One out of every four people on this planet paid a bribe last year. Bribery has been said to cost the world $1 trillion a year. The United Nations says bribes accounted for one fourth of Afghanistan's annual GDP.
So I was intrigued to hear about an innovative idea to deal with corruption from one of the places most plagued by it - India.
India's Chief Economic Adviser, the economist Kaushik Basu, posted a paper on his personal website in which he made a case for legalizing certain types of bribes.
Corruption is a huge and growing problem in India. More than half of all Indians say they had to pay a bribe last year. Many of those are what Basu calls "harassment bribes" - illegal payments to get basic services, like an extra 100 rupees to get a driver's license or a routine permission.
These are the kinds of bribes Basu wants to change the law on. Under current Indian law, both the bribe giver and the bribe taker are guilty. If they're caught, both are fined an equal amount, say 100 rupees. So the state gets 200 rupees total.
Basu has a radical proposal. Fine the bribe taker, the government official, 200 rupees, he says. Let the bribe giver go scot-free. So the government collects the same amount in fines, but the person who had to pay the bribe is not fined. Instead, he gets his bribe money back.
So how does this reduce corruption? Well, Basu's game theory simulation suggests that bribery in general will decrease because people who are asked for bribes can pay the money and they can still go and complain without worrying that they will be prosecuted. And the corrupt official who takes the bribe will know that if they take the money they face twice the penalty.
It's a fascinating idea. It has come in for lots of criticism in India, but the critics are missing the point. India needs creative thinking to cure the cancer of corruption that is actually getting much worse, and not just in India.
Take a look at this map.
It's a corruption index, put together by Transparency International. The redder a country is, the more corrupt its bureaucrats. The yellow spots are less corrupt. You notice here in the U.S. we're not doing too badly.
So what's the least corrupt country in the world? Singapore.
About five decades ago, that tiny country was newly independent, and for all of the rapid growth, it had the usual third world baksheesh culture. That changed under Lee Kuan Yew. He decided to pay government officials at par with those in the private sector. That killed the incentive for officials to be corrupt.
The Singapore solution is expensive, especially for large countries with large bureaucracies, but it would probably still be a bargain considering how much corruption costs most economies.
Another innovative idea came out of Africa. The Sudanese-born billionaire Mo Ibrahim often wondered why his continent had the richest resources, the richest natural resources, and yet the poorest people.
Identifying corrupt leaders is the problem. Ibrahim tried to change those leaders' incentives. He instituted the annual Ibrahim Prize. It awards $5 million to an African leader who is not corrupt and leads office peacefully. The winner then goes on to get an additional $200,000 annually for life.
A great incentive, right? The problem is they couldn't find a winner for 2009 or 2010. The jury simply refused to make the award to someone who was not truly deserving.
But the point of this story isn't to despair. Corruption or bribery are not innate cultural qualities. Singapore shows that cultures can change. Studies show that these crimes are due to inertia. If everyone's doing it, then there's incentive to take and offer bribes as well. But how do you get to a critical mass where people stop doing it? Well, smart government policies and good leadership from the private and public sector help.
It is possible. This is the year of change, after all. And remember, much of the popular anger against governments in the Arab world this year was fueled by the sense that they were out of touch, repressive and corrupt. So let's try more ideas like the one from Mr. Basu in India.
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This is applicable in situations where there is a genuine desire from the leadership to fight corruption. However, this strategy is ineffective in situations where the entire system is corrupt and the political leadership is unwilling to fight corruption. Afghanistan is a great example where corruption prospers despite the fact that numerous anti-corruption bodies have established.
The problem with corruption is, it fosters inequality and sows social discord among the people. It all depends on to which extent corruption is wide spread, it leads ultimately to social unrest.
I agree with you, yet there is more to it. To accept a bribe the leaders have to lack integrity, need to be dishonest to some extent , creedy and some how rationalize why they are getting this money. Raising the pay in the government is just wishful thinking on the part of Fareed. We in the US have already gotten an OKAY from the Supreme court to make things worse by allowing people and corporation to "donate" unlimited amounts of funding to canadiates. As you said bribery will cause unrest, and eventually at some point civil war will break out only when it gets bad enough as it has in the middle east.
Afghanistan has been a state of war for 40 years, while we hold it to the same norm...If someone go give us REAL figures...I would not deny that is corruption with 1 billion dollars we give to afghanistan annually(note Pakistan> 3 billion annually) while we spend 100 billion overselves..The corruption in Afghanistan is administrative, for basic service people are paying bribes which is horrible- but to suggest 1 billion is misused more the 100 billion we spend is ridiculous.
We all know this guy is right, he want's to lay the money on where it's going, to them. Anyone that would argue this, and think it's an Afghan thing is silly. You're dealing with tribalism, they don't know what's going on in the next door office, let alone in the government. Like, as an american, you know which person is paying your mayor to keep Wendy's afloat? You don't, you won't ever know, unless you're a part of it, in which you would be killed.
Simple politics is simple, stupid TV shows are stupid, I wish you all the best.
America has bee in a state of War since April 1917. That is 94 years, who do you think is getting rich on that?
We have tried to impose democracy and Capitalism on the people of Afghanistan who’s way of life and Government has been based on greed and corruption for centuries and is a way of life in most Arab countries.
It seems to me that we not only have failed to sell Democracy to the Arabs but they have sold their methods of greed and corruption and savagery to our so called Democracies.
Democracy has come to mean a vote every 4 or5 years and no control of what happens in between. What we end up with is uncontrolled Capitalism
I agree with you in Afghanistan. The corruption in Afghanistan is so high it is even spreading to the occupied Coalition Forces including American Forces. When it comes to the contracting agencies and contracting officers, there is a clear indication of how much bride is paid in order to award a contract from a contracting centre in one of the Military Airfileds, whether it be Bagram Air Field or Kandahar Air Field.
The worst is yet to come and so called "Democracy" is nowhere to be found in Afghanistan. What a waste of 10 years.
