domination mainly by politicians. Accounting has played an important role in legitimising illegal practices. The findings also suggest that while sufficient institutions of accountability may exist within KRI, the political influence has impaired the effective functioning of these institutions to curb corrupt practices. This study argues that any attempt to fight and deter corruption in KRI or any other similar rentier developing countries depends entirely on the political commitments and will. Therefore, anti-corruption efforts must be primarily accompanied by a critical reform in the political, governance and economic system.