Posts tagged with: bribery

briberyThere’s an old saying that corruption is authority plus monopoly minus transparency. That combination makes state-level governments especially prone to the temptations of corruption.

A new study in Public Administration Review, “The Impact of Public Officials’ Corruption on the Size and Allocation of U.S. State Spending,” looks at the impact of government corruption on states’ expenditures. Defining corruption as the “misuse of public office for private gain,” the authors of the paper note that public and private corruption can have a range of negative effects, including lower-quality work, reduced economic productivity, and increased poverty.

According to Leighton Walter Kille, the researchers explored two possible theories: First, higher levels of corruption should cause states’ spending levels to be higher than they would be otherwise. Second, corruption would distort states’ spending priorities in ways that favor bribes from private firms and others. Some of the findings include:
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St. Ignatius of Antioch was martyred at the jaws of wild beasts in the Roman colosseum sometime around 110 AD.

In her historical study of wealth and poverty in the early Church, Loving the Poor, Saving the Rich, Helen Rhee offers the following interesting historical tidbit with regards to how early Christians were able to minister to their imprisoned brothers and sisters who awaited martyrdom:

Bribing the prison guards, which must have cost a certain amount, features frequently enough in the Christian texts. The impressive visiting privileges and hospitality Ignatius [d. 110] enjoyed at Philadelphia and Smyrna with the local Christians and the delegations from three other churches were likely gained by bribery as well…. It apparently did not raise any moral qualms among Christians; rather, it constituted a necessary part of supporting the prisoners since it enabled the churches to maintain contact with them (and thus to tend to their needs) and allowed the guards to be more favorably disposed to the Christians. Thus the Didascalia (19) … ordered the community members to spare no efforts to procure both nourishment for the condemned Christian prisoner and bribes for the guards so that everything possible might be done for his or her relief.

For those who are curious, the text from the Didascalia, a third century Christian community manual, reads as follows:

You shall not turn away your eyes from a Christian who for the name of God and for His faith and love is condemned to the games, or to the beasts, or to the mines; but of your labour and of the sweat of your face do you send to him for nourishment, and for a payment to the soldiers that guard him, that he may have relief and that care may be taken of him, so that your blessed brother be not utterly afflicted. [italics mine]

While Rhee notes that bribery “apparently did not raise any moral qualms among Christians” in the early Church, no doubt readers today may not so easily approve of the above direction to make provision for bribing guards. How might we better understand this anomaly? What measure of prudence guided this practice? (more…)

Transparency International has released its 2013 findings regarding global corruption and bribery. The implications of corruption and bribery are manifold: they decrease confidence in governments, make it difficult for the poor and corruptiondisconnected to get out of poverty, and break down trust throughout society. In fact, Transparency International found that two institutions that should be the most trusted (police and the judiciary) are the ones most riddled with corruption, world-wide.

Here is one example:

Fifty-year old Carmela [name has been changed] was sleeping at home when she was woken by banging and shouting from the  apartment above, where her son lives. Rushing upstairs, she says she found the 27-year-old mechanic being beaten by police officers. Ignoring her cries, the officers dragged him from the apartment and took him to their local headquarters, where they demanded payment for his release. Carmela’s problem is not new in her community, a makeshift settlement where local people claim to suffer constant harassment from certain police officers who demand bribes in return for leaving them in peace. Fearing retaliation, people find a way to pay the officers, who reportedly ask for as much as several thousand US dollars. But for Carmela, a housekeeper with four children, one suffering from cancer, this was impossible. Acting on Carmela’s behalf, Transparency International Venezuela contacted senior government and police officials, calling on them to take action. As a result, when she went to the local police headquarters to pay the bribe, the state authorities were watching. As soon as the money changed hands, they moved in and arrested the officers involved. Her son was released without payment. The police officers were detained and now await trial, while a full investigation is underway.

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Blog author: ehilton
posted by on Monday, December 10, 2012

Perhaps one of the biggest obstacles to wealth creation in the developing world is corruption. Bribery, rigging of the political process, theft, lack of accountability: all of these lead to instability, bureaucracy, and a lack of incentive to invest. The United Nations has declared today International Anti-Corruption Day in an effort to bring light to this topic and work to prevent it.

George Ayittey, Ghanaian economist, explains how massive a problem corruption is for Africa:

Imagine, Africa has a begging bowl and that into this begging bowl comes… foreign aid. But this bowl has holes in it, so it leaks. There’s a massive hole here through which corruption alone cost Africa $148 billion dollars. That’s a massive leak. What should be done first – plugging the leaks or putting more aid money in? Now this is something which even an elementary school student should be able to answer. I mean, you pouring more and more and more into the bowl and then it leaks. Defining insanity: as doing the same thing over and over and over and again and expecting different results—makes no sense.

Osvaldo Schenone and Samuel Gregg share their thoughts on corruption and its scourge in the Acton Institute monograph A Theory of Corruption. The monograph explores the political and international ramifications of corruption, but also its moral implications. (more…)

Blog author: ehilton
posted by on Tuesday, September 18, 2012

“Petty” bribery is an accepted way of life in much of the world. A person simply understands that he or she will need to “grease the palms” of certain officials in order to get a business license, a work contract or help with a legal matter. In Rev. Robert Sirico’s book, ‘Defending the Free Market: the Moral Case for a Free Economy‘, he recounts how economist Hernando de Soto decided to see how long it would take the average person to set up a small business in Peru.

He [de Soto] and his colleagues decided to test the question by establishing a two-sewing machine shirt-making business in a Lima shanty town, and he took himself out of the equation by sending out four students under the supervision of a seasoned lawyer to do the work of trying to comply with all of the legal requirements. “I’ve discovered that to become legal took more than three hundred days, working six hours a day,” De Soto writes. “The cost: thirty-two times the monthly minimum wage.”

This type of corruption is a leading cause of poverty. While many times the amounts of money may seem small – therefore “petty” – the cost is enormous when viewed more globally. Eduardo Bohórquez and Deniz Devrim, of Transparency International, Mexico, have studied “petty” bribery and concluded that this type of corruption not only hampers economic growth, but is truly devastating to the economies of developing nations, calling bribery a “regressive tax on the poor.”

The Index on Corruption and Good Governance suggests that while Mexican households with an average income spent 14% on bribes in 2010, households with the minimum income spent 33% of their monthly income on corruption, a percentage that by no means can be considered to be “petty”. The survey on experienced corruption in the Western Balkans confirms the finding that the average number of bribes paid is higher among lower income groups than wealthier citizens.

Further, Bohórquez and Devrim conclude that bribery doesn’t simply cost the poor money; it weakens their trust in public officials and institutions  and undermines struggling democratic underpinnings of government. In fact, they state, “Calling corruption in public service delivery “petty” minimizes its devastating effects and the high damage it has on the development of societies. Therefore, the term “petty bribery” needs to be banned from the anti-corruption vocabulary.”

Read Bohórquez and Devrim’s ‘Cracking the Myth of Petty Bribery‘.

This article is cross-posted at PovertyCure.org.