1 Is Bribing Public Officials Ever Justified? Name Institutional affiliation Course code: course title Professor Date 2 Is Bribing Public Officials Ever Justified? Bribery is a type of fraud that occurs when a trusted public official or agency is paid to illegally or unlawfully provide private gain to a private person. It is a form of corruption and is generally shunned by society. This is especially so in the contemporary world. Whereas during the 1960s certain scholars viewed bribery as a way of bypassing bureaucratic hindrances in certain developing countries, presently, it may be hard to find scholars who view corruption from a positive point of view. In fact, over the last two decades, a huge portion of legal scholarship has been focusing on criticizing bribery.1 In line with this general trend, it is acknowledged herein that bribery cannot be justified from an economic or ethical point of view. The adverse consequences of bribery cannot be ignored. In line with the foregoing, this paper will analyze the extent to which bribing public officials is never justified. From an Ethical Point of View, Bribing Public Officials Cannot Be Justified Bribery cannot be justifiable from an ethical point of view because it goes against philosophical and religious rules. The Pentateuch of the Torah, which is shared by Christians and Judaists, is full of unequivocal condemnations of bribery. Examples of such provisions are contained in the books of Deuteronomy and Exodus and they state as follows; “You shall not pervert justice. You shall not show partiality, and you shall not accept a bribe…”2 and you shall take no bribe, for a bribe blinds the clear-sighted and subverts the cause of those who are in the right.”3 The basic religious book in Islam known as the Holy Quran also amply provides provisions against bribery. It provides that “Allah does not like corrupters” and calls upon 1 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 647 Deuteronomy 16:19 (English Standard Version). 3 Exodus 23:8 (English Standard Version). 2 3 believers to avoid unjustly consuming each other’s wealth, as well as, submitting portions of it to rulers through the payment of bribes.4 Following a survey of traditional, as well as, current sources, Mohammed Arafa, an Islamic Law expert, observes that bribery and corruption are major offenses that Islamic law deems to be both criminal and religious violations because of the serious harm they inflict to the community.5 The Christian and Judaist traditions are essentially against the practice of bribery and when the vice is looked at through these lenses, it is concluded that there can be no ethical justifications. When non-Abrahamic religious traditions are also examined, it can also be concluded that an ethical justification for corruption does not exist. For example, followers of Buddha's teaching pledge to five moral commandments. Bribery goes against the second rule, not to steal, and the fourth rule, not to lie.6 The most influential figure in Buddhism known as the Dalai Lama particularly views corruption as the distortion of the law.7 Bribery is also condemned in Confucianism. In this regard, Kong Qiu admonishes his followers to avoid placing too much focus on wealth. He argues that “a gentleman, in his plans, thinks of the Way; he does not think how he is going to make a living… a gentleman’s anxieties concern the progress of the Way; he has no anxiety concerning poverty .”8 Mencius, a renowned observer of Confucianism, observes that righteous people will neither accept a large, nor a small bribe.9 Taoism, on the other hand, focusses on a simple private life and an ancient Taoist scholar known as Chuang Tzu argues that Qur’an 28:77 (Sahih International). Arafa Mohamed A, "Corruption and bribery in Islamic law: are Islamic ideals being met in practice" (2012) Ann. Surv. Int'l & Comp. L. 18, 171 6 Horigan Damien P, "Of compassion and capital punishment: A Buddhist perspective on the death penalty" (1996) Am. J. Juris. 41, 271 7 Horigan Damien P, "Of compassion and capital punishment: A Buddhist perspective on the death penalty" (1996) Am. J. Juris. 41, 271 8 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 654 9 Bryan Van Norden, Mencius, THE STAN. ENCYCLOPEDIA OF PHIL (Edward N. Zalta ed., Winter 2014), 5 4 5 4 a mean man has a questionable level of intelligence since such a man does not rise above bribes and thereby does not live a simple life.10 Bribery is also vigorously condemned by Hinduism, Jainism, and Sikhism. According to Jainism, bribery is bluntly described as “the door for the advent of all evils” since those who depend on bribes “cut even the breast of their mother.”11 Most religious groupings essentially do not support bribery. Apart from the religious arguments against bribery, it should be recognized that bribery is also unethical because it distorts the agency relationship between the public and the bureaucrat. 