Corruption is both a major cause and a result of poverty around the world.
Third World governments rarely use auctions [for concession, which, when done honestly, removes the opportunity for buyers to bribe sellers]. Hence strategic and diplomatic consideration enter the calculation: the government will want to give the concession to a company backed by a government which it believes will be helpful to it in its international relations—and in supplying it with arms and mercenaries. Once negotiation is adopted as the means of allocating concessions, the dominant incentive is for bidders to engage competitively in the bribery of local rulers and apparent tendency for bribery, which is intense in the business of seeking resource concession and selling arms, to become a secret habit of western firms and politicians that infects their domestic political behavior.
Transparency International https:// Global movement partnering with government, business and civil society to put effective measures in place to tackle corruption.
Corruption Perceptions Index Anti-corruption Knowledge Hub Global Corruption Barometer National Integrity System Assessment Carey, John M. “Transparency Versus Collective Action: Fujimori’s Legacy and the Peruvian Congress”.
Meanwhile western firms paid rulers to obtain concessions to extract oil and minerals.
The business of obtaining oil and mineral concessions has aways been conducive to the use of bribes, omissions, gifts, and favors, and remains so since there are huge (i.e.