Dimensions Of Bribery

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Bribery is defined as "the offering, promising or giving something in order to influence a public official in the execution of his/her official duties" (OECD Observer, 2000). Bribes can take the form of money, other pecuniary advantages, such as scholarship for a child's college education, or non-pecuniary benefits, such as favorable publicity. In the international context, bribery involves a business firm from country A that offering financial or non-financial inducements to officials of country B to obtain a commercial benefit. The non-profit organization produces annually its survey of countries ranked on the basisof how corrupt they are perceived to be. Known as the Corruption Perceptions Index (CPI), it is based on "the misuse of public…show more content…
The focus of this paper is on bribery, which is a major form of corruption.
The enormous growth in international trade and investment over the past fifty years has been accompanied by an increase in bribery. The newspapers regularly report bribery scandals inthe conduct of international business (e.g., Crawford, 2008). The World Bank estimated that five per cent of the exports to developing countries go to corrupt officials (Moss, 1997). If bribery is a burden to
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These annual figures provide beth asnapshot and a trend line of the quality of governance in individual countries and on acomparative basis (Kaufmann, Kraay, and Mastruzzi, 2006). Non-governmental organizations such as Transparency International, through their annual rankings of perceived corruption amongcountries, spotlight this subject.Many businesses and industry groups have become conscious of their ethical conduct and the need to comply with the emerging web of laws. Consequently, they have created codes of conduct for their employees. Private trade associations such as the Business and Industry
Advisory Committee to the OECD and the International Chamber of Commerce have developedanti-bribery programs (Yannaca-Small, 1995). Thus, there have been worldwide efforts to address both the demand for and supply of bribes.Three strands of literature are reviewed here. They are (a) determinants of bribery and (b)determinants of economic growth. The World Bank has developed a simple formula to describe bribery: C = M + D-A-S where C standards for corruption, M for monopoly, D for discretion, Afor accountability, and S for salary. The formula indicates that bribery tends to be high insocieties where public officials earn low salaries but have a lot of discretion and limited accountability. Highly regulated economies create conditions for corruption to thrive. Businesses

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