12 Controlling Corruption by Robert Klitgaard describes governance using agency principles, and this book is a significant contribution to the study of corruption.13 In the book, Professor Klitgaard describes corruption as an agency issue. Bribery is seen as being unacceptable since it tampers with the relationship between the public (as the principal) and the bureaucrat (as the agent). It is further argued that bribery thrives when the institutions which hold together the agency relationship are either ineffective or underfunded.14 Bribery fundamentally harms the relationship between the people and their government. As observed by Bruce Ackerman, democracy cannot survive if governance decisions are sold to the highest bidder.15 When the vice of bribery is not eliminated, the legitimacy of democratic governments will be undermined. In line with this analysis, the objective of bribery laws is to safeguard the relationship between the people and their government. Bribery of government officials is illegal in almost every country. When discrete examples are examined, terminology that refers to government officials' functions 10 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 655 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 656 12 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 656 13 Morais Herbert V, "Fighting international crime and its financing: The importance of following a coherent global strategy based on the rule of law" (2005) Vill. L. Rev. 50, 583 14 Morais Herbert V, "Fighting international crime and its financing: The importance of following a coherent global strategy based on the rule of law" (2005) Vill. L. Rev. 50, 583 15 Ackerman Bruce, "The new separation of powers" (2000) Harvard law review, 634 11 5 is discovered. Payments to a bureaucrat in exchange for the performance of an official act are prohibited in Germany.16 Similarly, in the United States, payments to persuade a public employee to perform or avoid performing any act in contravention of such official's legitimate duty are prohibited.17 In China, stringent bribery laws have been put in place and the government has announced that the enforcement of such laws will the government’s priority.18 The principalagent relationship between the people and its government explains the passage of laws against domestic bribery. Bribery is also unethical because of the harm it leads to. According to Rose Ackerman, bribery laws are meant to protect against harm. Whereas for many years before 1996 the international community did not talk much about the vice of bribery, in 1996, the World Bank president announced a policy change. He vigorously stated that bribery is a form of cancer and that in many countries in the world, the people are demanding action because they have experienced the adverse socio-economic effects of bribery.19 Some of these adverse consequences include; the diversion of funds from the poor to the rich, increased cost of running businesses, and distortion of public expenditures. Presently, the harm caused by corruption is known to be pernicious and multitudinous. Since bribery is a form of corruption, the Foreword to the United Nations Convention Against Corruption outlines as follows; 16 STRAFGESETZBUCH [STGB] [PENAL CODE], Nov. 13, 1998, BUNDESGESETZBLATT, Teil I [BGBL I] 945, as amended, § 334(1) (Ger.) available at http://germanlawarchive.iuscomp.org/?p=752#334. 17 18 U.S.C. § 201(b)(1)(c) (2012) 18 Tim Donovan, “China’s Crackdown on Corruption and Government Spending: A Timeline” (January 23, 2004) CHINA BUS. REV., retrieved from http://www.chinabusinessreview.com/chinas-crackdown-on-corruption-andgovernment-spending-a-timeline/ 19 James D. Wolfensohn, Address to the Board of Governors at the Annual Meetings of the World Bank and the International Monetary Fund (Oct. 1, 1996), in VOICE FOR THE WORLD’S POOR: SELECTED SPEECHES AND WRITINGS OF WORLD BANK PRESIDENT JAMES D. WOLFENSOHN, 1995-2005, at 45, 50 (2005). 6 Corruption is an insidious plague that has a wide range of corrosive effects on societies. It undermines democracy and the rule of law, leads to violations of human rights, distorts markets, erodes the quality of life, and allows organized crime, terrorism, and other threats to human security to flourish.20 Bribery fundamentally leads to the adverse consequences mentioned above because (among other things) it alters the basis on which bureaucratic decisions are made by public entities. In a well-functioning market, objective consumers weigh price and quality when deciding which good or service to buy. Bribe-taking consumers, on the other hand, decide based on the quantity and quality of the bribe rather than the quality or price of goods or services. As a result of bribery, the decision-making procedure is also skewed since bribe takers are incentivized to delay, confuse, or conceal information. This type of decision might result in the creation of lower-quality goods and resource misallocation. Bribery cannot be ethically justified because, in the aggregate, it brings direct harm to individuals. As a form of corruption, bribery has been linked to higher child