There is also what the World Bank calls "State Capture" defined
thus:
"The actions of individuals, groups, or firms, both in the public
and private sectors, to influence the formation of laws,
regulations, decrees, and other government policies to their own
advantage as a result of the illicit and non-transparent provision
of private benefits to public officials."
We can classify corrupt and venal behaviours according to their
outcomes:
(a) Income Supplement - Corrupt actions whose sole outcome is the
supplementing of the income of the provider without affecting the
"real world" in any manner.
(b) Acceleration or Facilitation Fees - Corrupt practices whose sole
outcome is to accelerate or facilitate decision making, the
provision of goods and services or the divulging of information.
(c) Decision Altering Fees - Bribes and promises of bribes which
alter decisions or affect them, or which affect the formation of
policies, laws, regulations, or decrees beneficial to the bribing
entity or person.
(d) Information Altering Fees - Backhanders and bribes that subvert
the flow of true and complete information within a society or an
economic unit (for instance, by selling professional diplomas,
certificates, or permits).
(e) Reallocation Fees - Benefits paid (mainly to politicians and
political decision makers) in order to affect the allocation of
economic resources and material wealth or the rights thereto.
Concessions, licenses, permits, assets privatized, tenders awarded
are all subject to reallocation fees.
To eradicate corruption, one must tackle both giver and taker.
History shows that all effective programs shared these common
elements:
(a) The persecution of corrupt, high-profile, public figures,
multinationals, and institutions (domestic and foreign). This
demonstrates that no one is above the law and that crime does not
pay.
(b) The conditioning of international aid, credits, and investments
on a monitored reduction in corruption levels. The structural roots
of corruption should be tackled rather than merely its symptoms.
(c) The institution of incentives to avoid corruption, such as a
higher pay, the fostering of civic pride, "good behaviour" bonuses,
alternative income and pension plans, and so on.
(d) In many new countries (in Asia, Africa, and Eastern Europe) the
very concepts of "private" versus "public" property are fuzzy and
impermissible behaviours are not clearly demarcated. Massive
investments in education of the public and of state officials are
required.
(e) Liberalization and deregulation of the economy. Abolition of red
tape, licensing, protectionism, capital controls, monopolies,
discretionary, non-public, procurement. Greater access to
information and a public debate intended to foster a "stakeholder
society".
(f) Strengthening of institutions: the police, the customs, the
courts, the government, its agencies, the tax authorities - under
time limited foreign management and supervision.
Public-domain text, read in full here on John Shaqi.
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