The Economist wrote an interesting article about corruption where it discussed the problematics of corrupion and why does it exist. The answer is simple. The chances of being cought are small while the temptation of bribery is too high as benefits are so great. According to "When in Rome act like a Roman" argument, bribery is the price the you have to pay to enter the world's most difficult markets. Bribery can also speed up the bureaucratic procedures. On the other hand, tackling corruption can make your way a bit more difficult as in the case of IKEA when the company entered the Russian market and decided to fire managers who were paying bribes to local officials. Ethics is the only weapon that can overtake the corruption.
Ethical principles are the ones that can make people, firms and govermnents change the why they deal with the situations. Moreover, in the US, the Department of Justice is prosecuting far more cases than ever before. In 2001, only eight cases were prosecuted. Now there are 150 cases, which confirms that things are improving. As the likelihood of being cought is dramatically higher than few years ago, firms are not taking on more risk that before. That is why not so many firms tend to do their work in the corrupt way. Internet as well makes it easier to control firms' activities. Thus, it is easier to reach the information. There is still a lot to be done with the help of a watchful eye.
McCloskey on Comparative Advantage
15 hours ago