Great social issue effecting everyone but this is all just discussion, wishful thinking, there is no logical, practical solution. Bribe means relationship of authority and followers out of fear to gain or fear to loose . Bangkoke example is very good but got to be implemented legally. Major problem of corrupttion in India is because of corrupt and unethical politicians. This does apply to many governing authorities of the world. Government implement the laws but if operator of this goverment is unethical and corrupt then with all set laws, bribing will continue. Poltical election is the root of corruption in India. Most of the candidate join political party and do rise at upper ladder soon by means of corruption. Once such elected candidate get status and power in state or at the center, they plan to accumulate more black money to please there higer authority in goverment for there personal political success and power. When governing authority is corrupt, bribing and corruption spread rapidly into breuracrates working for government, in police department, in FBI, in Judges, and all operating system and become part of life for all. For example : In 1981, I was demanded gift money by Electric department Supervisor who check power meter in my mid-level factory. I refused to pay. Next time, this supervisor removed wire from meter without my knowledge and then I received power theft notice . To defend myself legally, I have to pay 10 % earnest money of theft charges and case was resolved after spending lots money and unnecessary fines after 9 months struggle. I moved to USA because I was fed up with bribing and corruption. In India property prices are rising so rapildly because of black money. Government authorities, Judges, all goverment high officials are aware of all kinds of bribing activities but in power game no body will do nothing about it. Fareed is thinking wishfully but he may not be knowing that to attempt such subject in India is out of question. Even attempt of Anna Hazare to curb corruption will die down sooner of later. Why ? Why politician authorities caught in corruption cases are not punished so far ? how is it possible ? answer is corrupt Judges, corrupt FBI . This all about corruption and protecting corrupt politicians by higher govermental authorities because they are already involved indirectly into it. Fareed, I can talk on this subject for hours together because practically I have gone through it with llots of suffering and know practically on each and every aspect of bribing in India. I will not try to get involved in such issues openly because it is dangerous for me and my family. Did you observe ? friend of Raja knowing all about Raja's activities died by suicide. It is not sucide but no one can prove it because all must have been set up by support from higher level. I call such politicians white collar mafia because they are hamring progress of there own country with motive to gain money, power, position, status and phony respectability. Fareed is dealing with media and this is his business activity to deal on such subjects and keep more people engaged on this subjects. I bet there will be no practical solution till govening body is naturally, morally and ethically ready to serve people and ready to accept reasonable remuneration for there work.
TL;DR
Maybe if you stopped going on http://www.4chan.org/b/ so much you would have an attention spam. Oh and you're not anonymous, the big ip flag took care of that.
Bribery is the cornerstone of U.S. foreign policy. Without it,we would be having quite so many foreign policy "successes". The most shining example of this being in Iraq where most of the Sunni tribal leaders where paid off by the C.I.A. to switch sides during the U.S. invasion in 2006 and 2007. Today these people are known as the Awakening Councils.
Thank you,Onesmallvoice. You said it all.
Interesting that the US government will pay bribes left and right, but brings the hammer down on US based companies paying bribes in countries that demand bribes. More than a little hypocritical.
Bribery is the cornerstone of domestic policy. With unlimited campaign contributions by individuals and corporations the USA political system is up for sale to the highest bidder. It makes me want to hurl all over my keyboard in disgust.
Bribery is legal in America. We just call them lobbyists
Exactly, this is the institutionalization of corruption.
well stated
I have been telling this all my friends. You can also add PAC.
Agreed 100%. Corruption is USA in legalized. The color is dark yellow on USA, it should be dark red. The country is run by lobbyists and corporations. Senators and Congressmen are bought by these people. Wealthiest people pay no taxes. They get tax breaks. Exxon, GE got huge amount of tax incentive. Once this country was on top of the world and now it is sinking fast at an unimaginable rate. At least in 3rd world countries, bribery is considered corruption. In USA laws are structured in such a way that it is called tax loop holes, which legalize corruption. Very soon USA will drop down to the level of 3rd world countries. Very sad state of affair indeed.
Bribes are legal congress calls them 3obbyists, they brie politicians all day in DC. Where have you been?
We don't have bribery in the US.
We call it "campaign contributions."
or hiring the politicians spouse or child as a highly (over)paid "consultant"...heck, I recently met the wife of a Texas congressman who doesn't even know what the company she's "working" for even does- and yet still gets paid in the high six-figures...
That doesn't surprise me at all. Bribery is alive and well in Texas. My company had to hire most of the basketball team from a Texas University during the summer in order to work for a certain Oil company. After a few weeks we usually just assigned someone to punch their time card because they were so worthless.
Give you one more. Few years back I worked for a Book Company ( School Books) All of the consultants were teachers who never worked as such but were in the Education Board of some State... no manes here, but it has a single Star Flag. These so called consultants were named in all of the books as such but I don not recall ever seeing them at the office or even knowing what we wrote and worked on these books. But their consulting fees were nice and few times our own salaries...
india will always be bogged down with corruption, rotten self serving politicians. corruption is in the blood of these indians.
there are always few good people with innovative ideas, (after all there are 1 billion plus people there in that stink hole),
but the corrupt people always seem to win and nothing seems to change.
India learned from the expert, the british. No matter where the brits have gone, they have spread bribery like the plague.
@Andres You da Man ! the root cause of evil are the Brits ! Were they not in the US and India as well. The difference is the US set this right by enacting laws ( of course with loop holes), but the key is enforcement. Other countries also have laws but lack enforcement. Fareed promotes Basu's idea, they can easily enact a law that the takers of bribe will be punished and not the giver. Who is going to enforce it, when the enforcement agency is at the center of the bribery system. What the governments need to do is to legalize brides as "percentage in commissions." Commissions are legal in many transactions, so spread it to transactions where most bribes occur. The bottom line is enforcement.
Clearly you have a problem with India and may be not so much with corruption. Any developing society faces this challenge and India is no exception. How can you say "nothing seems to change"? Do you live in India?
I suspect that you are from Pakistan Mumtaz. You want to talk about a stink hole? Pakistan is it. Makes India look like a beautiful garden.
oh lol beautiful garden with 1/3rd of the worlds poor and the largest slums with an active insurgency in north east india ..beeaaauutttiifffuuulllll
LOOK WHAT HAS HAPPEN IN PAKISTAN THOSE ISI OFFICER'S WERE BRIBED BY OSAMA
Hmmm. Outlaw bribes? Maybe we should start with our own country! Maybe you havent seen what FCC Commissioner Meredith Attwell Baker is doing? 3 Months (!) after voting to approve the Comcast/NBC Merger, she resigns to take a position as a Comcast Lobbyist? This is worse, in my opinion, than what is happening in Afghanistan. At least, over there, they are open about being corrupt. Here, we endorse it as just part of our wonderful Capitalist society!
Ya, thats it legalize corruption so we don't have to arrest anyone or change our way. Ha, say our when its only the political system that will get the break. The normal regular people will still be accountable for failures of our politicians...
The map is wrong. Bribery is legal in America and supported by the Supreme Court; its called lobbying.
You are correct..Lobbying is akin to organized manipulation and bribing of policy makers..Though it is a fair deal if everybody have access to the same congressman and can have the same rights as lobbyists..
An interesting idea, but would this policy create an incentive for citizens to falsely claim that they had paid a bribe to a public official in order to get "repaid" money that they did not actually give? Right now the fact that someone offering a bribe can be prosecuted creates a disincentive for making false claims. Also, how do you prove that you bribed an official anyway? Is the complaint itself enough to deter bribe-takers, because now their bosses will watch them more closely?
Good point Jeff. Offering people a financial incentive to report a bribe taker may indeed result in false accusations. However, in a country where corruption is ubiquitous the risk of false accusations may be worth it.
Legalize bribe-taking and make it taxable income and legalize bribe-paying and make it a tax deduction.
cool suggestion. capitalism at work – if a person wants to get his job done quick, he just pays more (at the end, money going to the govt. would be the same ... ). fair play works only for 'play' anyway
Very cool idea.
