Tuesday, June 19, 2007

Regulating Corruption

Not all of you were thrilled with my post on corruption in China, where I essentially asserted that corruption IS the market in many places, and businesses and investors would do well to consider it that way. I think corruption may be one of those lightning rod topics where folks' worldview drives a given conclusion. So I am not all that hopeful that skeptics can be swung round. But I was intrigued by an editorial on the subject that I saw in The Moscow Times today (some of you have asked, so here's the link to a soft re-print of the editorial).

The author's gist is that corruption in Russia's Government runs deep, but the leadership has started down a praiseworthy path to address it. That is, the Government has sought to reduce the effects (net cost to the Government's customers) of corruption by consolidating the services whose bureaucrats command corrupt payments. The thought seems to be that a single mafioso pyramid-like power structure is less expensive to the customer than would be a disparate collection of uncoordinated corrupt forces. According to testimony the author cites, businessmen are confirming that the Government's consolidation efforts in this area will indeed be useful.

Somehow the consolidation is a part of President Putin's "dictatorship of law" (think "rule of law" with a Russian flair?). Of course, the Russian leadership's motives and means are not seen as pure, and the author cites the Government's own interference and apparent corruption in the huge Yukos saga. But the author appears philosophical and pragmatic about these dichotomous aspects of the Government's focus on corruption. As I see it, the conclusion appears to be that official corruption IS the market in Russia, and the solutions to corruption-qua-problem should be constructed to be effective within the cultural history and operation of that market. Incremental change in the right direction is a good thing.

I am sure a saner mind could make more sense out of this confused editorial - draw something that is philosophically purer when it comes to eradicating corruption. I just wouldn't want to be in Moscow with the owner of that mind.

8 comments:

Ogle said...

nice one, i wonder f you can write something about Africa!

Anonymous said...

Thanks for sharing this link, but argg it seems to be down... Does anybody have a mirror or another source? Please answer to my post if you do!

I would appreciate if someone here at justthinkblog.blogspot.com could post it.

Thanks,
Jack

Anonymous said...

Hi,

This is a inquiry for the webmaster/admin here at justthinkblog.blogspot.com.

Can I use part of the information from your post right above if I provide a link back to your site?

Thanks,
John

Anonymous said...

Sure John, link to this one if you like. Let me know where you put it, so I can see. Thanks!

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