death trends, low child birth weight, and an increase in primary school dropout rates.21 Similarly, there is a substantial negative association between corruption and healthcare system viability and performance.22 Corruption hurts environmental policy and environmental quality. There has also been a link discovered between corruption and a rise in traffic deaths. Numerous studies have shown that when police officers take bribes, road traffic deaths increase since dangerous road- Kofi Annan, “Foreword to United Nations Convention Against Corruption,” (2004) U.N. OFFICE ON DRUGS & CRIME, at iii, U.N. Sales No. V.04-56160, retrieved from http://www.unodc.org/documents/brussels/UN_Convention_Against_Corruption.pdf. 21 Lewis Maureen, "Governance and corruption in public health care systems" (2006) Center for Global Development working paper 78, 44 22 Lewis Maureen, "Governance and corruption in public health care systems" (2006) Center for Global Development working paper 78, 44 20 7 use practices are tolerated. In their article titled “The direct and indirect effects of corruption on motor vehicle crash deaths,” Law et al. analyzed the relationship between motor vehicle crash deaths and corruption. They discovered that the aggregate effect of corruption is that it increases motor vehicle deaths by hindering the effective enforcement of regulations geared toward preventing road accidents.23 Bribery essentially leads to loss of human life. Bribery is unethical because the poor bear the burden of its consequences. As a result of income constraints, the poor substantially rely on public services and can be susceptible to extortion through bribery.24 Bribes particularly ‘sand the wheels’ of proper service delivery and cause detrimental welfare implications. The impoverished confront credit and financial hindrances that prevent them from obtaining private assistance. As a result of the lack of exit options, public officials exploit their unrestricted power to seek payments from public service customers.25 Justesen and Bjornskov found that in a group of Sub-Saharan African countries, the poor are more likely than the rich to pay bribes,26 whereas Kayaga and Franceys discovered that in Uganda's urban slums, poor households are more prone to pay bribes for water services.27 Kaufmann et al. found that poor Peruvian families use a significant portion of their strained budget in bribes with the hope that they will access public services. Essentially, bribery is used to penalize people for being poor since it acts as an illiberal tax regime and as a discrimination 23 Hua Law Teik, Robert B. Noland, and Andrew W. Evans, "The direct and indirect effects of corruption on motor vehicle crash deaths" (2010) Accident Analysis & Prevention 42.6, 1934 24 Mbate Michael, "Who bears the burden of bribery? Evidence from public service delivery in Kenya" (2018) Development Policy Review 36, 6 25 Mbate Michael, "Who bears the burden of bribery? Evidence from public service delivery in Kenya" (2018) Development Policy Review 36, 6 26 Justesen Mogens K. and Christian Bjørnskov, "Exploiting the poor: Bureaucratic corruption and poverty in Africa" (2014) World Development 58, 106 27 Kayaga Sam and Richard Franceys, "Costs of urban utility water connections: Excessive burden to the poor" (2007) Utilities Policy 15.4, 270 8 vehicle.28 Betrand et al. found that in India, public officials collude to collect bribes before common public services can be rendered,29 and Peiffer and Rose found that poor people are more prone to suffer bureaucratic corruption in most African countries, and the cost of bribes is higher in contrast to the rich.30 Essentially, numerous literature has shown that the cost of bribery is disproportionately felt by the poor. As a result of such adverse consequences, bribing a public official is not ethically justified. From an Economic Point of View, Bribing Public Officials Cannot Be Justified When renowned public officials are faced with bribery charges, one of the defenses or justifications they present is that the remission of a bribe was necessary for the operation of a business.31 It is essentially claimed that the payment of a bribe is a must in particular jurisdictions. In Australia, A business reporter, James Adonis, made a broad allegation and stated as follows: “In essence, the bribery debate is not about whether the practice is good or bad…The argument has more to do with whether it’s avoidable. And in many cases, it’s not. In some places, a deal isn’t sealed with the shaking of hands. It’s sealed with the handing over of a bulky envelope.”32 28 Kaufmann Daniel, Judit Montoriol-Garriga, and Francesca Recanatini, "How does bribery affect public service delivery? Micro-evidence from service users and public officials in Peru" (November 21, 2005) Micro-Evidence from Service Users and Public Officials in Peru, 1 29 Mbate Michael, "Who bears the burden of bribery? Evidence from public service delivery in Kenya" (2018) Development Policy Review 36, 6 30 Peiffer Caryn, and