November 24, 2005

Corruption Measured

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Here is a hot button for me, corruption. This time there was a very interesting report of a courruption study publshed by La Razon.

The report says that the level of bribes in Bolivia is roughly equal to half the budget deficit, 25% of government investment, 5% of exports, and about half of what Bolivia owes to the IMF. The study measures the cost of corruption to Bolivian households. Furthermore, the average Bolivian spent around Bs$400 (US$50) a year.

However, what the report forgets to mention is that the cost to Bolivian households represented by these quoted amounts, represent at the same time income for some of the same households and by virtue of taxes, is also income for the government. How's that!