I just wonder how much would it cost to get away with murder under your suggested system in the US. If there is a tax incentive to bribe, then crime will become more profitable than already is. Mucho Salvaje, don't you think Gavilan ?
I especially like the fact that corrupt politicians in the US who are convicted and serve jail time are still eligible for their congressional pensions. Maybe congress should fix that but i guess that is asking to much for congress to police themselves.
Expecting our politicians to be honorable men is a bit much I believe
Just another holier-than-thou white-world idea of morality being imposed on the non-white world. Guess they didn't send enough missionaries out yet.
Fareed is a bit naive. Corruption does not end because of some nice formula that appears to be logical. In a corrupt system, everyone is on the take–from top to bottom and the enforcers (police) are also corrupt. In Fareed's example, supposing laws are changed to put the burden of proof or accountability on the bribe taker. Even if the case is proved and the bribe taker is punished, the next step would involve all those who lost out on the bribe and they will gang up to make life hell for the bribe giver who got his money back. In such a system, total cleansing is required–from the top political parties down to the peon. When the leaders themselves are corrupt, then don't count on these small changes in the law to be the panacea. It is like giving antibiotics to a terminally ill cancer patient.
A lot of the posts here is basically right about the US system–bribes here in the US is called lobbying, Political Action Committees (PACs), and Senators/Congressmen who accept campaign contributions from special interest groups to vote in a way that those groups want. We have the American Medical Association, the National Rifle Association, the Tobacco lobby, the Oil company lobbies, and a whole host of special interest groups who bankroll billions of dollars through the political system to ensure that their interests are taken care of. So instead of going underground, the system allows the political system to operate in a more transparent manner in another name. But it is basically involves "bribe" taking and "bribe" giving.
Anyone who has anything to do with the defense industry/government interaction, so called 'open solicitation' SBIR program and so on issues in this country has little doubt that some kind of quid quo pro influence peddling is going on almost across the board. In whatever form, direct bribes, indirect favours, cushy job down the line or simple old boys club this behaviour completely undermines the idea that the US practices a free market economy. Perhaps in an anarchistic sense it is some kind of free market – but a totally corrupted one that it primarily self serving rather than national interest serving. Thus the US does not deserve its reasonable rating – the other countries merely have the grace to be more honest perhaps.
One of the dirtiest and most outregious example of bribary is "Tips to the waiters, drivers" in restaurants and Hotels. That too it is a scially accepted norm and one is looked down if he does not pay tips. The most shameless thing is that it is called "gratuity". People justify saying that employers pay very little as salary to these people hence we must pay them Gratuity.
Going by this logic, everyone is entitled for a gratuity of this type, regardless of the kind of job. If a 15% gratutity is allowed for everyone right from Politicains to armymen to doctors and so on , world will be free of bribery.
I wonder if anyone thinks about it.
I'm not following your logic. If, for example, I worked as a technical writer for a computer hardware manufacturer, who would be paying me my 15% gratuity?
You are so very wrong. Tip is a part of person's income and it is socially, legally, morally accepted way of payment. It does not apply to every person or worker, but a special class of worker. may people do not tip, even in USA. NO worker is running after them and asking. It is all voluntary. You need to spend some more time in Western countries.
@ Anup and AB Tips/gratuity and bribes are two different dealings. Tips/gratuity is given after service is rendered, bribes are given before a service is rendered to enhance the dealing. Tips are voluntary, to ensure prompt service next time; gratuity is generally charged by the management and may be an illegal charge above price. Did I do any good here?
1) Basu's idea is a good one – but only for India
2) Singapore solution is good – but only for Singapore (same as India no one else can use it)
3) In Afghanistan th eproblem is NOT bribery but LAWLESSNESS – Bribery is the result of lawlessness. You can fight it in Afganistan by creating law and order first.
Ahem....Ben Nelson
This strategy won't work. Mr. Basu's strategy will only be applicable to people taking or making bribes in small amounts. Big businesses who bribe big ministers to get permits or contracts will never go and complain. First it is an embarrassment for the businesses PR and second the business will need that minister again and again. The people making or taking small bribes does hurt the economy, however these bribes are put back in the economy. The minister who takes a bribe of millions of dollars is not putting that money back in the economy rather in an account in Switzerland. So in all fairness I would love to see Mr. Zakaria write an article on how big banks all over the world support directly or indirectly the ministers of different countries in taking bribes. The banks stash away black money and they do charge a premium for this. Not like these banks do not know anything. They just sit and make their cut.
This world is going right down the toilet.
@Brad76 Toilets-R-Us
Mr. Basu has this idea but this is not the first time someone has proposed this. Several years back, Shri Atal Bihari Vajpai had suggested that corruption be made legal and no punishment to anyone. The hope was that the greed of bribe taker will go down by taking smaller amounts from many people than taking big amount from one person. Of course that was the radical thought then and it didn't materialize.
What Mr. Basu is suggesting has a bigger problem though. How can the bribe giver complain and who does he complain to. Unfortunately, the bribe taker has the reach much longer than bribe giver. Bribe taker is probably the last loop in the food chain. If the bribe give goes to complain, it is more likely that the officer he complains to is part of that food chain and then guess who will get screwed?
The Indian system does not work as simple as Mr. Basu has suggested. I am sure he has taken all of this into account in his paper. What Mr. Zakaria has described is probably a very simple version of it but things are not that simple out there.
I'm a 41 year old American and I've never encountered a bribe until I visited a mexican border town. Campaign contributions, lobby influence, and other types of financial influence of a political system hardly constitute a bribe. I understand that everyone wants to give a cheeky answer so they can look witty. But they apparently don't know what a bribe is.
It's always legal to give bribes!
It's not legal to "get caught" giving bribes, if you know what I mean....
BD
I have no problem with legalizing bribes for public officials,
provided we also legalize assassinations of them, too.
Good one!!!
Gavilan Salvaje has a more workable solution for India than Basu: Legalize bribe taking and giving, with former as taxable income and latter as deductible expense. I will add that all participants should have equal access to information on the fixed bribe rate or amount (or alternatively the bid and ask amount). This information could be posted in various media. This will reduce uncertainty for bribe giver, which is a huge cost. Good luck.
If we legalize these bribes, will they be tax deductible??
I believe US is the number 1 at corruption. In poor countries people steal in small amounts and they are not professional. In rich countries, people are professional and steal in huge amounts and never caught. For example at every purchase in the hospitals ( mostly city, and state hospitals) the people at the administration get commission from the vendors. They replace the hospital equipment often to get commission. They purchase unnecessary equipment to get commission. This happens througout the US at almost every hospital. It should be happening at other non-healthcare institues too.
Mr. Basu is out his mind and so is everybody who agrees with him.
This is the same thing the U.S. did. We really reduced bribery of public officials by paying them at par with the public sector. I lived in Egypt and Turkey and man bribery is everywhere for everything. Cops shaking you down for money without any subtly. Turkey was extremely bad, worst than Egypt, the cops would literally block the interstate and wave all rich looking cars to the side and then proceed to ask for bribes one after another. if you did not pay, they would just keep you there until you paid or let you go once they figure they could get someone else to pay up and have you stop waisting space. In Egypt and Turkey, it was so bad that people would slam on their breaks in the middle of the highway and full reverse or just drive through the median to avoid the cops, in mass, no exaggeration.
