Graft and the small business

Article Abstract:

Small businesses in Indonesia are the victims of bureaucratic corruption because officials come round regularly to 'ask' for unofficial taxes which the business people give because they fear the repercussions of not doing so. They also may have to pay 200 times more than the official rate to get a licence to trade. Failure to pay means their application is not processed. Small businesses in Java and Bali have to pay up to 20% of their gross annual income in these unofficial payments. The government has passed new legislation to combat the problem but it may only make matters worse.

Police Protection, Small Business, Racketeering, Crimes against, Indonesia, Extortion

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Ma main man: some corruption targets are justice minister's friends

Article Abstract:

Taiwanese Justice Minister Ma Ying-jeou spearheads the government's anti- corruption effort, which has netted 2100 indictments in the past 17 months. More than 25% of those charged are senior party officials or businessmen, and the numbers include 40% of all locally elected county and city officials. Ma cites rising public spending and relaxed discipline since the end of martial law as encouraging more corruption, and has proposed new laws including lighter sentences that judges will be more comfortable imposing.

Taiwan, Cover Story

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The payoff equation: small government = small corruption

Article Abstract:

Hong Kong's success demonstrates the value of a small government in which politicians and bureaucrats have few favors to dispense because businessmen do not need their help or permission. Corruption is rampant elsewhere in Asia not because the people are more corrupt than elsewhere but because they use systems that encourage it. Fixing those systems will end much of the bribery and related problems that are recurring scandals.

Editorial, Prevention, East Asia, Decentralization in government, Government decentralization

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