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Grand Corruption in Utilities

  • Kenny, Charles

    ()

    (The World Bank)

  • Soreide, Tina

    ()

    (The World Bank)

This paper discusses mechanisms of grand corruption in private sector utility provision in developing countries. By the term "grand corruption," the authors abstract from the petty corruption that consumers experience -- for example, when firms and individuals pay bribes to get water delivery or an electricity connection. The paper focuses on decisions made at the government level involving private sector management, ownership, and provision of utility services. Corruption at that level may influence the pace and nature of private sector involvement and competition in utilities, as well as the level and form of investments, subsidies, and prices. On the basis of a literature review and interviews with firms and regulating authorities in two countries, Tanzania and the Philippines, this paper discusses the levels and determinants of grand corruption in utilities. The paper concludes by discussing a research program to extend this knowledge through a cross-country survey instrument.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4805.

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Length: 26 pages
Date of creation: 01 Dec 2008
Date of revision:
Handle: RePEc:wbk:wbrwps:4805
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  1. Wells, Louis T. & Ahmed, Rafiq, 2007. "Making Foreign Investment Safe: Property Rights and National Sovereignty," OUP Catalogue, Oxford University Press, number 9780195310627, December.
  2. O. Compte & A. Lambert-Mogiliansky & T. Verdier, 2005. "Corruption and Competition in Procurement Auctions," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 1-15, Spring.
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  13. Clarke, George R. G. & Xu, Lixin Colin, 2004. "Privatization, competition, and corruption: how characteristics of bribe takers and payers affect bribes to utilities," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2067-2097, August.
  14. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
  15. Kaufmann, Daniel & Wei, Shang-Jin, 1999. "Does 'Grease Money' Speed Up the Wheels of Commerce?," MPRA Paper 8209, University Library of Munich, Germany.
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  19. Andvig, Jens Chr. & Moene, Karl Ove, 1990. "How corruption may corrupt," Journal of Economic Behavior & Organization, Elsevier, vol. 13(1), pages 63-76, January.
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  21. Laffont,Jean-Jacques, 2005. "Regulation and Development," Cambridge Books, Cambridge University Press, number 9780521549486, Junio.
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  28. repec:cup:cbooks:9780521632935 is not listed on IDEAS
  29. Jean Tirole, 1985. "Procurement and Renegotiation," Working papers 362, Massachusetts Institute of Technology (MIT), Department of Economics.
  30. Dal Bo, Ernesto & Rossi, Martin A., 2007. "Corruption and inefficiency: Theory and evidence from electric utilities," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 939-962, June.
  31. Rose-Ackerman, Susan, 2002. ""Grand" corruption and the ethics of global business," Journal of Banking & Finance, Elsevier, vol. 26(9), pages 1889-1918, September.
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