Obviously Mr Basu needs to put more thought into his idea...it has a major flaw. What if the "briber" is lying ? You can complain about the government worker who is actually doing their job, say you had to bribe them...and guess what at the end you get paid !! By definition there is no proof of the transaction....
I think a better solution is smaller government (privatize some services), incentives for government employees for better service, Quality of service requirements, competition within the services, higher cost for higher quality of service etc (all of these have shown to work in the private industry). For example, (I used to live in India), the Indian government passed a law (I think in the 90s) that the passport application related background check had to be processed within a month or by default it was assumed the check was done. That changed the entire bribery mechanism....in my case when I applied for a passport (it was before this law) the police officer indirectly asked for a bribe...I refused and needless to say it took me 3 months to get a passport. I don't think that happens any more. In addition, they let people who are in a rush "officially" pay more to get a passport sooner. Previously the way you got faster service was via a bribe.
The best thing to do is just to pay officials well. It is very simple. Once you do that you get rid of most of the bribery and then it is easy to track dirty officials. When vertically every cop, fireman, clerk, etc is on the take, there is very little you can do in the ways of prosecution. I do agree with many that in the U.S., lobbying is just bribery for the rich. It stinks, and should be stopped or further regulated. Government needs to remain impartial and for the people, lobbying takes gov away from these ideals.
Transparency International does not consider lobbying to be bribery, but the effect is the same. Lobbying = bribery. An accurate map would show the US just as red as the rest of the planet.
There are several types of corruption in governance: Legislative, Judicial, and Administrative. Every nation should be compared against these to get a clear picture of the type of corruption we encounter. The type of corruption discussed in Fareed's article was about corruption in general, but the most suffered by the common man is the administrative variety, commented on by Kaushik Basu. His suggestion is certainly a great one that can be implemented with ease if there is political will. Equally important is the consideration to pay government staff better than the paltry amounts of money paid in salary. Growing-up in India I have learned to be not corrupt following the examples of my elders. One of my cousins was an Assistant Sales Tax Commissioner who was straight to the core. He could not be bribed. I have heard some say that he was a fool since his friends became richer and richer while the Commissioner lead a regular life toiling to educate his children and meet their day-to-day needs. Similarly, I looked upon an uncle who retired as a Squadron Leader in the Indian Air Force who was a gentleman and an officer. He has never smoked, drank, or has done anything that my conservative Christian family considered non-Christian. I liked him so much so that I changed my name and adopted his at an young age. Christian, Hindu, or Moslem, the family and society takes on a strong role in raising us with the values one needs to be not corrupt. As a student I was involved in humanitarian work through social organizations: thatched roofs of houses for the poor, collected clothes for the Bangladeshi refugees in India, and so on. About thirty years ago, I moved to the U.S. and worked as a City Planner. I am proud to say that I have not even had a cup of tea from developers who often hoped to take me out to dinner. Even consultants I hired respected me for my stand to do business transparently. One such consultant begged me to go out for lunch (after a contract was finished and after I moved on to another City) and called it his last wish! Only later in the conversation did I realize that he was a dying cancer patient. He said my conduct was so forthright that I deserved to be recognized and his way of doing that was to take me out for lunch. I settled for a lunch less than 10 bucks and I often remember that story. The man died after a few months. My work continued working for several other cities. Yet, I suffered so much pain and anguish in cities I worked due to administrative corruption. For example, well-connected developers walked-in and demanded to zone-change their land to fetch higher values. Mayors and City managers will conveniently expect of you to flout laws. In one City life has become so miserable where they tried all methods to oust me from my job since I didn't play along. So, corruption exists everywhere; just that it may or may not affect the common man's life and the variety we deal with in India affects the common man's life where a baksheesh is often expected and paid - even to get a copy of your birth certificate. The U.S. was a very corrupt nation when the Mafia called the shots in Chicago, New York, and elsewhere. But things have changed now due to strict enforcement of the law and increased public accountability we demand of our governments. Aside from Kaushik Basu's ideas, the government in India should promote transparency in the conduct of public's business. For instance, compare how land development is done in the U.S. and India. While we conduct public hearings here before a major project is approved, there are no such regulations in India. The land mafia in India works with officials under the table and there is no transparency in what happens. Involve the people in the neighborhood to voice their consent or dissent and make the process transparent as possible. Provide public servants a salary that will allow them to live in decent homes, be able to educate their children, marry-off their children, be able to save for retirement and such needs. A member of the legislative assembly, a friend, responded this way when asked about why corruption was rampant among politicians: that the MLA's salary is not even enough to pour gas for his car. Since his family was rich, he claimed he didn't have to beg others, but many politicians are paid for by business magnates who expect the returns after the elections. To my friend, it was a vicious circle. No wonder the election commission of India confiscated Crores (Millions) of Rupees in illegal election funding in the just concluded elections. America covers that account by legitimizing political contributions. We all know about the strong interest group politics and lobbying that goes on in every election here. We also hear about the arguments for and against government funding for elections to steer clear of interest group politics. So, there aren't too many answers as to what will it take to be less corrupt; it is only relative, but the litmus test is in asking how far a country's corruption affects the common man in their day-to-day living. If that is a yard stick of measurement, we may follow the U.S. policies that make the common man's life better and not hope for the Utopia we all wish to live in. There isn't a perfect world. On the personal side, our circumstances in which we are raised and the role models we hope to follow are important, fully knowing that the circumstances we are born into, nurtured and raised can vary. Ultimately, the change in us has to come from within; "Be the change you want to see in this world," as Gandhiji once said.
Reduce it to two sentences.
My two cents worth:
1. Enforce Parity in Pay between Private and Public Employees
2. Create a system of governance through Open Public Hearings based on Open Meetings Law for all development decisions.
Lets just end all corruption by legalizing it. Yeah, that makes a lot of sense.
That is what we did in the US
Mexico thrives on bribery . You got to bribe the cops to give back your passport , license , luggage etc...
What the Basu policy doesn't really take into account is that a large amount of bribery isn't done on a cash basis, but rather with gifts or favors. Second, by removing the fine for the bribe-giver, people will be all the more apt to offer bribes (and India certainly can't pay their vast web of bureaucracy more, so the incentive to take them is still there), and richer folks will still be able to pay their way to whatever while the poor won't. But alas, I have no game theory to back it up.
I'm also hesitant to use Singapore as an example; corruption has fallen sharply in Singapore partly as the government has privatized most of its large enterprises, like power companies and shipping companies. Singapore is also a tiny country so the state apparatus is thus inherently tiny and easier to reform, and the bulk of companies operating in Singapore are foreign companies with foreign employees, so corruption there generally has less to do with Singapore and more with foreign companies. Since the 2008-2009 crisis, investment banks and traders have cleaned up a lot of their own corruption, and they constitute a large portion of Singapore's foreign companies
One would have to legalize paying bribes world wide, other wise..... For instance, a US base company pays a bribe to an Indian official to get it done, then turns around and reports his to the Indian government. All fine and dandy, but once the US officials find out, they will bring the hammer of god down on the US base company as it is not only illegal to pay bribes in the US but outside of the US as well. That is unless you are the US goverment itself.
