How to end Corruption. The headlines scream nowadays corruption. The seldom noticed fact is that every case so far chronicled involves payments by corporations to obtain contracts from governments(Like 2G scam). There have been no scandals about questionable payments between private enterprises. What the current rash of cases illustrates is that some government officials (who, after all, spend other people’s money) are tempted to use their position for personal gain, that private enterprises are tempted to accommodate them, and that those enterprises that resist the temptation may well lose profitable business. Let competition resolve the issue of corruption. Established businesses tend to be against competition and free markets because they threaten their established positions. They always try to get special dispensations from the government to give them subsidies and to protect them from competition. If the government allowed for competition, demolished the licensing system and applied an impartial rule of law that does not allow governments to give special privileges to any business, corruption would automatically reduce.Economic Freedom Index shows an inverse relationship between economic freedom and corruption:higher the economic freedom in a country, lesser the corruption.
Posted on: Tue, 28 Jan 2014 04:20:30 +0000