Tuesday, September 11, 2012

The Cost of Doing Business

Motivated by an unsavory encounter today I would like to briefly talk about bribery and corruption.  It should come as no surprise that all governments struggle with the inefficencies created by the abuse of political influence.  Some companies, individuals, and other interests search for every avenue to achieve their desired ends.  Often, those avenues come at the expense of the public itself.  For example, a mining company who wishes to aquire mineral rites may agree to provide kickbacks to those with the means to provide those rites.  In this example, local opposition is steamrolled by the allure of quick and abundant cash. 

According to Transparency International, the respected advocate of fair and open governance, roughly "US $20 to $40 billion are received annually by officials in developing and transition countries".  But don't get thrown off by the sheer enormity of the sum.  For most, corruption is seen in micro, not macro.  An example of this may be something as small as US $2 to $5 to help "expidite" business or "avoid" a fine.  Yet, for those with nothing, these small sums are even unattainable. 

Madagascar, a country that one and a half years has taught me to love, is sorely in need of greater political transperancy.  Only when that transperancy comes will Madagascar begin to fulfill its obligation to all its citizens.

For more information from Transperancy Internationals 2011 Report, click here 

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