One of the two has to have amnesty if the practice is to be rooted out, but while we're at it expand the definition of bribery to include just influence peddling so there's no need for the specific quid pro quo to find a criminal offense. Make it like the "honest services" statute was supposed to read, not how the reactionaries on the current Supreme Court interpreted it.
YOUR ENTIRE GOVT IS ONE BIG CORPORATE BRIBE!!! LOL!!
It makes no sense. As soon as the bribe taker fines increase, the bribe amounts would increase accordingly.
To mark the USA in yellow is ludicrous. The USA is one of the most corrupt places on the planet.
However, they don't call it bribery, they call it lobbying, so it's okay.
The US political system would make me laugh, if it didn't make me cry first.
you have not travelled then, when is the last time you paid a bribe? The red countries, everyone are required to pay bribes, to recieve a licence, to do anything with governmental officials
Changing laws is pointless if the whole system is corrupt. Enforcement of the existing laws is needed. For that, you need a law enforcement system (police and courts) that is not corrupt. How do you get rid of corruption from law enforcement?
Fareed, As you do with other subjects research aid to Afghanistan..from my experience corruption is used a pressuring point against the Afghanistan- US could care less about corruption(we have example around the world of that. Now the numbers, while we spend 10,000,000,000 dollars(10 Billion)monthly in Afghanistan only 1% of it goes through the Afghan govt to provide services for its people- The corruption in Afghanistan is administrative corruption- quite frankly engineered by us but that is for another program. Thus, Fareed look at the real number, account for some project by the US and Afghan gov't individually- than you would have a better idea. Let me assure you the Afghan corruption can be eradicated- even though it is in a state of war...look back at history at the pro-soviet government policies in 90s(it has nothing to do with communism..at that time I remember anyone who took a bribe would be defamed by the enitre community and it was such a taboo and against the norm to take a bribe. FAREED as a neutral person you can illustrate reality with real figure on "aid" to Afghanistan- I am sure it would be productive for as all around. Thanks
I don't care about India. I want the lobbyist to get their money back, and I want the U.S. congressman to have to pay the constituents whose interests he has just abandoned double the lobbyist's money back.
You think identification of corrupt leaders is going to have an impact on corruption? NO, NO. Look at example of garlands worth crores made out of currency bills for Mayavati. When media covered the first incident, her so called fans went ahead and had multiple events of garlanding with currency. You think Anna Hajare's commission is going to do it? Look at Bofors commission work! Take MGREG, employment guarantee for rural farm labor, laborers sign a document attesting 15 days work where as not a single day is put in by them, they get paid 2 days salary, remaining 13 days salary is divided between the work done approval officers, all the beaurocrats down to the person who prints out the invoice on a computerized system, politicians and the rich contractor.
What we need is an uprising from the bottom similar to Middle East that will put the fear of death into the bureaucracy and politicians. And that is not going to happen because enough crumbs are spread around to keep the population below the threshold of revolt. I hate violence and I know violence is not the solution. Then what? I honestly don't know. Perhaps provide free higher education so that people can bootstrap themselves out of poverty.
Corruption is endemic and has become part of DNA of contemporary Indian life.
In a country where 99.99% of the citizens go their entire lives without encountering a bribe in their lives, I'm surprised that the US wasn't in the bright yellow. For those people who think the US should be red because of the way money is used to influence political change–you just don't know what bribery is. I for one, think Americans are jaded, spoiled, babies much of the time. We have it so good here yet we complain the loudest. I suggest you take a trip somewhere overseas some time. See how the rest of the world lives. When you get shook down for all the money in your wallet, else face jail time, you will better appreciate the quality of government and law enforcement we have here.
I actually find the countries where bribes are part of daily commerce more honest than dealing with Americans.
Which part of giving somebody everything in your pockets so you don't go to jail for an offense you didn't commit to be so pleasant?
The article is really describing a forced gratuity or "protection fee." Not a bribe.
What Dr.Kaushik is unaware is that Indian's will create a Derivative bribe which cannot be policed.The issue in India is no one knows what the law is, how the law can protect them and which credible contact will solve their issue.The judicial system is incompetent and a puppet of the executive.Indian lawyers need to be more competent like the freedom fighters lawyers – Gandhi, Rajaji, Rajendra Prasad, Ambedkar...
Yes we need creative solutions to corruption. Very few get caught so Basu's solution will be completely ineffective. We need structural changes that will eliminate incentive for corruption. examples: stamp duty on property transactions is atrociously high resulting in registered sale price 20-50% of the actual transaction. Reduce the stamp duty to reasonable levels and there will not be incentive for hiding the real sale price and sub-registrar does not control the transaction anymore. Take MGREG, projects need manual labor and machines, so have flexibility in the program so both method could be legally used and no more incentive for corruption.
Remember, person's who take bribes have more money to be creative, in fact they tend to be one step ahead of regulations.
Curious. Those like Martin that are belly aching about the US lobbies
"To mark the USA in yellow is ludicrous. The USA is one of the most corrupt places on the planet.
However, they don't call it bribery, they call it lobbying, so it's okay."
Are you from a country where special interest groups don't use money to "attempt" to influence politics? Do such a place exist?
Exactly. These contributions to the politicians are nothing but bribes. Ever wonder why 50% of Americans are employed by small businesses, but only big corporations get all of the attention in DC? It's because the corporations are flush with money and buy off the legislators of both parties. If it's labelled as campaign contributions, the legislators get to keep what's not spent, and that's usually in the millions on federal elections.
I have studied Philippine history and culture. I am convinced, in the Philippines, the poverty of the majority is caused by corruption. Like children looking up to their parents, Filipinos look up to their currupt government. It is all they know. Singapore went through convultions when it changed to become the "Gem of Asia" or "Garden of Asia". It remains a strict country with strick punishments like caning. Sorry, I digress. Corruption can cause poverty among the general population, whether in concert with other evils, or all on its own.
Just like in America, the more corrupt the government gets the richer the rich get and the poorer the poor get.
I wonder if it's the severity of caning in Singapore that keeps its crime level low and corruption practically non-existent? Obviously, this procedure won't be constitutional in the U.S. due to the 8th Amendment (it's definitely a "cruel and unusual punishment," but I could see other countries potentially benefiting from it...
In China they just execute corrupt official, how much of an incentive this is. The juries is still out
That isn't exactly how it works in China. They really do it just like they do here. They only prosecute the Business or Government officials who do not pay their higher ups. As long as they remember who gave the power to steal, they will be taken care of. Much like our Congressmen in DC.
Here is one better. The gov official that requests a bribe... is to be fired and loose their pention. If this is a manager or a person in charge of something important then they are to be charged and sent to jail. All of a sudden a bribe doesn't look so good... the end.
