Rules of the road; Corruption.(briberies)

Economist (US), The, May, 2007

See? Clean hands

At least law-breaking officials respect the laws of economics

IN MANY parts of the world, greasing the palms of corrupt officials is a fact of life. For lorry drivers in poor countries, for example, it can be even more commonplace than paying tolls or taxes. The extortionists are often armed police or soldiers, manning roadblocks, who make little attempt to pretend what they do is legal. Yet, although such people may operate outside the law of the land, they do obey the law of supply and demand.

That, at least, is the finding of a recent study* of illicit transactions in Indonesia. In a rare attempt at documenting bribery, it shows how crooked officials act as independent monopolists, maximising their profits and employing...

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