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The purpose of this paper is to suggest how enabling policy should be focused in a knowledge economy by developing the concept of a knowledge economy social network (KESN).

The paper employs an interdisciplinary approach in developing the KESN by drawing on concepts and methodology from economics, political science and social network theory.

The KESN's social capital is defined. As such, maintaining accountability, increasing cohesion and connections among knowledge actors are suggested as relevant guidelines for policy in the KESN.

The knowledge economy should ideally be seen as having unique needs compared to the traditional economy in devising policy.

The paper suggests using the KESN as a basis for devising policy for a knowledge economy.

The paper uses an interdisciplinary approach to studying the knowledge economy and introduces the KESN.

Corruption is a serious problem for economies in transition. It causes retardation in the development of institutions conducive to economic growth. In this sense, it introduces inertia in transition dynamics. Generally, corruption is a deep‐rooted social and economic problem in developing economies everywhere in the world. Presents an analysis of political corruption and argues why some countries are afflicted by it more than others are. For this, several lines of argument are explored, empirical tests and observations are analyzed and finally a model for an economy in transition is presented.