Ok..
To look at international comparisons let us first ask is LOBBYING in US deemed to be part of bribery or not?
Lobbying = legalized and taxable BRIBERY.
US congress, senate and supreme court are a BOUGHT, BRIBED and CORRUPT system
Why?
Ok lets look at some observable facts:
1) How many laws have passed that have challenged existing business? NONE
Laws may be passed, but by the time they are implemented they are fully diluted and unfunded
Examples
a) Financial reform. The biggest scam of 21st century. What happens?
All laws are fully diluted and being diluted letting business as usual exist.
b) None of the real big shots have been prosecuted e.g. the CEOs of the big mortgage underwriters or the banks or the hedge funds who perpetuated this international fraud.
c) Oil companies pay the most subsidized tax in US and US runs after India and China asking them to open up their markets!!! Kettle calling the pot black.
These are EXTREMELY biased US and Western economy centric measures which at the end are IRRELEVANT.
India has a GDP of 7%+ in the last decade and looking at 7%+ in the next decade and US was at ~3% and looking at 2% at the best.
So wake up and look at the real economic measures not at the some silly numbers that the western economists concoct to feel better about themselves.
How are bribes proven in the first place? Why can't people falsely accuse landlords or politicians or bureaucrats in India of corruption as a means of blackmail?
I wonder if Transparency International included PAC money in their US statistic. After all, PACs are designed to funnel money to politicians in exchange for corporate access by lobbyists. That sounds like bribery to me!
Is it me or there exist other people who think this Zakaria gentleman comes more often than not to an absurd conclusion.
Might be you only
This idea basically suggests that a government needs to make everything that hurts other people legal so they can be aware of the process. In other words the government does not need to enforce anything or educate people in anyway and the government runs away with all the money. Who needs an anarchists government? We give them all our money and they enforce nothing that helps us, No standards of good medical care, no standards of good small business, no standards of education just anything goes and that my friends costs you all your money in taxes.
NO THANKYOU
I have a better idea. Make the penalty only for the bribe taker, and then make the penalty 5 times as much, for taking the bribe.
Only when the penalties far outweigh the benefits, will you stop the corruption.
That is what we need in Washington, as well.
how does this site survive with such stupid journalists.
the simple solution to bribery is to establish a paper-trail.
If it's just one guy and one bureaucrat than it's his word vs the bureaucrats' word. If you then fine both of them for the bribery then you are punishing the citizen twice if he complains. He then has a natural incentive to just go along with the bribe. But if he doesn't pay a bribe then without any record of his paying for the service, there's no incentive for the bureaucrat to actually take action: he can alway claim that no one asked him to do anything. The key, very simple, is to establish a paper-trail. Then the bureaucrat can't deny that the onus is on him to perform a service. Even better if there are dates and times on the paper trail.
Do that and some undercover work and the problem goes away very very quickly.
I assure you, sir, it is only you.
For all government contracts in Saudi Arabia, you have to have a Saudi partner and he collects upfront 15% at the time of NTP as written in contract. It is NOT considered as bribe. This way, rest of the contract goes well and there is complete transparency.
America should be in the red. Bribery DOES take place in DC, every day.
Awesome idea, Fareed. Let's make officials everywhere into those found primarily in third-world s**t-holes...like India.
Lobbyists = bribery.
We just use a different term for it.
The only reason that our country is so comfortably yellow on the map is because our Scoundrels and Thieves have made paying them off legal. The 3.8 Billion spent on lobbying can't be called anything except bribery. The American people aren't represented in Washington. In fact the only time we are even considered is at election time. Then they just think up lies to tell us to get our votes.
When our government bureaucrats want to get a little payola they call it an expediting fee, another example of privilege for the few who can afford to pay. Or Legal system is a glaring example of the rich receiving a special kind of justice and the poor over represented in prisons.
Seriously? An "expediting" fee? Have you ever actually encountered such a fee that you felt went into a government official's pocket? I sure haven't. I doubt anybody I know has either.
Where do you guys come up with this stuff?
US have less corruption at bottom level. But those in Congress who are in Washington DC & lobbying for companies, Wall Street & others are getting lifelong & extreme monthly doles to get the laws passed or obstruct anti-interests laws blocked. What is happening now, GOP is blocking tax cuts withdrawal. After withdrawal of tax cuts, these industrialists or companies have to pay at prevailing rates without concession granted earlier. In fact tax increase must not cover withdrawal of concession of tax cuts which were objective. Now these companies are earning billions & are profitable industries while concession are given in economic depression or stagnation. Oil is booming business in all countries & Middle East countries are surviving on this monopoly besides keeping their people deprived & poor without all human necessities of life like education, opportunities to jobs by not developing industry but only enriching the ruling elite group of families. In India transparency of systems is zero. People at large are not given the computerized formats to file any anything. Every applicant is in darkness regarding the system & process in absence of computerized system as in USA. Those in officer’s chairs are not responsible for output nor check the subordinate through automation for output & are paid monthly salaries without productivity as no explanation on computer system is available. India has made advancement in Computer software but nothing to stabiles its productivity with computer software which alone can remove or reduce corruption. In computerized world all productivity is available to the supervisor on internet or intranet for daily & even hourly evaluation which is absent in India as well other most corrupt countries. With computer system integrity & honesty of performance is supported by data which is only reliable tool. Human ingenuity & crookedness is allowed to work in India which is cancerous & main weakening disease which is curable but who should ring the Bell. All these evils can be removed or mitigated only by computerization with performance of each element of production on data followed by strict remedial measures. Politician does their own way as its workableness & absence of proper systems give more bribes & more frequently with laws too lengthy for punishment & firing as in USA. Labor laws are too loose & labor unions make the worst use resulting collapse of so many industries. There is no other way to eradicate corruption whether it is India or any other country. If India switches on Computerization of all its systems & procedure with equal stress on skills & education, India will have very large job pool & source of industrially trained workforce. It is possible as the India's populations has larger English Language base unlike China & other countries even USA. I am appreciate that Freed Jakaria has taken up this cause & with interest to target India to weed out corruption which is & had been the weakest characteristics of its people as well governance at all levels. Moreover Income Tax dept. itself is most corrupt in recovering taxes & guide people how to escape. This is biggest cancer in revenue recovery from people. Legitimate people who claim exemption through legal means are harassed to extract bribes before processing the applications which again is very humiliating for levels up to Commissioner & Deputy Commissioner level who advise & act on advice of juniors & fail to exercise their own authority or overrule based on genuine citing others in line with defective claims. This is interior functioning of India & great stigma & shame on the young generation who are clueless to start their life with right & sincere motives in all sectors. BJP a second largest political party in India opposed through tooth & nail Indo-US nuclear treat for electricity generation & thereafter after it was signed organized protests & demonstrations for electricity in all states with CPM & Badal Group Akalis Govt.
In the US we have taken the lead in a form of 'legal' bribery – campaign contributions. And this lies at the heart of much of our government's lack of responsiveness to the public interest, from misbegotten wars to bank and Wall Street collapses.
