It is no secret that Thailand is rife with human trafficking. It is the world’s number one destination for sex travel. (Yes, that means people travel to Thailand solely for the purpose of having sex with men, women and children who are trafficked.) Thailand’s fishing industry is also dependent on human trafficking, often using young boys at sea for long periods of time, sometimes working them to death.
When it comes to spending on national defense the political debate is often presented as a simplistic, binary contest between those who want to spend more and more (often conservatives, who want a strong military) and those who want to spend less and less (often liberals, who want to use the money for social welfare purposes). While those discussions are important, they are also incomplete. Conservatives, in particular, should be more cognizant of the way cronyism can undercut military readiness.
It is no secret that rule of law in places like Slovakia is weak. Corruption, pay-offs, bribes and twisted use of power often pass for “rule of law.” However, this problem has infected health care as well, which means those who are able to bribe the doctor or health care worker is the one who will get the care.
The Economist describes Communist-era corruption as a holdover infesting much of central and eastern Europe, and not just in health care. However, it’s one thing to bribe an official to get a building permit; it’s quite another to have to do it for live-saving surgery.
In Latvia Valdis Zatlers, an orthopaedic surgeon who served as the country’s president from 2007 to 2011, accepted what he called “gratitude payments” from patients without declaring them to the tax authorities. He was fined just 250 lats ($466). A European Commission survey in 2013 found 28% of respondents in Romania and 21% in Lithuania had made informal payments to doctors, compared to an EU average of 5%. (more…)
Political corruption is the use of legislated powers by government officials for illegitimate private gain. While it isn’t as endemic in the U.S. as it is in some countries (Somalia, North Korea, and Afghanistan being the most corrupt), the problem still exists. According to the Justice Department, in the last two decades more than 20,000 public officials and private individuals were convicted for crimes related to corruption and more than 5,000 are awaiting trial, the overwhelming majority of cases having originated in state and local governments.
But measuring corruption based on convictions can be tricky for a variety of reasons, ranging from inadequate data to partisan bias. One alternative measure is to use perceptions, especially of state and local governments. Oguzhan Dincer and Michael Johnston surveyed the news reporters covering state politics in addition to the investigative reporters covering issues related to corruption during the first half of 2014 to gauge their perception of state corruption:
If corruption were a global industry, it would be the third largest, accounting for 5 percent of the global economy.
In many parts of the world, bribery and corruption are simply considered the price of doing business. However, corruption (both in business and in politics) undermines people’s trust in these institutions. Corruption also forces many people and businesses out of the marketplace and out of the political arena: those with more money are always at an advantage. Transparency International is a German-based organization that works to end corruption. Their video explains what corruption is and how it can be stopped.
According to the U.S. Department of Labor, unemployment across the country is at about 6.1 percent (here in Michigan, it’s at 7.4 percent, which puts us in the bottom 10 states.) That means a lot of folks are still struggling to find a job, or a job where they are not underemployed.
Peter Morici, an economist at the University of Maryland give 5 reasons for this. Have all the “good” jobs moved overseas? Do we need to raise the minimum wage? Are we Americans lagging behind in math and science? Here are Morici’s thoughts: (more…)
[Part 1 is here.]
In his case against capitalism, Wendell Berry argues that the average person not only is anxious because he depends upon so many other people for his wellbeing (truckers, utility companies, etc.) but that he ought to be anxious. There’s a grain of truth here. We shouldn’t become helpless sheep without a clue what to do were the power to go down for a couple of days in January. But inter-dependency, far from a sign of cultural sickness, is the mark of a healthy society, one where enough trust exists to allow for broadening circles of productivity and exchange, for markets that extend beyond clan and tribe. (more…)
[Part 1 is here.]
Even a cursory look at the annual list of the freest and least free economies in the world suggests a strong correlation between economic freedom and the prosperity of its citizens, including its poorest citizens. But there’s another correlation that tends to capture the attention of those making a cultural critique of the free economy. They note that America is economically free, and that it’s experiencing cultural decay, so they conclude the first causes the second. The conclusion isn’t absurd, but it also doesn’t follow necessarily. Sometimes correlation is due to causation, and sometimes it isn’t. To avoid confusion and false conclusions, we need to distinguish the idea of economic freedom from some things it isn’t.
A lot of people view economic freedom as synonymous with big corporations cutting sweetheart deals with politicians to suppress competitors and consumer choice. This stuff goes on all the time, of course, but it isn’t economic freedom. It’s the leviathan state and big business colluding to manipulate the market, to stack the deck in favor of political insiders. Every market economy on the planet has some of this sort of thing, since economies are operated by fallen human beings. The question is, where does cronyism tend to be the worst? (more…)
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:
Many who reject capitalism in favor of some “third way” do so because they often mistake it for government-corporate cronyism, says Jonathan Witt in this week’s Acton Commentary. But in countries that have begun extending true economic freedom to the masses, capitalist activity has already lifted hundreds of millions of people out of extreme poverty.
Happily, a new piece in The Economist magazine offers some helpful medicine for the confusion, insisting on the distinction between cronyism and capitalism while also pointing to some hopeful signs that a rising middle class around the globe is gaining the clout to fight the power structures that still wall millions out of the wealth creation game. My reservation about the article is that it misreads America’s Progressive era, and in the process, leaves cronyism’s favorite trick unexposed.
According to the piece, crony capitalism in America “reached its apogee in the late 19th century, and a long and partially successful struggle against robber barons ensued. Antitrust rules broke monopolies such as John D. Rockefeller’s Standard Oil. The flow of bribes to senators shrank.” Later, it tells readers that while developing countries are making progress against cronyism, “governments need to be more assiduous in regulating monopolies.”