Combating corruption.

• Author: Klitgaard, Robert
• Position: Includes related article on anti-corruption strategy

Corruption is hardly a problem that is exclusive to the third world. True, in Venezuela a local dictionary of corruption has been published in two volumes. But it is also true that a French author, apparently independently, had the same idea for France. Probably every country could publish a similar volume. The fact that much third world corruption has important first world participation is also now a commonplace. The international nongovernmental organization Transparency International focuses on corruption in "international business transactions" and points out that there are first world givers of many third world bribes. In coming years, the World Trade Organization will find this issue a central one. The reminder that corruption exists everywhere, in private as well as public sectors, in rich countries and poor, is salutary, because it helps us avoid unhelpful and untrue stereotypes. But to contextualize the discussion in this way is not to end it.

In fact, noting that corruption is widespread may convey its own unhelpful subliminal messages. It may suggest, for example, that all forms and instances of corruption are equally harmful. Even more perniciously, it may lead lazy listeners to the conclusion that because corruption exists in every country, nothing can be done about it here. Saying "it's not only our problem and it's not all our fault" may sidetrack more useful discussions on how to do better. Consider the analogy of pollution or disease. Both exist everywhere on the planet. But the extent and patterns of the problems differ radically. Questions of how much and what kind are crucial, and so they are with regard to corruption. No one would conclude, for example, that because water pollution and AIDS exist in every country that nothing can or should be done to reduce them.

Corruption is a term of many meanings and, indeed, the beginning of wisdom on the issue is to subdivide and unpack the vast concept. At the broadest level, corruption is the misuse of office for unofficial ends. The catalogue of corrupt acts includes bribery, extortion, influence-peddling, nepotism, fraud, speed money, embezzlement and more. Although we tend to think of corruption as a sin of government, of course, it also exists in the private sector. Indeed, the private sector is involved in most government corruption.

Different varieties of corruption are not equally harmful. Corruption that undercuts the rules of the game - for example, the justice system or property rights or banking and credit - devastates economic and political development. Corruption that lets polluters foul rivers or hospitals extort patients can be...