Mr. Zak I would prefer if U Open a Indian Curry house i hope u will be more successful in this business instead of writing about things which does not make sense.
Indian Curry GPS
Gay Hind Sorry Gay Gay Hind
The U.S. had a whole LOT of bribery,,,,it is called LOBBYISTS
all fine & dandy, but we don't vote in india or anyother place in the World. you don't need to preach to us about bribes because it is rather rare in the US. Great idea, but we have little influence on such matters world-wide...
Bribery is not cultural. It is systemic to human beings. In the US we have decided to legalize bribery semantically. It has been renamed "campaign contribution." To make it complete, the US Supreme Court has decided that a legal construct, the corporation, has the same rights as a living person and can give campaign donations. If we included campaign contributions as bribes, the US would have be a bright red color on the map.
As others have pointed out, we have lots of bribery at the top levels of government through lobbying/campaign contributions. Ordinary people usually do not encounter bribery directly such as in India, where many transactions include bribes. There are also other kinds of corruption here, such as the "revolving door" between corporations and government regulators regulating those corporations. These government regulators know that if they sit back and let industry do whatever they want, there will be an easy and highly lucrative job available for them once their "public service" career ends.
Where has this guy been? Lobbyism is bribery and has been going on for years!
The idea, while not without some interesting angles, only really applies to petty corruption and graft. It assumes a briber is basically just trying to be heard or get by. The large-scale stuff - multi-million dollar contracts, etc - are just too lucrative for both sides for this idea to be effectual. The bribery in such cases are essentially large business transactions.
Not doing too badly here in the U.S. ? Depends on which side of the fence you're sitting on.
Can anybody see russia?this is America we were built on corruption.they're called politians,lobbyist,.And don't forget raciest.and how about russia?
That's similar to my idea for eliminating illegal immigration. Make it a big fine for employing an illegal alien and give part of that money back to him on his way home. A $20,000 fine with $15,000 back to the guy providing the evidence would likely end the problem in weeks.
Corruption index must take into consideration other forms of gratification such as Electoral votes, favorable legislation, etc. When public interest is not paramount but the interest of a foreign nation becomes paramount or the interest of a multinational supersedes the interest of individuals.
We cannot just talk about monetary compensation; we have to look at lobbying efforts etc. also.
Interestingly most of the graft is instigated by the colonial powers, essentially because they have the money.
What about US– Your country runs on bribes by so called lobbyists.
Hey, here's a revolutionary idea. Reduce political bribery in the US by arresting politicians and putting them in prison! Anyone here remember the Abscam stings in 1980? FBI agents posing as foreign businessmen offered bribes to members of Congress. Six of those scumbags took the bribes, and were promptly arrested and imprisoned. That was back when America at least pretended to be honest. Can you imagine that happening today? Me neither.
Gosh, here in Florida the state legislature just passed new law that makes bribary total legal here. It is totally legal now for state legislatures to accept money from those with deep pockets who want favors or laws passed to benefit the few. And the US Congress we have now basically does the same except its called corporate lobbyists courting favor. Who said that USA is a democracy for the people by the people.
Bribery works for the GOP.
First of all, I don't really believe that any US Citizen could relate to the bribes you are talking about, unless they have lived in a third world country. The main issue is poverty and well underpaid government officials, plain and simple "they basically" have to bribe in order to feed their families. An Italian lady once told me "that is the TAX that we have to pay, people think they are not paying it, but they do, every single time they deal with any branch of the government" Mr. Lee Kuan Yew had the right solution and it shows, Singapore is the least corrupt government on the planet. And it is NOT the most expensive solution, in the short and long run it is the CHEAPEST. Mr Kaushik Basu's creative idea does not address the main problem which is the low government payments that are not enough to feed their families. As creative as an idea, people would create better and more clever ways to bypass this, they will go into survival mode. Also, Mr Mo Ibrahim's idea has not even started to work, they have not found one official that is not corrupt, It doesn't address the meager salaries either. Unless these workers get paid a "decent" salary where they are able to sustain their families, these problems will never ever go away
Just when I thought this guy couldn't come up with any more hair brained schemes, Zakaria comes up with this massive stinker. Bribes as a legal gratuity. LOL!!!! Bribes are not a gratuity, genius. Bribes are payments for influence and favoritism, not a bonus for exceptional service. Just the idea that it is or would be acceptable for an individual or a corporation to pay any sum of money to influence a politician or government official is a crack pot idea at best and trying to compare bribes to say the gratuity one pays a waitress is pure insanity. Politicians and government officials don't make minimum wage for one and two a waitress doesn't hold the power to influence legislation, zoning or permits.
With your idea it would be purely legal and acceptable for say an individual to say "pay off" an officer to make a ticket go away or better yet maybe look the other way when I bump off my neighbor. Then of course if one is already in jail, they could always "pay off" the parole board or the warden or the prison guards to just let them out. But of course with the system you are talking about only the poor would wind up in jail any way, because the rich could basically do what ever they want it just might cost them a few extra bucks.
If you will but look at the map provided, you will note that except for the English speaking world and the Nordic countries, Bribery is, and has always been a fact of life throughout history. I have had the opportunity to travel a bit and when I bring up the topic, the response is that if we, as Americans refrain from the practice because it is against the law in America, we are proving ourselves fools. Face is lost and the facts are that in time, and money, you end up losing more than if you had paid the small amount/fee expected. Why is the fee expected. First, everyone who is in a position to do so does so, period. No argument. The practice has been endemic since before Biblical times and in their culture, is not illegal, generally, or is expected. Generally speaking the anti-bribery laws on the books in Asia an Africa are only there to placate the American and British governments who threaten loss of aid funding if the laws aren't passed. The difference in an Asian bureaucrat's response to a request for a permit, or government form that must be tendered as part of a petition for action when it is accompanied by a ten dollar bill folded neatly within the document. First, there is immediate shock that here is a Westerner who understands the system. Guess what? The required response will be the minimum amount of time required instead of a two to three week wait with daily excuses for lack of performance. My take is that it is counterproductive for Western Governments to demand that local representatives of Western businesses refuse to use local custom in their business transactions. We can, and do expect large intercontinental business conglomerates to abide by Western law because very large sums of money are involved. Those transactions should be free of the taint of petty bribes, but allow the locals to conduct business however they wish.
to JQ. What you say is true in most respects, but even during the height of modern colonialism, when local civil servants were paid significantly more than the local shop owner or farmer, yet, the petite bribe was expected, and paid without question. It was just another cost of business as usual just like my friend the mortgage broker charges a $1,000 "Handling Fee" for every property sale processed. Note, the escrow company, and the title companies also charge these fees, yet no one complains about having to pay them, because there are indeed, required processes that he performs that do cost him money.
