The Politics of Privilege: Rents and Corruption in Asia

Abstract

Explores whether offering bribes, corruption, & clientelism are beneficial or detrimental to Third World nations' development. A review of contemporary literature on offering bribes, corruption, & clientelism is presented to develop a theoretical framework for analyzing the economic effects of these practices. Seven factors that must be considered to resolve the issue are identified: calculability of corrupt actions; the need to determine which resources are wasted; receipt & subsequent investment of bribes; effects of corruption & clientelism on competition & market functioning; the influence of corrupt action on the state's role in developing the national economy; the impact of these processes on the institutionalization of state agencies & political parties; existence of other methods of economic & political development & their ability to counterbalance the effects of corruption & clientelism. Several recommendations for future research are also offered. J. W. Parker