Reforming an African electricity company requires tough love, persistence -- and a little luck. Just ask Jean-David Bile, a civil engineer in the central African country of Cameroon. Bile runs AES Corp.'s electricity operation in Cameroon, a national grid that is chiefly powered by two large dams and was formerly fully owned by the infamously corrupt government of Cameroon.
Joel Waldfogel writes in Slate about the new NBER working paper: Does Corruption Produce Unsafe Drivers? - and it has caused lots of discussion.
Empirical results show that governance plays a significant role in private investment decisions. This result is particularly true in the case of "administrative quality" in the form of control of corruption, bureaucratic quality, investment-friendly profile of administration, and law and order, as well as for "political stability." Evidence in favor of "public accountability" seems, however, less robust.
Ugo Panizza and Monica Yanez ask why Latin Americans are so unhappy about pro-market reforms. Theory #1:
What matters is the difference between expectations and actual outcome. Policymakers may have made the mistake of overselling the reforms by promising too much, and the disillusionment with reforms documented in this paper could be due to unmet expectations.
Fighting corruption with a multidimensional approach is picking up more speed. At a recent conference in Hong Kong, sponsored by the Independent Commission Against Corruption, the gathering challenged some of the common notions of measuring corruption, focused on evidenced based policy, and looked at the roles that the private sector can and needs to play to reduce corruption. Some 400 business and policy leaders from around the world recognized that closer engagement with associations of businesses, including small and medium-scale entr
What is the link between culture and corruption? Raymond Fisman and Edward Miguel looked at the parking violations of UN diplomats in New York City, the size of UN missions and the ranking of countries in TI's Corruption Perceptions Index. Their conclusion, which many will no doubt take issue with, is that:
A certain amount of corruption is grounded in culture and immune to carrots and sticks.