LONDON — Some people regard corruption as a victimless crime. It is nothing of the kind. Corrupt practices lead to the granting of favors not available to those unwilling or unable to offer bribes, increase costs, and limit competition.
In Russia and China the media report that corruption is deeply rooted in society. In many places in both countries the police are underpaid and expect or demand cash from anyone accused of a petty offense. If the bribe is large enough, the offense will be overlooked or at least a lesser charge may be made against the offender. The planning process provides many opportunities for bribery.
The bribes that must be paid to officials at different levels add significantly to costs and ensure that fair competition is impossible. Corrupt practices are particularly prevalent in countries without a tradition of an independent judiciary and a long-standing rule of law.