This book integrates three issues: bureaucractic corruption, tax evasion and privatization. It answers the question: can the problem of tax evasion in a corrupt tax bureaucracy be tackled through privatization? The answer that it comes up with is 'no'. In a pervasive moral hazard situation private firms will engage in malfeasance as well as the corrupt officials. However, the crucial point is that the severity of the problem will be substantially different under a private regime. With private firms, evasion will be institutionalized and the transaction costs of negotiating and perpetrating a deal in evasion will be greatly reduced. This will be the result of the efficient operation of the market in corruption: the efficiency of the market in corruption will go up as the impact of structural and moral-psychological constraints will be slackened under a private regime. Consequently, the supply of corruption and demand for evasion will be higher than under the bureaucratic mode of enforcement. In the bureaucratic regime, the level of evasion remains relatively low, as bureaucrats tend to minimize costs of participation in corruption; corruption takes place at the individual level and despite venality, tax-officials exercise self-restraint in the face of prohibitively high costs of negotiating and perpetrating corrupt deals.
Key Words:
Corruption in Public Bureaucracy, Tax Evasion, Customs Evasion, Corruption in Customs Administration, Corruption in Bangladesh, Corruption by the PSI Agencies, Market in Corruption, Privatization of Enforcement, Tax Administration.
Foreword by Professor Christopher Hood
Author's Note by Faizul Latif Chowdhury
Chapter-1: Introduction
Chapter-2: Modelling bureaucratic inefficiency
Chapter-3: Efficiency of market in corruption
Chapter-4: Privatization of customs in Bangladesh
Chapter-5: Privatization - a Fatal Remedy
Chapter-6: Conclusions
Chapter-7: Epilogue - Back to Square
References
Annexure-1
Annexure-2
Annexure-3
E-mail to: faizul.chowdhury@skynet.be
Postal address:
Faizul Latif Chowdhury
29 Rue Jacques Jordaens
1000 Brussels
Belgium.
A Note on the Author
Faizul Latif Chowdhury
Bengali Poetry in English Translation - a unique Website
Poet Jibanananda Das - a dedicated Website on the poet
Links to Articles by Faizul Laif Chowdhury
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An Economic Model of Evasion of Customs Duty A Production Substitution Model of Smuggling |
Markets in Corrption Fiscal Policy of Bangladesh |
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A Comparative Study of Bengali Pornography Treatment of Sex in Bengali Literature |
Taslima Nasreen, Humayun Azad and Freedom of Speech Modern Bengali Poetry and Jibanananda Das |
Taslima Nasreen and Others Prabandha Samagra of Poet Jibanananda Das Aprokashito Jibanananda I have seen Bengal’s Face© 2007 Faizul Latif Chowdhury