Democratizing Corruption

by admin on October 22, 2009

Okay, you’ve all heard that there is corruption in Panama. Well, yes, there is. But you need to keep two things in mind. First, it is not as widespread as many people think. There are honest people working in government here. (I said “honest”; I didn’t say “efficient”).

Second, there is corruption everywhere, even in our home countries such as Canada and the US.  The difference between corruption in a place like the US and Panama is that in advanced, post-industrial countries like the US it goes under a different name, it’s legal, and it’s available only to a select few wealthy individuals and large corporations.

If your name is “Bank of America”, “Goldman Sachs” or “J.P. Morgan”, the government will spend trillions of taxpayer dollars to bail you out of a financial collapse you set in motion. And you don’t have to worry about the government regulating you to prevent another collapse, because …., well, you have people who will take care of that.

Such people are called “lobbyists”.  They don’t (usually) carry around paper bags full of cash. Instead, they write cheques to election campaigns. And if that doesn’t get what their corporate paymasters want, they will let their favourite congressman or legislative aide know that a highly paid job or directorship will be waiting for him should he lose the affections of his constituents at the next election. No need to be crude and mention a quid pro quo. That would be illegal, and anyway, he will understand what you mean without having it spelled out.

The best part is that it’s all totally legal!  Yes, you can peddle influence to get the government to do what you want, and you will never go to jail. The only constraint is that in the US (or Canada or Europe) you have to play in the Big Leagues to benefit from this kind of corruption.

In Panama, on the other hand, corruption is more democratic. You don’t have to spend millions on expensive lobbyists and fancy offices in Washington. Here, anyone can give a traffic cop ten dollars to avoid a fine, or pay a government employee something under the table to speed up a decision that has been taking too long. 

I’m not saying there isn’t any Big Ticket corruption in Panama. If you want a favour from someone like Balbina Hererra, the former PRD presidential candidate and minister of MIVI, it could run into seven figures (just ask David Murcia).  But in Panama bribery is more of an equal opportunity business. Even poor people can find a few dollars to grease the wheels in a government office.

It is at least arguable that the kind of generally small scale and widely acknowledged corruption one finds in places like Panama is preferable to the large scale, yet invisible and hidden corruption that is pervasive in rich countries like the US.  

Here in Panama everyone has a fair shot at buying favourable decisions from government officials, while in rich countries like the US only the wealthiest and most powerful are allowed that privilege. 

At least in Panama, we understand that something is wrong and needs to be fixed. Sadly, in richer countries like the US, many people have not recognized the problem.  To the extent that they are aware of it at all, they tend to think that corporate influence peddling is just part of the democratic process.

Some people will argue that influence peddling of this sort is protected by the First Amendment guarantee of freedom of speech.  Such people are called “lobbyists.”

Allen

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{ 1 comment… read it below or add one }

Dean May 27, 2010 at 5:43 am

You never know what you have until its gone.
Come to Australia where if you get a fine for speeding 13 km over the limit you cop a $200.00 fine. i wish i could pay even $20 then drive away. Be happy with what you have i say!!!

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