I have a healthy respect for the vibrancy and versatility of the corruption economy, and its ability to exhibit all the diversity that human behaviour is capable of. In fact, the rent-seeking market is a Chicago economists' dream, and is a fertile ground for observing how humans respond to incentives, and how human behaviour also distorts the incentive structure. There was this interesting discussion I had with a friend about a few individuals whose are generally reputed to be fairly strict, though behind this facade lies an interesting paradox.
A carefully cultivated image of being strict and firm can be a valuable asset in enhancing your market value in the corruption market. A considerable portion of rental value of any official can be attributed to the ease or difficulty in accessing the individual. An easily accessible official in the corruption market loses this additional value that can be potentially generated. By putting a premium on access, agents in this market can substantially mark up their rental values.
Assume Mr Strict, with a forbidding reputation, working as a Vigilance Officer (VO) in the Prevention of Corruption Department. Assume also Mr Corrupt, with a licentiously liberal reputation, working as another VO in the same Department. For the same transaction, Mr Strict earns many times more than what Mr Liberal commands.
This dimension has been brought out in previous posts and again underlines the importance of the rational economic agent in the corruption market. A typical rent-seeking agent, by being indiscriminate in his transactions, ends up frittering away a substantial portion of his rental value.
3 comments:
Your posts on corruption has made me think and soon i'd be posting on my experiences of having observed corrupt practises in the defence.
Will keep you posted!
Chanced upon your blog after getting directions from footnotz ..... Very impressive I should say. I especially liked the ones on your comparision with China, Nimitz and the Walmart post.
Keep writing.
1. "My years as Vigilance Commissioner of Andhra Pradesh" is a report by just-retired Vigilance Commissioner of Andhra Pradesh, Shri Ramachandra Samal, that talks in detail about how the administration in the State is caught in the vortex of corruption, favouritism, incompetence and mal-administration.
Do read the report at www.karmayog.org/redirect/strred.asp?docId=10075
2. Anti-Corruption: Vigilance Manual prepared in AP
C R Kamalnathan, Vigilance Commissioner of Andhra Pradesh, has tried to correct the weakness in the system with a four-volume Vigilance Manual.
Volume-I serves as a reference book for investigating agencies and others.
Volume-II provides all the relevant government orders and circulars as also the forms.
Volume-III is a digest of case law containing 551 judicial decisions- 356 of the Supreme Court, 141 of the High Courts and 54 of the Central Administrative Tribunal.
Finally, Volume-IV contains the texts of Various Acts and Rules.
[Can someone please send us a copy? Thanks. Vinay. www.karmayog.org ]
PS: Do Read how other countries have tackled corruption -- at www.karmayog.org/anticorruption/
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