Friday, May 2, 2008

Corruption, Windows of Opportunities, and your own principles.

Becoming Corrupt

Have you ever wondered how someone makes that transition from one day being innocent, ethical, and principled to taking that first step towards corruption? What is it that makes someone to make a choice to forego ethics and embrace the practice of corruption? Is it money? Is it power? Is it down to individual values and principles, or are we all inherently corruptible and will engage in such activities as long as a window of opportunity arise and the chances to get caught and punished is minimal? What is it within the human condition that really drives corruption?

There are economic explanations to corruption, explaining it through rents and rent seeking behaviour (see here), and there are humanistic explanations of corruption, arguing that human greed drives corruption - greed for power, greed for status, greed for money. But I'm more interested in the introspective notion of corruption and corrupt behaviour and in what condition do we find ourselves in an opportune situation to engage in corruption - and whether controls for corrupt behaviour comes within or from an external source.

So here's a question, and a poll which I will add in the side bar to try and illustrate our inherent nature when it comes to corruption and I hope we all can participate. As this poll is COMPLETELY anonymous and therefore removes any potential response bias of socially desirable answers (i.e. giving an answer you deem that society will approve even though you may not believe in it because they know your answers), I hope to get everyone to do some soul searching and come up with your own answer - for which ONLY you will know of.

So here it is - the scenario:

There's a project tender worth $5 million and you know that there are alot of interest parties for this project.

As the tenderer, you can ensure your acquisition of this project by paying a bribe (say $200,000.00 - you can come up with any figures of your own) to the official in charge, will you pay this amount?

As the project tender committee, if you were offered a bribe ($200,000.00 or larger amounts), will you accept the bribe?

NOTE: These scenarios assume you WILL NOT get caught. And by the way, this is a hypothetical situation and in no way am I implying this is a true situation.

There are many additional scenarios we can play out, but what I really want to see is what our decision will be. I hope that everyone can have a long think about the issue and click on the poll as truthfully as you can so we can see how the responses come out. I'm sure we will be surprised by the outcome, one way or the other.


4 comments:

ROGUE ECONOMIST said...

I don't think I will need to do any 'soul searching' to come up with my answer. A corruption is a corruption (regardless of the opportunity, temptation or even needs) and is a crime in this life and in the hereafter.

And I also don't think the decision to pay the monetary corruption is an easy one to make. Because anyone (who is thinking of paying) will be crazy to not to think that others will also be paying the same or even a higher amount.. a simple Prisoner's Dilemma's game theory: where 2 bidders pursuing their own self-interest (in this case both pay corruption money) will only end up being worse off.

As for the person who decides to accept the bribe, then God SAVE his Soul!

Nevertheless, corruption comes in many form. Croynism and nepotism are also branches of corruption. If I remember correctly, I once read a book by Syed Hussein Alatas in which he gave an example of corruption in Brunei -in the form of golf games.

Golf games, air tickets, gifts etc. sadly in Brunei have become the norm to some people/departments.

goldendurian said...

If we assume there are two types of people in this world: "fair" and "selfish", where a "fair" person takes the externalities onto others of his actions into account, and a "selfish" person is your standard rational payoff-maximizing agent then by setting the probability of getting caught in both scenarios to zero, these questions are useful in determining the distribution of social preferences in a heterogenous population - but only in a static, one-shot game. It shouldn't be a surprise to find that in a dynamic setting, where past actions and future outcomes matter, revealed preferences would be different. Although the question is framed in a way that is unbiased, the choices may still be biased depending on whether people frame it as a static or dynamic game in their heads. While the answers that come from a static game are interesting, how well would they depict real life?

Also, it would be interesting to see the distribution of these social preferences across income groups. For example, is the propensity to take/give a bribe constant across all income groups? Are there more "fair" or "selfish" people for those on high incomes? Our preferences are shaped by our reference point. Would you expect the behavior of those who have nothing to lose to be the same as those who have so much to lose? Are those on low-incomes more likely to be bribe-takers (having nothing to lose) and those on high incomes bribe-givers?

If corruption is the name of the game, then why should anyone else act differently? People will behave according to the norms of society. In the context of a prisoners dilemma mentioned by the previous commenter, (corrupt,corrupt) is the standard Nash equilibrium outcome. While the (no corrupt, no corrupt) outcome would lead to the higher payoff for both players, it is still the rational thing to do, given that he knows that the other player will play 'corrupt'. What needs to be done is to impose additional costs to play corrupt, in the form of increased transparency, higher penalties, etc. Once the players internalize this additional cost into their payoff functions, then the standard equilibrium outcome will change.

Al-Qadr said...

Extraordinary Poll Result you got there, Mr Red! Care to elaborate on your findings based on the result? What it tells me is that no matter how strong and firm His Majesty the Sultan as the Prime Minister, Defence Minister and Finance Minister of Brunei Darussalam spoke against the evils of corruption during the New Year's Day 2008 Titah or was it during this year's Legislative Council Opening (can't remember which is which...), people still get thrills out of kick-backs and back-kicks or kung fu kicks since time immemorial and till death do you part with corrupt lifestyles:(

Al-Qadr said...

Yesiree... it was on New Year's Day alright. So just as a reminder:
"HM urges Bruneians to help stamp out corruption to progress

Waleed PD Mahdini
BANDAR SERI BEGAWAN
Tuesday, January 1, 2008

IN THE titah heralding the new year of 2008, His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah, the Sultan and Yang Di-Pertuan of Brunei Darussalam zeroed in on the disruptive and destructive social vice of corruption not only for people but also for a country.

