BRIBING, TIPPING: A LETTER TO THE ECONOMIST (May 11, 2011)
Bribery is a big problem across the globe. Corrupt officials demand bribes even for things that are legally due to people, such as birth or marriage certificates. In most legal systems, both bribe-givers and takers are guilty of the crime. As you report, Kaushik Basu, the chief economic adviser to India’s finance ministry, argues for legalizing bribes that do not pay officials to bend the rules (“Who to Punish,” May 7, 2011). This has raised quite a bit of controversy in India. I wholeheartedly agree with him, but I would take his proposal a step farther. To begin with, let us call payments for legal services “tips” rather than “bribes.” How about setting up tip auctions for officials, though? A person who wants something legally due to him or her would offer the maximum tip acceptable and let the officials bid it down. The most eager official would thus receive the smallest tip acceptable to him or her for the legal service in question. And everyone would be happy ever after.