Stuck in an Equilibrium of High Corruption: The Strait Gate to a Fair and Transparent Society

Abstract

AbstractTarget 16.5 of SDGs aims to “Substantially reduce corruptionand bribery in all their forms.” It is widely accepted in economics that corruption aggravates the overall economic performance of a society. However, previous studies have also shown that firms providing bribes to public officials are likely to record higher sales growth, while public officials undoubtedly enjoy extra income or entertainment. Domestic and international actors have fought against corruption for long, but most of these efforts have failed, mainly due to the reluctance of public officials who benefit from the entangled networks of corruption. Corruption has become an equilibrium of the interactions of a variety of societal actors, which is thus considered a social institution. Historically, all societies were corrupt by today’s standards, but some of them have successfully overcome the hardship of escaping the equilibrium of corruption, achieving a more transparent society. The examples of such societies include Britain, the United States, Hong Kong and Singapore. These cases indicate that the strong political will of powerful elites is necessary for successful transitions. Many developing countries do not meet such conditions, which is a strait gate for a fair and transparent society.