Richard Rose, "Why Do Some Africans Pay Bribes While Other Africans Don't?" (2014), Afro-barometer Working Paper No. 148, 1 31 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 665 32 James Adonis, “Bribery: A necessary evil?” (Oct. 11, 2013), SYDNEY MORNING HERALD, retrieved from http://www.smh.com.au/small-business/managing/work-in-progress/bribery-anecessary-evil-201310102vb8s.html#ixzz3riFDm5Jt. 9 Similar statements were made by Silvio Berlusconi, the former Italian Prime Minister. This official was defending another public official who had been accused of bribery. Berlusconi particularly stated that to be a global entrepreneur, one has to give bribes. A regional director of SAP International, Vicente Eduardo, claimed while pleading guilty to infringement of bribery laws, that he was convinced that he could only get the government contracts if he paid the bribes required.33 This precludes that the payment of bribes is not only understandable but also permissible. This is, however, misguided. Whereas studies have shown that transnational businesspeople rate bribery requests as a primary challenge, the studies have not shown that this problem is faced in all business scenarios.34 Jason Yockey, for instance, analyzed two surveys on the recurrence with which bribes are requested for.35 Yockey discovered that bribe requests are common in several countries and that businessmen are appropriately concerned.36 The survey did not, however, suggest that bribe requests are made in every situation. Essentially, even in the most corrupt countries, certain firms find a way of avoiding the payment of bribes. Further, the right to conduct business does not preclude that a person has the right to commit bribery. The bribing of a public official cannot be justified on the ground that it is necessary for the conduct of international or domestic business since this observation is wholly misguided. Bribery leads to certain specific adverse effects on the economy of a country. In most low-income and middle-income countries, the significance of investment projects cannot be underestimated. There is arguably no developing country in the world that does not push hard to attract more foreign direct investment, even the most isolated.37 Politicians and policymakers 33 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 666 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 666 35 Yockey Joseph W, "Solicitation, Extortion, and the FCPA" (2011) Notre Dame L. Rev. 87, 781 36 Yockey Joseph W, "Solicitation, Extortion, and the FCPA" (2011) Notre Dame L. Rev. 87, 781 37 Sachs Jeffrey D, "The importance of investment promotion in the poorest countries" (2007) World Investment Prospects,(Special Edition), 78 34 10 understand that foreign direct investment contributes capital, technology, jobs, and connections to the global economy.38 Essentially, investment projects can be used to infuse long-term socioeconomic development. As a result of the vice of bribery, however, this is not achievable. Investment projects have a history of attracting high-level corruption. Bribery and corruption can greatly skew public spending, both in amount and content, due to the discretion that some highlevel public officials have on decisions about public investment projects.39 Some public projects have been carried out intentionally to allow individuals or political groups to receive "commissions" from those that are chosen to carry out the projects. This has diminished the expenditure's productivity and resulted in initiatives that would not have been authorized based on objective investment criteria such as cost-benefit analysis.40 In a country like Nigeria, a study conducted by Daniel Joseph Onogwu revealed that bribery and corruption have harmed public investment.41 The scholar referred to a study that had been done by an agency known as the Nigeria Bureau of Statistics.42 The study showed that between June 2015 and May 2016, N400 billion had been paid to public officials as bribes.43 Bribery and corruption were particularly recorded in instances when public investment projects were needed.44 As a result of the vice, projects would be run down by individuals who focus on individual gain rather than building their country. Eventually, even though Nigeria has plenty of natural resources such as oil, long- 38 Sachs Jeffrey D, "The importance of investment promotion in the poorest countries" (2007) World Investment Prospects,(Special Edition), 78 39 Tanzi Vito, "Corruption around the world: Causes, consequences, scope, and cures" (1998) Staff papers 45.4, 560 40 Tanzi Vito, "Corruption around the world: Causes, consequences, scope, and cures" (1998) Staff papers 45.4, 560 41 Onogwu D. J., "Corruption, Public Investment and Revenue: Evidence from Nigeria" (2018) Int J Econ Manag Sci 7.556, 2 42 Onogwu D. J., "Corruption, Public Investment and Revenue: Evidence from Nigeria" (2018) Int J Econ Manag Sci 7.556, 2 43 Onogwu D. J., "Corruption, Public Investment and Revenue: Evidence from Nigeria" (2018) Int J Econ Manag Sci 7.556, 2 44 Onogwu D. J., "Corruption, Public Investment and Revenue: Evidence from Nigeria" (2018) Int J Econ Manag Sci 7.556, 2 11 term development is curtailed since investment projects are rarely carried to completion. When such examples are considered, it can be concluded that bribing public officials cannot be justifiable from an economic standpoint. Bribery has been known to exasperate socioeconomic inequality and this has a long-term effect on the economic development of a country. In many countries, as compared to the private sector, the government provides certain resources, goods, and services at below the market prices.45 These services can be linked with credit, foreign exchange, water, electricity, some rationed goods, public housing, education and health services, as well as access to public land.46 The provision of such goods, resources, and services at below the market value is meant to ensure that the problem of income disparity is addressed to a certain scale. Individuals greatly benefit when they have access to such resources as provided by the government. When there is a limited supply, however, queuing and rationing are unavoidable. Public employees, therefore, have to make decisions on how the excess demand is going to be handled. If a person pays them a bribe, they get priority. The result is that those who have the greatest need and are unable to afford the bribe required will not access the subsidized goods, services, or resources.47 The payment of bribes essentially exasperates socioeconomic inequality and it eventually leads to an adverse long-term effect on the economic development of a country. Bribery is a barrier to socioeconomic progress and it limits an individual’s chances of upward social mobility. In many countries, startups experience numerous barriers to entry into a market. Some of those barriers include; capital requirements, product differentiation, economies of scale, and access to channels of distribution, among other barriers. As a result of such barriers, 45 Tanzi Vito, "Corruption around the world: Causes, consequences, scope, and cures" (1998) Staff papers 45.4, 573 Tanzi Vito, "Corruption around the world: Causes, consequences, scope, and cures" (1998) Staff papers 45.4, 560 47 Tanzi Vito, "Corruption around the world: Causes, consequences, scope, and cures" (1998) Staff papers 45.4, 560 46 12 monopolies and oligopolies are created. Apart from all these barriers to entry, bribery is an additional barrier. Particularly, when there is uncertainty over the number of bribes that should be paid and when they will be paid, potential entrants are deterred from entering the market. Whereas it has been argued by certain individuals that corruption greases the wheels of progress by eliminating the inefficiencies brought about by government intervention, there is overwhelming evidence to show that corruption sands the wheels of progress by being an additional barrier to market entry.48 Apart from preventing potential entrants from entering a market, bribery also increases the strength of monopolies and oligopolies. Specifically, when there is a minimal way of avoiding paying a bribe and bribes are collected on a regular and frequent basis – such as in the case of a highly successful corruption system and/or bad institutions – established corporations perform better.49 This occurs because a profit-maximizing public employee would want to give incumbent enterprises more oligopoly power by permitting fewer new firms to enter the market. In a system where there is a strong probability of avoiding paying bribes, on the other hand, the government employee will prefer to spread the risk among enterprises and allow more firms to enter the market.50 Nauro Campos, et al conducted a study to measure the role of bribery and corruption in ‘sanding’ the wheels of socioeconomic progress and their study revealed that the vices have a harmful effect on the creation of new entities.51 In line with this observation, bribing public officials cannot be justified from an economic standpoint. 48 Campos Nauro F., Eugenio Proto, and Saul Estrin, "Corruption as a barrier to entry" (2010) Briefing Series 4, retrieved at https://voxeu.org/article/corruption-barrierentry#:~:text=It%20argues%20that%20corruption%20acts,negative%20effect%20on%20economic%20performance . 