When the U.S. passed a law in 1977 called the Foreign Corrupt Practices Act, many American companies were not happy. The act made it punishable for American companies to bribe foreign officials. In contrast, many European countries allowed their companies to write off these payments when paying taxes. Rightly or wrongly, American companies complained that this would put them at an unfair disadvantage when competing abroad.
Esther Duflo has an interesting take on the appropriateness of aid that may fall into corrupt hands on the Managing Globalization blog:
You may want to grab your surfboard to be prepared even though this wave may not yet be visible now. There is little (public) focus on this question in Asia at the moment and I suspect that the reason is simple – over the past ten years we have witnessed a relatively long period of stability and rapid economic growth across Asia. Such a situation can too easily breed complacency and high levels of risk-taking by banks, as well as a mo
It has been a long time since I’ve written, but the past two months have been quite hectic for us! I just returned from China, where we were working with the capital market supervisor, and the issue of the financial sector regulatory architecture, or how market supervisors should be organized, was a topic of discussion. In early June, there was a conference with all of the key financial supervisors on the topic of integrated re