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Thursday March 31

Corruption helps (sometimes)

A quote from an interview with Rafael di Tella, a Harvard Business School Professor, on corruption.

There are countries that can grow a lot with corrupt governments and others where corruption is quite detrimental to economic progress. It really depends on the form of corruption and how markets are organized.

Funnily enough, Malaysia is one of those countries that I think grows from corruption as di Tella puts it. Although corruption in Malaysia is used to protect personal assets and to grow personal assets, (at the higher end) it is often used to protect the economy and large scale financial assets too. Thereby, keeping jobs and cash flow going. It is also used to speed up exchange of assets thus keeping large corporations more competitive in global and regional markets. In a way, in Malaysia, corruption is used in an arguably responsible and strategic sense.

http://hbswk.hbs.edu/item.jhtml?id=4714&t;=globalization

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