49 Campos Nauro F., Eugenio Proto, and Saul Estrin, "Corruption as a barrier to entry" (2010) Briefing Series 4 50 Campos Nauro F., Eugenio Proto, and Saul Estrin, "Corruption as a barrier to entry" (2010) Briefing Series 4 51 Campos Nauro F., Eugenio Proto, and Saul Estrin, "Corruption as a barrier to entry" (2010) Briefing Series 4 13 Bribes are also unjustifiable because they inhibit public service provision by being a substitute for taxation.52 In a corrupt setting, businesses are frequently warned that an upfront bribe is required even before a company can be founded, and that corrupt officials may thereafter seek a part of the investment's revenues.53 Consequently, businesspeople regard corruption as a form of tax—albeit one that is exceptionally harsh, given the need for secrecy and the uncertainty that the bribe-taker would keep his word.54 In some countries in Southeast Asia, bribery and corruption is the norm and it is indeed seen as a form of taxation.55 Before the 1997 currency crisis, countries like Indonesia and Thailand were grappling with systemic corruption and this adversely affected public service provision since monies that could have been used to pay tax are being given to bureaucrats in form of bribes. To the extent that bribery adversely impacts public service provision, there is no justification for it. In developing countries, bribery is particularly of no economic value because it reduces the likelihood of financial assistance from overseas countries and organizations. The advantages of foreign aid to developing countries cannot be overstated. During times of disasters, pandemics, or calamities, foreign aid has been used to save lives. In recent times, when the Coronavirus pandemic emerged, for instance, the economies of developing countries were adversely affected and the countries overwhelmingly received financial aid to not only boost their economies but also save lives through the provision of face masks and vaccines.56 Foreign aid has also been used to assist in agricultural production and promotion of sanitation, among other matters. In countries like Kenya and Ghana, foreign aid is now being used to construct 52 Campos Nauro F., Eugenio Proto, and Saul Estrin, "Corruption as a barrier to entry" (2010) Briefing Series 4 Campos Nauro F., Eugenio Proto, and Saul Estrin, "Corruption as a barrier to entry" (2010) Briefing Series 4 54 Campos Nauro F., Eugenio Proto, and Saul Estrin, "Corruption as a barrier to entry" (2010) Briefing Series 4 55 Tanzi Vito, "Corruption around the world: Causes, consequences, scope, and cures" (1998) Staff papers 45.4, 573 56 Brown Stephen, "The impact of COVID-19 on development assistance" (2021) International Journal 76.1, 42 53 14 long-term infrastructure which will in the long run help the developing countries be more independent.57 Kenya has particularly been using the World Bank aid to establish long-term infrastructure.58 Foreign aid is presently of great benefit to developing countries. If, however, bribery and corruption persist, the likelihood of getting this assistance is diminished since foreign countries and organizations may worry that the financial aid will be used to support wasteful and unproductive government expenditures. In 1996, the World Bank president announced a policy change. He vigorously stated that bribery, like corruption, is a form of cancer and that urgent steps were going to be taken to address the concern. An important step in this regard is the denial of foreign aid to countries that do not effectively address the endemic problem of bribery and corruption. The bribing of public and foreign officials, therefore, has no value to developing countries. Bribery and corruption also have no economic value to emerging economies such as lowincome and middle-income countries because when such vices are entrenched in the nation’s culture, the nation is incapable of progressing to the same extent as nations that have low levels of bribery and corruption. When the economy of a country like Kenya and Bangladesh are compared, it can be concluded that the aforementioned hypothesis is true. In the 1960s and 1970s, the GDP growth rate of Kenya was about 7 percent per annum.59 During the same period, Bangladesh had a GDP growth rate of about 2 percent per annum.60 After its independence, Kenya consistently experienced a growth in the GDP rate. During the 1970s, Bangladesh, on the 57 Anyieni Abel, "Evaluating the impact of foreign aid on growth: A case of Kenya" (2014) International Journal of Physical and Social Sciences 4.3, 101 58 Anyieni Abel, "Evaluating the impact of foreign aid on growth: A case of Kenya" (2014) International Journal of Physical and Social Sciences 4.3, 101 59 Roberts J and S Fagernas, "Why is Bangladesh outperforming Kenya? a comparative study of growth and its causes since the 1960s” (2004) ODI Strategic Policy Impact and Research Unit (SPIRU) Papers 5, 2 60 Roberts J and S Fagernas, "Why is Bangladesh outperforming Kenya? a comparative study of growth and its causes since the 1960s” (2004) ODI Strategic Policy Impact and Research Unit (SPIRU) Papers 5, 2 15 other hand, experienced a period of economic decline. Certain institutional measures were taken towards changing this tide and in the turn of the 1980s and 1990s, the economy of Bangladesh was growing at about 4.5 percent per annum while Kenya’s growth rate had started declining.61 In the decades to follow, the difference would continue to widen and eventually, the economic growth in Kenya started to sink. During the 1970s, Bangladesh recorded mediocre performance because of the political and economic instability it was experiencing especially as the East Wing of Pakistan.62 Economic revival