Friday, May 23, 2014

Corruption is a social evil ; Six strategies to fight corruption

Thanks a lot for this insightful piece on combating the malignant social and economic malfunction called corruption
Broadly, there are three policy proposals on curbing corruption: lawyers approach, the businessman’s approach and the economists approach. These consist respectively in producing tougher new laws, tougher enforcement of existing laws and increasing the level of competition in the economy, both among firms and bureaucrats.
Singapore and Hong Kong are some of the least corrupt countries on the world are successful applications of lawyers approach – they have draconian laws on corruption; they also pay their bureaucrats exceptionally well but the level of political competition on this e countries is extremely low; this has allowed exception level of pay in the bureaucracy without too much political completion.

I will borrow example from one country in East Africa-Kenya; this is my country of birth.
The Kenya Civil service is among the highly paid; this was strategic to attract and retain and high performing from the private sector’s ; it started with an elite Dream Team crafted by the former president in late 90s to turn around the Kenyan economy; vision 2030 secretariat and et al.
Yes, the work by Rijckeghem and Weder (2001) that there is an inverse relationship between the level of public sector wages and the incidence of corruption may be partially correct; it ignores the rent seeking nature of the economic man and the politics of the country which are central to award of civil service jobs.; what about the level of civil liberties?
The Kenyan MP is paid over $10,000per month excluding various unwarranted allowances like sitting allowance (being paid to be in parliament), yet they still misuse constituency development funds, solicit bribes to support either private or public members bill , refuse to pay for child support?
Thus the questions is how much of the clean record if any in Kenya/LDC can be attributed to the policy of high wages?

The red tape of bureaucracy is not a choice of large institutions but product of the desire to systemize processes which should/must outlive the officeholders/owners; and that’s why  it’s easy for a small outlet in downtown street to complete an order for emergency backup generator that for GE( Kenya) to fix a rundown backup generator
Government are the highest rent seeking entity in the economy; they extract income through these bureaucracies; they also create employment otherwise every government unit/ department should be run as a business unit able to finance its operations.
I agree these needless regulations need to be removed but are the leaders ready to pay the political price?  And as such instead of dismantling these bureaucracies they create more efficient  ‘political outfits  ie centers of excellence like Huduma Centre in Kenya; constitutionalize various commission and authorities , merge moribund parastatals rather that privatize them et al
Thus there’s a a correlation between the nature Governance of a country and level of red tape.

Corruption is a social evil with immediate economic effects but long-term damage on moral fabric of the humanity; it eats into the family values where ones worth is measured by the size of the wallet.
It emanates from the Id- the instinctive nature of the being, the self, the selfish, the animal desire to fulfill immediate aggressions which matures into fully grow untamed ego.
It’s also fueled by the capitalism which advocates completion, privatization and wealth accumulation.

To address corruptions we need a bottom up approach

1.      Disband Anti-corruption agency- this agency serves the master.
2.      Set up a Whistle blowing agency whose sole mandate is educate the citizenry on corruption
3.      Make corruption a subject/ topic in basic education.
4.      Personalize corruption; carry out national wide HIV like campaign and sensationalize and sensitive citizens on evils/benefits of corruption.
5.      Set an alternative form of Social justice dedicated to corruption like the Rwanda’s Gecaca system.