FILSAFAT KORUPSI - Direktori File UPI
FILSAFAT KORUPSI - Direktori File UPI
FILSAFAT KORUPSI - Direktori File UPI
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elationship can be overcome or even significantly reduced. But the point is that the<br />
potential for corruption is extraordinarily high. Perhaps the UK's handing over of Hong<br />
Kong to China was nothing other than an instance of corruption of the institution of<br />
democracy in Hong Kong, given a majority of the people living in Hong Kong did not<br />
wish to return to Chinese rule, and given the triadic power relationship that existed<br />
between China, the UK and Hong Kong.<br />
75<br />
Page 14<br />
Paper given at the international conference, Civil Society, Religion & Global Governance:<br />
Paradigms of Power & Persuasion, 1–2 September 2005, Canberra Australia<br />
14<br />
The general point to be made about corruption arising from interaction in the context of<br />
lop-sided power relationships is as follows. We have already identified a range of<br />
conditions conducive to corruption that obtain in trans-cultural interaction but not<br />
elsewhere. Trans-cultural interaction that takes place in the context of a lop-sided power<br />
relationship between the institutional actors is, therefore, likely to be even more<br />
conducive to corruption than in other contexts.<br />
V<br />
Rent Seeking/Corruption And Growth:<br />
Author Info<br />
Angeletos, George-Marios<br />
Kollintzas, Tryphon<br />
A Simple Model<br />
Additional information is available for the following registered author(s):<br />
George-Marios Angeletos<br />
Abstract<br />
The goal of this paper is to propose a simple paradigm for understanding rent seeking<br />
and corruption in the growth context. We develop an endogenous growth model where<br />
entrepreneurs, as intermediate-good producers, may engage in rent-seeking activities. The<br />
latter are defined by the following properties: (i) their internal effect is positive; (ii) their<br />
external effect is negative; and (iii) they use real resources. Our formulation may be<br />
viewed as a parable for theft and fraud; organized crime; industrial espionage; lobbying<br />
and policy influence; misgovernance, institutional inefficiency, tax evasion, etc. The<br />
economy is shown to fall into a trap of high rent seeking/corruption and low growth.<br />
Agents' perceptions about the external effects of rent seeking, and the complementarity or<br />
substitutability of intermediate inputs, are crucial. Contrary to conventional wisdom,