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Submitted by Anonymous on

Yes, there are some who believe that a little corruption is not bad, akin to the "cost of doing business" as you point out. Myrdal talked about "speed money", paid to facilitate otherwise cumbersome transactions, by people who value their time and, for instance, do not want to wait in line to satisfy some bureaucratic requirement. He pointed out, however, that the problem with this argument is that once this system is entrenched, processes will be deliberately slowed down unless a bribe is paid ex-ante. So, something that was initially paid willingly by the user, to accelerate some paperwork/process, becomes part of the corrupt machinery of the state, which cannot function in the absence of bribes. I agree with you that if we could address the issue of corruption more effectively, the context for implementing sound economic policies would brighten in a big way. In a future blog I will take up the issue of what we can do about corruption. Augusto