was, however, experienced when political and economic stability became a reality. Strong institutional structures were also put in place and as a result there was no breeding ground for inefficient bureaucracy and corruption.63 Kenya, on the other hand, experienced consistent economic growth during its formative years but by the turn of the 1980s, corruption and bribery existed at all levels of government.64 Among other things, this resulted in a decline in real wages and a fall in public expenditure.65 Bangladesh is now more economically advanced as compared to Kenya and the variance between the GDP growth rate of the two countries is partly attributable to the prevalence of the vice of bribery in the latter country. Bribery and corruption, therefore, have no economic value to developing countries. As alluded to above, governments heavily invest in long-term infrastructural projects in the hope that the benefits thereof will be felt by several subsequent generations. Whereas such investments can pose a heavy strain on the country’s resources, the long-term gain that will be 61 Roberts J and S Fagernas, "Why is Bangladesh outperforming Kenya? a comparative study of growth and its causes since the 1960s” (2004) ODI Strategic Policy Impact and Research Unit (SPIRU) Papers 5, 2 62 Roberts J and S Fagernas, "Why is Bangladesh outperforming Kenya? a comparative study of growth and its causes since the 1960s” (2004) ODI Strategic Policy Impact and Research Unit (SPIRU) Papers 5, 2 63 Roberts J and S Fagernas, "Why is Bangladesh outperforming Kenya? a comparative study of growth and its causes since the 1960s” (2004) ODI Strategic Policy Impact and Research Unit (SPIRU) Papers 5, 2 64 Roberts J and S Fagernas, "Why is Bangladesh outperforming Kenya? a comparative study of growth and its causes since the 1960s” (2004) ODI Strategic Policy Impact and Research Unit (SPIRU) Papers 5, 2 65 Roberts J and S Fagernas, "Why is Bangladesh outperforming Kenya? a comparative study of growth and its causes since the 1960s” (2004) ODI Strategic Policy Impact and Research Unit (SPIRU) Papers 5, 2 16 derived from the use of the infrastructure justifies the cost of the investment. Bribery cannot, however, allow a country to fully benefit from such investments. When a corrupt system is in place, public procurement contracts will be given not based on merit but based on the payment of bribes as required. This means that the least qualified contractor can be awarded the contract and the quality of infrastructure will be low. In a country like Nigeria, evidence has shown that there is a close relationship between infrastructural decay and corruption. This can aptly be seen in the electricity sector. In almost every household in Nigeria, electricity challenges are experienced and some households resolve this challenge by using generators or solar power.66 This challenge is experienced even though the government heavily invests in the electricity sector. Between 1999 and 2007, it was claimed by the government that more than one trillion nairas (an equivalent of 2.4 billion US dollars) had been spent on the electricity sector.67 The quality and quantity of power supply were, however, grossly inadequate and this is attributable to mismanagement of funds by the firms charged with the task of providing electricity.68 It can be concluded that the firms were not qualified to handle the task they had been given and they only secured the contracts by corrupt means such as through the payment of bribes. Up to today, Nigerian households continue to face electricity shortages and this is a direct consequence of bribery and corruption. The government invests heavily in the creation of the long-term infrastructure but no results are recorded. Since bribery affects public procurement and leads to the creation of lower quality infrastructure, the bribing of public officials cannot be economically justified. 66 Ogbuagu Uchechi, Peter Ubi, and Lionel Effiom, "Corruption and infrastructural decay: perceptible evidence from Nigeria" (2014) Journal of Economics and Sustainable Development 5.10, 21 67 Ogbuagu Uchechi, Peter Ubi, and Lionel Effiom, "Corruption and infrastructural decay: perceptible evidence from Nigeria" (2014) Journal of Economics and Sustainable Development 5.10, 21 68 Ogbuagu Uchechi, Peter Ubi, and Lionel Effiom, "Corruption and infrastructural decay: perceptible evidence from Nigeria" (2014) Journal of Economics and Sustainable Development 5.10, 21 17 Generally, corruption hurts economic growth and investment. As per data analysis, the amount of corruption is negatively associated to investment and growth, implying that more bribery leads to less investment and growth.69 The study found that when the corruption index improves by one standard deviation, the rate of return on capital increases by more than 4% and the annual growth rate of per capita GDP increases by over a half percentage point. In reality, a country that lowers its corruption index will experience a 4-percentage-point increase