Comment by Riaz Haq on September 18, 2021 at 7:08pm

Unbundling Corruption: Corruption is conventionally defined as the abuse of public office for private gain. This broad definition encompasses many varieties of corruption, but global indices, including the CPI and the World Bank’s Control of Corruption Index, present bundled scores – one number for every country. This approach obscures the fact that not all corruption is equally damaging. Indeed, I contend that certain kinds of corruption may stimulate growth in the short term yet produce serious risks and distortions. To revisit the relationship between corruption and capitalism, we must first unbundle corruption into qualitatively distinct types. Any useful typology must strike a balance between nuance and parsimony, that is, neither too few nor too many categories. Keeping this in mind, I propose a typology along two dimensions: (i) corruption with exchanges vs. theft, and (ii) corruption involving elites vs. non-elites. Two Dimensions​ ​ First, I distinguish between corruption involving two-way exchanges between officials and social actors29 – including but not limited to bribery – and corruption involving theft, such as embezzlement or extortion. Classic models of corruption focus on bribery.30 To give two examples from a long list, Shleifer and Vishny’s seminal article on corruption considers only bribery,31 and Fisman and Golden’s primer on corruption opens with the problem of “whether to pay a bribe to receive a government benefit or service.”32 But this omits an important form of corruption: state actors who steal from public coffers, or who extort without providing any benefit in return.33 Second, I highlight the difference between corruption involving elite political actors, such as politicians and leaders, and non-elites: regular civil servants, police officers, inspectors, customs officers, and front-line providers of public services. This dimension captures corruption that occurs among high- and low-level actors, which some term “grand” and “petty” corruption, respectively.34 Political elites can grant special deals, block access, or control public coffers. This kind of corruption, therefore, involves high monetary stakes and the allocation of valuable resources such as land and legislations. Conversely, rank-and-file bureaucrats exercise discretion only within their limited job scope, for example, processing permits or assigning school enrollment slots.


Ang, Yuen Yuen. China's Gilded Age (pp. 7-9). Cambridge University Press. Kindle Edition.

Comment by Riaz Haq on September 19, 2021 at 10:21am

Yuen Yuen Ang
@yuenyuenang
.
@reema_omer
thank you for mentioning my 

However, your summary "access money fueled growth" is misleading, so allow me to clarify

My book clearly maintains that all corruption, like drugs, are harmful. Access money generates growth with distortions, risks, and inequality.


https://twitter.com/yuenyuenang/status/1434542892090109952?s=20

Comment by Riaz Haq on May 27, 2022 at 4:21pm

HOUSE OF GRAFT: Tracing the Bhutto Millions -- A special report.; Bhutto Clan Leaves Trail of Corruption

https://www.nytimes.com/1998/01/09/world/house-graft-tracing-bhutto...

Officials leading the inquiry in Pakistan say that the $100 million they have identified so far is only a small part of a windfall from corrupt activities. They maintain that an inquiry begun in Islamabad just after Ms. Bhutto's dismissal in 1996 found evidence that her family and associates generated more than $1.5 billion in illicit profits through kickbacks in virtually every sphere of government activity -- from rice deals, to the sell-off of state land, even rake-offs from state welfare schemes.

The Pakistani officials say their key break came last summer, when an informer offered to sell documents that appeared to have been taken from the Geneva office of Jens Schlegelmilch, whom Ms. Bhutto described as the family's attorney in Europe for more than 20 years, and as a close personal friend. Pakistani investigators have confirmed that the original asking price for the documents was $10 million. Eventually the seller traveled to London and concluded the deal for $1 million in cash.

The identity of the seller remains a mystery. Mr. Schlegelmilch, 55, developed his relationship with the Bhutto family through links between his Iranian-born wife and Ms. Bhutto's mother, who was also born in Iran. In a series of telephone interviews, he declined to say anything about Mr. Zardari and Ms. Bhutto, other than that he had not sold the documents. ''It wouldn't be worth selling out for $1 million,'' he said.

The documents included: statements for several accounts in Switzerland, including the Citibank accounts in Dubai and Geneva; letters from executives promising payoffs, with details of the percentage payments to be made; memorandums detailing meetings at which these ''commissions'' and ''remunerations'' were agreed on, and certificates incorporating the offshore companies used as fronts in the deals, many registered in the British Virgin Islands.

The documents also revealed the crucial role played by Western institutions. Apart from the companies that made payoffs, and the network of banks that handled the money -- which included Barclay's Bank and Union Bank of Switzerland as well as Citibank -- the arrangements made by the Bhutto family for their wealth relied on Western property companies, Western lawyers and a network of Western friends.

As striking as some of the payoff deals was the clinical way in which top Western executives concluded them. The documents showed painstaking negotiations over the payoffs, followed by secret contracts. In one case, involving Dassault, the contract specified elaborate arrangements intended to hide the proposed payoff for the fighter plane deal, and to prevent it from triggering French corruption laws.

Comment by Riaz Haq on July 4, 2022 at 10:49am

Asset declarations to be made public under IMF condition
Govt can exempt judiciary, armed forces’ members from disclosure

https://tribune.com.pk/story/2334492/asset-declarations-to-be-made-...


The government is walking a tight rope to implement all conditions by end of this month, if it is keen to get the IMF Board’s approval for the loan tranche on January 12.


The sources said that the IMF has imposed another condition that the high-level public office holders and the civil servants of basic pay scale (BPS) 17 and above, their spouses, children or benamidars, or any person in relation to whom these persons are beneficial owners will file their asset declarations with the Federal Board of Revenue. These assets will be then made public.

The government has also defined the high-level public officials who will be required to file their declarations which will be made public. An amendment is being drafted where only politically exposed persons defined by a rule, regulation, executive order or instrument; or under any law for the time being in force would be required to file their declarations, the sources said.

The government had resisted the demand to ensure compulsory declaration on the grounds that these people were already required to submit their asset details in the Establishment Division. However, the IMF did not agree to it and instead asked Pakistan that such declarations should be filed with the tax authorities.

However, many bureaucrats did not file their asset declarations, nor did they submit their annual income tax returns, including many taxmen.

The IMF’s view was that any important position holder drawing salary from the budget should disclose assets to ensure transparency.

“The disclosure of information in respect of high-level public officials is proposed in line with the requirements of the development partners, rule of law and integrity,” the note sent by the FBR chairman to the finance adviser about changes being made in the tax laws read.

However, the government has found a way out where the declarations filed by members of the armed forces would not be made public, the sources said, adding that the exception has been created by Law Minister Barrister Farogh Naseem.

Barrister Naseem was not available for comments.

The sources said that the requirement of non-disclosure of the asset declarations would not be applicable on those who were currently exempted from the applicability of the National Accountability Ordinance.

A proviso is likely to be inserted in the law that will state that nothing in clause (t) shall apply to those who are expressly exempted under clause (iv) of sub-section (m) of Section 5 of the National Accountability Ordinance, 1999.

What Clause 5 (m) (iv) says?

A person who is holding, or has held, an office or post in the service of Pakistan, or any service in connection with the affairs of the Federation, or of a province, or of a local council constituted under any federal or provincial law relating to the constitution of local councils, or in the management of corporations, banks, financial institutions, firms, concerns, undertakings or any other institution or organisation established, controlled or administered by or under the federal government or a provincial government, other than a person who is a member of any of the armed forces of Pakistan, or for the time being is subject to any law relating to any of the said forces, except a person who is, or has been a member of the said forces and is holding, or has held, a post or office in any public corporation, bank, financial institution, undertaking or other organisation established, controlled or administered by or under the federal government or a provincial government.

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