Though the perception of corruption itself is a negative outcome -
it is so only when corruption does not constitute an acceptable and
normative part of the playing field. When corruption becomes
institutionalised - it also becomes predictable and is easily and
seamlessly incorporated into decision making processes of all
economic players and moral agents. They develop "by-passes" and
"techniques" which allow them to restore an efficient market
equilibrium. In a way, all-pervasive corruption is transparent and,
thus, a form of taxation.
This is the most common form of corruption exercised by low and mid-
ranking civil servants, party hacks and municipal politicians
throughout the CEE.
More than avarice, the motivating force here is sheer survival. The
acts of corruption are repetitive, structured and in strict
accordance with an un-written tariff and code of conduct.
(b) Acceleration Fees
Corrupt practices whose sole outcome is to ACCELERATE decision
making, the provision of goods and services or the divulging of
information. None of the outcomes or the utility functions are
altered. Only the speed of the economic dynamics is altered. This
kind of corruption is actually economically BENEFICIAL. It is a
limited transfer of wealth (or tax) which increases efficiency. This
is not to say that bureaucracies and venal officialdoms, over-
regulation and intrusive political involvement in the workings of
the marketplace are good (efficient) things.
They are not. But if the choice is between a slow, obstructive and
passive-aggressive civil service and a more forthcoming and
accommodating one (the result of bribery) - the latter is
preferable.
Acceleration fees are collected mostly by mid-ranking bureaucrats
and middle rung decision makers in both the political echelons and
the civil service.
(c) Decision Altering Fees
This is where the line is crossed from the point of view of
aggregate utility. When bribes and promises of bribes actually alter
outcomes in the real world - a less than optimal allocation of
resources and distribution of means of production is obtained. The
result is a fall in the general level of production. The many is
hurt by the few. The economy is skewed and economic outcomes are
distorted. This kind of corruption should be uprooted on utilitarian
grounds as well as on moral ones.
(d) Subversive Outcomes
Some corrupt collusions lead to the subversion of the flow of
information within a society or an economic unit. Wrong information
often leads to disastrous outcomes. Consider a medical doctor or an
civil engineer who bribed their way into obtaining a professional
diploma.
Human lives are at stake. The wrong information, in this case is the
professional validity of the diplomas granted and the scholarship
(knowledge) that such certificates stand for. But the outcomes are
lost lives. This kind of corruption, of course, is by far the most
damaging.
Unfortunately, it is widespread in CEE. It is proof of the collapse
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