What effects on economic efficiency

What effects on economic efficiency

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Unformatted text preview: rite laws that remove tariffs or create tax loopholes Bribes, graft, wonga, bakhsheesh are usually illegal but lobbying networks of influence, guanxi, wasta, are usually legal They are not substitutes: Lobbying usually is sector- specific, bribes are firm- specific Lobbying (LOOK AT SLIDES) US Foreign Corrupt Practices Act: Bribery: Payment or service to another individual, organization or government agency to INFLUENCE the latter To obtain or retain a business arrangement illegal “Facilitation payment” made at the request of a foreign official in order to expedite ROUTINE GOVERNMENT ACTION not made to establish or renew a business arrangement but to speed up the process of implementing or carrying out a previously established business arrangement legal as long as lawful under the “written laws” of the foreign country Understanding “cronyism” Most development spets, for a long time focused entirely on bribe collection by bureaucrats...
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This document was uploaded on 03/28/2014 for the course INAF 252 at Georgetown.

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