How To Battle Corruption

Nairalanders , can we look a little away from our social-political, economic problems for a while? And let's Use this medium to profer solutions to our problems in Nigeria,

I start by saying:

The problem:  Corruption is increasingly recognized as a preeminent problem in the developing world. Bribery, extortion, fraud, kickbacks, and collusion have resulted in retarded economies, predator elites, and political instability,

My proposed solution: In a country where every  politician is charge-sheeted, where bribery is the code name for getting any work done through bureaucracy, common people seem to no longer bother about such mundane issues.

If one reviews the data a little carefully, it is not difficult to note that the countries at the top of the list have one thing in common (irrespective of their demography). The least corrupt countries are economically more free, with a less intrusive government and much less regulations. Similarly, the countries that are the most corrupt also have something in common: They have a burgeoning government that endorses protectionist policies armed with tariffs, quotas, prohibitions and similar such evils.

To put it in very simple words, countries that have a free market policy are the least corrupt, whereas countries that are dependant on government are the most corrupt.

This then is the simple truth about corruption, though some people  will scoff at this idea.  They have not only placed the government to the ugly status of demigod, but also look up to the government for solutions of all social evils. The government is not the solution for corruption, but it is definitely the precursor of corruption.

The best example of how a market-driven economy weeds out corruption, compared to a government-dominated country, is the “Enron-UTI” saga. Enron, one of the wealthiest companies in the world, as well as its auditor (accounting giant Arthur Andersen), both went bankrupt as soon as the accounting scandal unfolded. The punishment for fraudulence was swift and lethal. In a market-driven economy, consumer confidence is the cornerstone of success, and once it is breached, it is an unpardonable offense.

The bureaucracy in Nigeria today is actually a sophisticated name for kleptocracy. These thick-skinned people not only take bribes shamelessly, but have also started considering such payments as their rightful earnings. A small example in this perspective--It takes approximately three to four months to secure a simple passport and if you want it fast you can get it if only after paying a hefty bribe, (not less than N15,000)! Instead of this government monopoly, if we had competitive agencies issuing passports, it would have taken at most a week to get a passport without paying any bribes!

Adam Smith in his famous book The Wealth of Nations had postulated the primary role of the government as providing security to the citizens against internal and foreign aggressions. But the current spate of defense corruption raises doubt whether the government is capable of performing this basic function satisfactorily or not!!

The policemen, municipal authorities and political dadas (supposed to provide protection to common people) extort a huge sum of money from vendors, rickshaw pullers, taxi drivers, etc. every year. The misery of these free agents of trade can be solved by not viewing them as a nuisance, but including them in the town planning.

Heard of the “trickle up approach”? The grants given by the World Bank and IMF are government-to-government transfers. The leakages in the system have transformed the economic principle of the “trickle down approach” to the “trickle up approach.” One famous economist aptly remarked about this: The aid given by the World Bank and the IMF passes from the poor people of the developed countries to the rich people of the underdeveloped countries!

Now if we accept that government is the main predecessor of corruption, there is a solution to the problem as well. Suppose there was no restriction on immigration. Any person can stay in any country he or she wishes. Rational people will prefer to stay in that country where the government is limited and efficient, taxes are lower, etc. Now suppose on the basis of these criteria, a lot of Nigerians move to other countries. The government will suddenly find itself bankrupt, as there are no people left to pay taxes.
This competition among the governments of different countries to attract people will not only help to weed out corruption, but will also foster a limited, efficient, stable government. If we can have competition among consumer durables, why can’t we have competition among governments? This might seem a very far-fetched idea, but it is not an impossible one.

Similar is the case for legalizing drugs and prostitution, which will not only bring an end to the unaccounted for, uncontrolled drug and women trafficking but will help to bring the problem under control.

Free society is of course not a perfect society. There will always be some murderers, rapists, and drug addicts in a free society. But the three pillars of liberty, property rights and free trade will not only help to curb corruption but also foster a sustainable and civil society.


 

@Ladapo


I fully agree with you about freeing up the economy. Government Administration has no business buying and selling goods and services. The main culprits here though, are the people themselves. They have grown so used to Subsidies and Government owned and sponsored industries that they are absolutely unwilling to change without a deadly fight.

I agree with you a little on the issue of legalising prostitution, but for drugs, there is only one type of drug that can be legalised in any country for now, and that is cannabis and care must be taken in doing it. You failed to mention gambling I think. Football gambling if legalised and well structured, can fetch Nigeria nothing less than $4 billion annually.


By the way, you do not put the question of legalising prostitution, drugs and gambling in open discussion because majority of the public would view it as offensive.


And how in God's name did you finish reading "The Nature And Sources Of The Wealth Of Nations"? I've been on it for weeks.

I must say here that corruption must be fought mainly among the everyday masses.

As we see people engaging in corruption, we must attack them with all passion because it is all these "masses" who kill, steal, destroy, vandalise, bribe, lie, deceive, pretend, connive and tamper scales that will become politicians in the shortest possible time.


Let's change our neighbours because sometimes if you listen to their ambitions of if given the opportunity, you'll realise they would do worse.

Change of orientation,people got to realise that what they don't finish today,they will tomorrow,corruption is like a boomerang,it comes back to the thrower.This is where fundamentalism comes in,people got to realise why they have the breath of life,that it is not for pulling apart but for pulling together,let's stop blaming the devil and demons for our ignorance and short-sightedness,of course,a curse is a generational ignorance and perpetual laziness,get of your black asses and make things right.

Public execution and recovery of every single kobo will go a long way to deter many people from engaging in it to begin with.