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August 08, 2005

Fighting corruption: a series

Paul Onapa of Transparency International Uganda wants more focus on the supply of bribes - the private sector. No complaints here, but fans of Robert Klitgaard may recall his famous formula for corruption:

Corruption = monopoly - accountability + discretion

In other words, corruption really starts when you give a bureaucrat power over people and don't check on what he does with it.

Private companies, competing with each other, will struggle to resist the temptation to pay bribes unless given an incentive to do so. Rich countries can provide that incentive: Titan corporation of California had to pay nearly $30m in civil and criminal penalties after admitting bribery in Benin.

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