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Saturday, April 9, 2011

How Corruption Works

Corruption is the abuse of power to obtain benefits, such as political or personal gain. Wealth, power and influence are all related, not necessarily a bad thing that people who get rich are usually intelligent and in most cases honest (which mostly only talk about the bad apples in the news). Those who have achieved great influence are usually the talented people who are in the know about a particular area of ​​expertise. And those who grow powerful are generally competent people can do things. Of course they are those who have the luck to be born in power or wealth, but unless these people are especially smart or talented in their own way, no more often than not placed in positions of great authority. George W. Bush is actually an intelligent person, he did at Yale University and earned an MBA from Harvard Business School, just watching YouTube videos of him before the election and seem very competent. What happened next is a different story.

To explain the corruption here I will concentrate on the lower levels of corrupt authority in the public and private sector. Private sector organizations tend to be more efficient than their public sector because the private non-profit will not last long with out customers actively choose to buy products or services from them for reasons such as those being better than competing products or services. Whereas the public sector, many times the consumer is not much of a choice or say. For example, how U.S. law enforcement runs, there seems to be much room for improvement does not seem to be working, there are many terrible examples of U.S. police brutality there.

So let's say that a new road to multi-million dollar paving contract at stake and the city has to hire a company to do the job, obviously, want to keep the taxpayers and voters happy all the time. Organizations that want the contract must submit a "bid" (the amount they charge, and a contract that will do) for the job and the board decides that the offer "choice.

Bidder is a fish with a relatively short time, "paver Joe ', which presents a small price for the work and sees this as an opportunity to grow your business instead of making a profit. His contract is a bit more professional and the work is not guaranteed a professional job, but save taxpayers a lot.

Bidder two is, they've done Paving Inc., this type of work before, not the company is very professional and can guarantee a perfect job done, but at a significantly higher price. The taxpayer knows that his ways will be done but at a sacrifice of waiting for the funds.

Bidder three is "corrupt R us'. There will be a price only slightly higher than the price of the paver Joe, and look extremely professional, eye-catching brochures and Armani suits. They also have all this for the golf tips in Palm Beach and Spa Resort, all expenses paid, and bring the family. open bar too. After the speeches about the company, drinks and of course, part of the contract that states that monthly reports are going to happen here again in the season, so we are again in a few months if you choose us. Everything is very fresh and seems reliable.

Awarded Bidder three. During one of the monthly reports, a talk is given about how the stones are encountered some problems along the way and they have to do the excavation procedure in accordance with paragraph 12 of section 2b and will cost an extra $ 2 million, but guess what, thankfully, that hired us and we managed to reduce the burden on suppliers and will cost only $ 1.5 million. So thanks to their great options you just saved the taxpayers half a million dollars! Along with some cases like this, the contract price can double or triple.

The Council now has the option or period of history to the public or admit they were deceived into committing political suicide. They choose the former. This is a made up example, but based on real events that continue to happen all the time, and explains most of government resources lost. It does not seem as sinister political corruption can be seen in a James Bond movie, but this is just one example of corruption on a small scale of things, it gets worse the higher up you go.

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