In the third world you would have the $ 1000 "Handling Fee" that "officially" every one has to pay and then there would be the "fee" to whomever is processing your property sale. That "extra" fee (bribery) applies to EVERYTHING. You go to a driver's license center for your driver's test, after waking up at 4 am in the morning, be in line for about 4-5 hrs, and if you are "lucky enough $$$" to make the cut for the day, you pay the "government fee" for the test, then you would have to pay the government employee another "negotiated fee" otherwise it doesn't matter how much you know about driving YOU WILL NEVER PAST THE TEST, then if you are lucky enough they might get your picture on the same day, and maybe just maybe you would walk out with your drivers license at the end of the afternoon...Here in the USA I renewed my drivers licensed two weeks ago, from the moment I went in, filled out a computer form, sign up the drivers license, taken a picture, and "voila" walked out with my drivers license, it took about 10 minutes, maybe 12....Take a wild guess how much time take to make a payment on your phone bill (phone companies are mostly own by the government)...You cannot send any checks thru the mail, the internet is good, but not too many people have a computer...ALL the government services worked about the same...A policemen? if one approaches you, you are doomed, you would have to give him something...you don't even have to be under arrest, but you would if you don't "help him"....I could go on and on.....
Bribery is endemic to the people of color world over. This is why no democracy/republic's based on truth, honor, and enlightenment have ever evolved out of cultures of color. Like NewOrleans after Katrina, and Mogadishu, and port Moresby – the primitive indigents cannot grasp the concept of truth, justice, and the Judeo-Christian way.
Colonialism, imperialism, evangelicalism, the Peace Corp – all tried in vain to civilize and enlighten the savage beasts and point the way out of darkness. Pearls before swine.
May your political correct lies of multiculturalism and geniocidal aspirations within social justice burn along with all of you dark souls; May the horsemen of the coming apocalypse trample you all. I curse you! I curse you! I call it down upon your unworthy heads! You'll bow, you'll bow, by the BILLIONS YOU SHALL FALL!
Bribery is symptom of a larger problem of governance and the system not working. People pay money to keep the flow of services going, to keep commerce happening. As you say, this is where citizen engagement and transparency are key -for example, in Bangladesh Transparency International provides price lists of services outside of hospitals so people are not overcharged through bribery: http://wp.me/pxeWx-9Z
This proposal deals with the demand side for bribes. Shaffi Mather (TEDIndia Fellow) has some interesting things to say about the supply side and how to set up a for-profit bribe-busting group:
http://www.ted.com/talks/lang/eng/shaffi_mather_a_new_way_to_fight_corruption.html
Just bring back the communist system where the state owns everything. Problem solved.
On reading this blog, my first reaction was: "This is like legalizing marijuana!" And in fact it is, but not in the way most people might think. Most right-thinking people would, in fact, reject both ideas out of hand as being just plain wrong. And who can blame them? After all, bribery and illegal drugs have wrought immense harm to uncounted people the world over.
The thing is, bribery and illegal drug use are good examples of "Caveat emptor" ("Let the buyer beware"), because in both cases the "buyer" is over a barrel. If drug use ruins his health and sanity, or if paying bribes leaves him utterly destitute, he has no way to bring the "seller" to account because by dealing with that "seller" he commits a criminal act and thus deprives himself of any help the powers that be might give him. In such a predicament the "buyer" usually has only two choices: to dig the hole he's in a little deeper by returning to his "seller" and master like a fish on a line, or - more rarely than we'd like - to find the strength of spirit to break away and start clean.
Naturally any "seller" in these circumstances will prefer to keep the transaction illegal, in order to keep his "buyers" as helplessly dependent on him as he can manage. And just as naturally, such a "seller" will resist with tooth and nail any attempt to make his pet transaction legal, and therefore subject to the sort of scrutiny and regulation that makes him answerable to anyone else, least of all his "buyers."
This isn't just theoretical daydreaming; I've seen it happen. Here in the Philippines, I've seen long-time clerks at our local BIR (Bureau of Internal Revenue) explode with rage over the computerization of their office. This was because the computers' speed and convenience - and the ease with which their bosses could now monitor them - made it impossible for them to delay the poor taxpayers' tax returns forever, and then accept baksheesh to "help speed things along." Needless to say, the computerization of our BIR proceeded despite the clerks' protests, paying taxes is no longer as agonizing as it used to be, and the clerks who bitched the loudest about the BIR's new-fangled toys are now long gone.
I suspect much the same thing will happen with regard to "legalizing" bribery (which, by the way, isn't quite what people like Mr. Basu had in mind; read Mr. Zakaria's blog again, carefully). It may even happen with the sale and use of marijuana. Stranger things have happened; after all, scarcely a month ago Osama bin Laden thought he would live forever.
What a lame example.
A person shortcutting to pay for services ISN'T the same as nation-wide policies being influenced by bribery, the results which affects MILLIONS for generations to come.
The Indian approach is clever and could go a long way to cleaning up the petty bribery. The problem is that petty bribery is not the institutional cancer that kills. It is a few extra bucks to facilitate a transaction involving a typically underpaid civil servant.
The broader issues are things like the "favors" that come with campaign contributions in the US and skimming by senior officials in places like Africa and the Middle East. This higher level corruption tends to reset the economic fabric and tilt the markets toward a particular out come. The result is far more drag on the ecomomy,
Sting operation. Jail the one giving the bribe and the one receiving it.
A clear definition has to be made between a gratuity and a bribe.
Another to watch for is bribery wherein it's hidden in a bank account of somebody else in a foreign country.
Follow the money.
"Jail the one giving the bribe..."
Consider this scenario. You go to the DMV for a license. You pass all the tests at which point the official says hand over $100 or I ll fail you on the road test. You recoil in horror and approach the higher official who demands $200 for your audacity and promptly fails you on the road test.
This would never happen in the US. But its the way of life in the 3rd world. Do you still want to jail the bribe giver?
Bribery has been so incredibly legal in the US for decades...it is called campaign contributions!
No reason not to trade with them. If you have money, we will trade, like any whore would.
Penalizing the bribe-giver is such a moronic idea. No common man wants to give bribes willingly. If some one is inclined to speed up/bypass a process and gives a bribe to do that, the govt official can simply refuse it. Such bribe givers are a very small percentage of the public. In most cases, the common man is fleeced and out right robbed of his money. Mr.Basu s idea seems a very practical approach and would encourage the public to file complaints without fear of criminal charges.
Don't kid yourself, USA is dark red from the effects of corporate bribes (it's just that those on both ends know how to cover it up better)
If game theory really backs this up then do it on a trial basis.
The U.S. govt is as corrupt as any country in Latin America or Africa, the U.S. just does a good job at not making it obvious.
Please see follow up work on KB's proposal here: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2166221
The problem of corruption is often viewed as the cause of many evils in a society. The problem with such an approach is that, devising methods and policies to curb corruption becomes tough. Looking at corruption as an effect and working towards the real root cause behind the menace would give us pointers of how to deal with this problem. I take the ranking of Transparency International and use that as a base for a study to understand policy measures that would help in curbing corruption in the Indian context. All are invited to view the details:
http://randomvudatala.blogspot.in/2012/12/a-draft-for-anti-graft.html