Government Corruption Around the World PDF Print E-mail
Written by Richard M. Ebeling   
Wednesday, 28 May 2008 04:40

Around the world political corruption is considered one of the most serious problems in society. In its most recent report on global bribery, the Berlin-based organization, Transparency International, found that the demand for bribes by government officials occurs everywhere, but the highest rates of bribery are in Africa, the Newly Independent States (Russia, Ukraine, Moldova) Asia-Pacific, and Latin America.

The levels of bribery in different regions are summarized in Table 1 below.

Curruption by Region

What people most frequently pay bribes for is shown in Table 2. The same surveys by Transparency International show that, globally, the greatest amount of corruption involves paying off the police. Second place is held by the judiciary, followed by bribes for business licenses and permits. Government education and health care are also found to be riddled with corruption, as are the legal systems in general and the tax authorities.

Corruption by Type

What the survey data shows, however, is that the degree of bribery in each of these categories varies by global region. For example, the bribing of police was most frequent everywhere, but differed in the following ways: Africa (47 percent); Newly Independent States (34 percent); Asia-Pacific (33 percent); Latin America (23 percent); South East Europe (20 percent); European Union (3 percent); and North America (2 percent).

Africa also had the highest reported rate of judicial bribery (24 percent), with Asia-Pacific coming in second with 23 percent, followed by Latin America (7 percent). In both North America and the European Union, 2-3 percent of the respondents admitted bribing someone in the judicial system.

In Africa, 22 percent of those surveyed said they had paid bribes for business licenses and permits. In Asia-Pacific, about 17 percent said they had done so, the number being about 7 percent in the countries surveyed in Latin America. In North America and the European Union, this type of bribery was admitted by, again, 2-3 percent of the respondents.

Which institutions do people around the world view as most corrupt? Nearly 70 percent of those surveyed said political parties. Parliaments and legislatures came in second with 55 percent of people giving this answer. The police are viewed as a close third with 52 percent. Over 45 percent consider the judiciary as corrupt, followed by the tax authorities (45 percent); the media (42 percent) medical services (34 percent); government licensing and business permit agencies (33 percent); the military (32 percent) religious organizations (30 percent); and non-governmental organizations in general (28 percent).

Finally, what lies ahead? Transparency International found about 54 percent of all respondents expect corruption to increase in the years ahead. Only 20 thought it might become less, while 26 percent anticipate it will remain about the same. Not a very promising future for the world.

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Comments (5)
Financial Support of Congresspersons
5 Thursday, 26 June 2008 15:33
James C. Watkins
In considering the extent and even definition of corruption, it is difficult to categorize extensive financial contributions to the members of the U.S.Congress. However, in view of the massive support of the tort lawyers and the NEA, and their effect on legislation which affects almost every person in the country in one way or another, I wonder if this sort of thing was part of the 2 to 3% of corruption covered in the survey.
Bride/Tax... whatever
4 Monday, 16 June 2008 12:52
???
IF you were to equate the bribe as a percent of the subject transaction and equate it to the tax associated with the same transaction in a low-bribe country would they be similar?
Perhaps efficientc corruption is a synonym for mature tax code at the local/State/Federal level?
Efficient Corruption
3 Wednesday, 28 May 2008 15:04
Kenneth D'Amica
Mancur,
Personally, I find the idea of efficient corruption highly suspect. For instance, if a manufacturer bribes officials to get around environmental regulations, he would be able to produce more goods at better prices, which would be efficient by measure of output alone, but not when health and environmental issues are included. This kind of scenario can be observed in China, where local officials are rewarded by the central government based on their regions' GDP growth, which provides incentive to bypass health and safety laws.

In addition, corruption adds uncertainty to entrepreneurial activity, discouraging it, and thereby stalling development.
thug capitalism
2 Wednesday, 28 May 2008 13:19
Charles Murray
A piece in the 2 June Forbes discusses how hard it is to do business in some developing countries. One issue was whether the shakedowns were consistently applied. For example, the regional director of one company created a line item on the books for "ad hoc taxes." He never knew when an official would show up and how much they would want. If the graft was more predictable in timing and size, it could just be incorporated into firms' business models.
Stationary vs. Non-stationary Bandits
1 Wednesday, 28 May 2008 08:54
???
There is a literature out there which suggests that the high levels of corruption in certain countries is efficient.

An interesting complementary idea is that from Bruce Bueno de Masquita - who does research on the size of ruling coalitions, and what different coalitions must do to keep a hold on power - in case readers want to consider this more in depth.

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