BRIBERY AND CAPITALISM: A LETTER TO THE ECONOMIST (November 5, 2011)

It is interesting to read your article about a new index of bribery worldwide provided by Transparency International (“Supply Side,” November 5, 2011). In particular, the index reveals that graft involves two parties, quite often companies from the rich world and governments from the poor world. It also reveals little progress in curbing the problem. As you point out, “construction and industries involving government contracts, unsurprisingly, are the dirtiest.” By itself, this is hardly surprising, indeed. Large amounts of money invested in one place over short periods of time have always invited graft. The surprising bit is that so much of bribery remains undetected on either side. On the average, about a half of every investment project involves construction. Such projects are easy enough to spot. Following project managers on the two sides of major investment projects would be sufficient to pin all the guilty parties down. How come that neither companies from the rich world nor governments from the poor world are successful in thwarting funny business? Is it not reasonable to assume that bribery is an inevitable and even cherished part of investment and the associated construction activity under capitalism?