"For 2008, let us all resolve for it to truly be a 'Happy Year', a peaceful and prosperous year similar to all those preceeding years," His Majesty began his new year titah with, that was broadcast live nationwide last night over television and radio.

"We will build this 'Happy Year' with knowledge and hard work, and not with complacency," the monarch urged, "colouring them with beneficial programmes and not useless ones," he warned.

"We have to be pro-active in planning for our development, to progress instead of regressing," the monarch advised.

The monarch urged the nation to put its thoughts and efforts together to "produce whatever needs to be produced, improve what needs to be improved and enhance whatever needs to be enhanced."

As Brunei progresses, just like everyone else, by utilising the resources and mechanisms it has, what makes this progress special and extraordinary "is when we place it successfully on the proper foundations, by protecting it from contamination by negative or deceitful human behaviour," His Majesty pointed out.

Every country and people in the world are busy developing, but why do social diseases and poverty still threaten them, the monarch mused.

"It is obvious that there are faults and root causes.

In my opinion, one of the causes is corruption," His Majesty highlighted.

With corruption, all processes and mechanisms are weakened and unbalanced affecting all progress.

"It should serve as a warning to us not to tolerate corruption at all for no matter how big or small it is, it can adversely affect the country," said His Majesty

The monarch further emphasised that "we all firmly close the door shut against corruption," reminding the nation that, "Whenever we are clean from corruption, Allah will surely bless us and our country, as Allah has directed us to battle corruption, to the point that whoever gives or receives it, that person will be condemned to hell."

His Majesty then focused on the civil service reminding them that they are entrusted with the responsibility of ensuring that this vision is achieved.

"They must demonstrate by example that they are managers and administrators who are completely free of corruption. Only if they are clean, will the government be free from it."

His Majesty then called for real, pragmatic and ready strategies to take all these into account, and not just a paper tiger that is flawed whenever it is needed.

"Brunei Darussalam is not yet trapped by it," the monarch expressed confidently.

"Apart from preparing ourselves, relations with international organisations must also be strengthened, with which to shore up cooperative relations in supporting the search for economic opportunities and in promoting our products abroad, especially to the Bimp-Eaga region," His Majesty explained.

The Brunei Times"

Last year's BT story on corruption best echoed the sentiments of your pollsters, probably, Mr Red:

"When it comes to corruption, Bruneians go into silent mode
Muhammad Ali Mu'izz
BANDAR SERI BEGAWAN

Wednesday, April 11, 2007

BRUNEIANS welcome the government's renewed anti-graft campaign, calling corruption both a sin and immoral act, but are wary to speak about the subject.

"It's a sensitive issue," said an experienced business man, 57.

When asked if she or anyone had been asked to offer bribes, a female government official said here, "Isn't that too sensitive? I don't think you should ask that question."

Acting Director of the Anti-Corruption Bureau Pg Kasmirhan Pg Tahir reaffirmed on Monday the body's intention to fight corruption in the sultanate, especially within the civil service. Pg Kasmirhan promised action against those caught committing graft regardless of status or rank of the perpetrators.

"This is needed to send the message that corruption is a disgusting act and is despised by society and the law will deal with it firmly,'Without Fear or Favour'," he had said.

The Brunei Times spoke randomly to a number of Bruneians about their experience regarding corruption, such as bribes. A total of 16 people that The Brunei Times approached, refused to comment, all saying the topic was too sensitive to talk about. Some others were willing to speak up, anonymously.

"I don't know anyone who has ever been involved in any corruption activities," said Khairol, 27. "It'll be hard to find anyone that admits to it." However, he said he believed corruption in the country is more widespread than people think.

"It's a sensitive issue but I can't say I've ever been involved with corruption," said a government worker in his forties who asked not to be named. "I've known friends who have involved themselves in bribes." However, he refused to delve deeper into the details.

One Bruneian said, "It's an immoral activity, but I have to say that many people consider morals and money a small price to pay for certain privileges." He also refused to go into specifics.

"Once, I was offered a choice between paying a big fine or a small bribe," a 38-year-old man said, admitting that he eventually agreed to pay the bribe. "Though it still bothers me that I did something illegal, at the time it was a no-brainer of a choice," he added.

"It's a major offence, against both state and religious laws," said 19-year-old girl, Nadia Daud. "Although it's tempting, it depends on the individual to accept or not."

"Continuous presence of bribery here will negatively affect the social and economic stability of the nation, " said another girl of 18 years of age.

Yet another girl, Nur Azrenna Hj Amit, 19, said, "Some people want something so badly they are willing to try to sway the law with material goods."

"Bribery is a sin. It's committing a crime against religion," said Abdul Hafiz bin Abdul Razak, a 20-year-old 'A' level graduate.

He added that practising bribery can bring dangerous consequences. "For example, important organisations will become corrupt. Bribes also endanger people's livelihoods as well as taint the good name of the country."

"Corruption is bad because even if it involves a small (amount of money), it affects a large number of people, a deal made between a few people can lead to problems for an entire nation," said Nina, 23.

Mizah, 33, concurred, "Corruption can ruin the image of a country while affecting the public negatively. The authorities and the community should cooperate in curbing this problem to make the country more peaceful."

The writer is a freelance reporter
The Brunei Times"

Kudos to 'legal-eagle' and 'hawk-eyed' hacker-extraordinaire ACB Head-honcho IF (a big IF) he could swoop down on all graft givers and takers! I would personally firmly recommend him to His Majesty to be promoted to become the country's new Attorney-General (huh?!) Who am I to write such a thing - duhh!

Baibun Ngian - jangan marah ah:)