Research | Corruption - Point of no return

 A high degree of corruption is detrimental to the wealth creation of many nations. Corruption in goverment takes many forms, but according to Michael Beenstock, all forms of corruption share "the secret and usually ilegal abuse of conferred monopoly status". Beenstock distinguished three specific types of corruption:

1. Extortionary corruption, in wich payment is demanded for performing legal acts.
2. Subversive corruption, where bribery secures illegal actions.
3. Benign corruption, in wich the salaries of the lower-grade civil servants are modestly augmented by additional payments, that in many ways resemble tips or gratitudes.

 Corruption introduces distortions in the efficiency of resource allocation. When inferior products/services are chosen, the society is worse off. Even when the best products are selected, the existance of bribe means a higher cost. Corruption not only creates a concentration of unproductive wealth, much of wich flies out of the country, but also corrodes the nation´s culture, attitudes and values.

 Cambodia has the three types of corruption. The need of an Anti-Corruption Law, is more than obvious. The efforts to have an Anti-Corruption Law in Cambodiastarted in 1994. Each draft produced over the past 16 years has been below the international standards. The final draft was made available last week (10 - 05 - 2010)  after it was seriously scrutinized by concerning ministries. The 25-page anti-corruption law consists of 9 chapters with 57 articles, covering many forms of corruptions. The draft law requires all government officials in particular to declare their assets and debts. Most of Cambodians say that this law will never see the light.
 
http://piseth.info/docs/Cambodia%20anti%20corruption%20law%20-%20English.pdf
http://www.scribd.com/doc/10126390/Anti-Corruption-Law-of-Cambodia
http://english.peopledaily.com.cn/90001/90777/90851/6914793.html
The Marketing of Nations by Philip Kotler