in investment, leading to more jobs and economic growth.70 Essentially, bribery has a direct effect on investment and economic growth. Bribery and corruption cannot result in any long-term advantages to an economy. Steps should, therefore, be taken by countries to eliminate bribery. On an individual basis, people should also avoid giving bribes to public officials. The Rare Occasions When the Payment of Bribes can be Ethically Justified On certain limited occasions, the payment of bribes may be justified. In authoritarian regimes, for instance, freedom and personal space are limited. Activities that most people consider usual are frequently restricted. As a result, such acts take occur in a private setting, away from official monitoring.71 People living in authoritarian regimes, for instance, can acquire private space by paying bribes. Bribes are paid before people can engage in activities like practicing their religion, surreptitiously learning how to read, exchanging and bartering products, or visiting relatives.72 The activities of Oskar Schindler can be used to illustrate the fact that in certain instances, the payment of bribes may be ethically justified. Schindler was a Nazi party Chêne Marie, "The impact of corruption on growth and inequality" (2014) Transparency International, 3 Chêne Marie, "The impact of corruption on growth and inequality" (2014) Transparency International, 3 71 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 677 72 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 677 69 70 18 member and German businessman who relocated to Poland shortly after WWII began. He bought a plant and secured government contracts through his links with the Nazi party. His factory hired many Jewish workers, and ultimately employing more than one thousand Jewish workers.73 When the Jewish people continued receiving more heinous treatment especially as the war drew to a close, Oskar Schindler stepped in to safeguard his employees from torture, abuse, deportation, and death.74 Through deception and the payment of bribery, he used his personal links to protect his employees. Over one thousand people survived the Holocaust thanks to Oskar Schindler's bravery and guile, as well as his willingness to pay bribes.75 As a result of his actions, Yad Vashem, the Jewish People's Living Memorial to the Holocaust, has named Oskar Schindler "Righteous Among the Nations."76 Similarly, the United States once had stringent laws against escaped slaves and violation of the laws amounted to civil disobedience. The Underground Railroad, however, paid a bribe and many people were rescued from the torture of slavery.77 The Underground Railroad's conductors are hailed as heroes.78 Essentially, in authoritarian regimes wherein private space can only be acquired through the payment of bribes, bribery is justifiable. This is especially so when it corrects an endemic social evil and brings the greatest good to most people. Conclusion Bribery is a form of fraud in which a trusted public official or agency is paid to offer private gain to a private person illegally or unlawfully. It is a sort of corruption that society 73 Nichols Philip M, "The Good Bribe" (2015) UCDL Rev. 49 (2015), 677 Crowe David, Oskar Schindler: The Untold Account of His Life, Wartime Activites, and the True Story Behind the List (Basic Books, 2007), 55 75 Crowe David, Oskar Schindler: The Untold Account of His Life, Wartime Activites, and the True Story Behind the List (Basic Books, 2007), 55 76 Switala William J, Underground railroad in Pennsylvania (Stackpole Books, 2008), 76 77 Switala William J, Underground railroad in Pennsylvania (Stackpole Books, 2008), 76 78 Switala William J, Underground railroad in Pennsylvania (Stackpole Books, 2008), 76 74 19 normally avoids. From an ethical point of view, bribery cannot be justified because it goes against philosophical and religious rules. Almost all religions of the world shun bribery. An analysis of Christian and Islamic texts reveals that bribery is not only unethical, but it is criminal and immoral. Other non-Abrahamic religions such as Confucianism and Buddhism also instruct believers to shun the vice of bribery. Apart from the religious considerations against bribery, it is also important to understand that bribery is unethical since it distorts the principal-agent relationship between the public and the bureaucrat. Public employees are given a trust and they are mandated to serve the people. When they take part in bribery, they betray this trust. Bribery is also unethical because of the harm it leads to. Some of these adverse consequences include; the diversion of resources from the poor to the rich, increased cost of running businesses, and distortion of public expenditures. Ultimately, bribery is ethically unjustifiable because the resultant burden is borne by the poor. From an economic point of view, it is also unjustifiable because it leads to specific adverse effects on the economy of a country. 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