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| Friday, September 08, 2006 |
| Disaster begets charity. Charity begets greed. Greed begets corruption. |
Now there is a scientific proof. The Economist (September 2nd) has an interesting article on a new paper about corruption and aid. Dr. Peter Leeson and Dr. Russell Sobel of West Virginia University wrote Weathering Corruption arguing that disaster-prone states such as Mississippi, Florida and South Dakota are the most corrupt.
This is all due to free money which pours into such states in the form of aid. The Economist wrote, "A windfall of federal cash spwans graft in much the same way that oil wealth or foreign aid can cause corruption in poor countries."
Voila!
Leeson and Sobel came up with a calculation that "in the average state, an extra $1 per person in money from FEMA increases corruption in that state by 2.5%."
Related links
Peter Leeson et al blog
Russell Sobel’s http://www.be.wvu.edu/divecon/econ/sobel/
Sokari of Black Looks on [mis]definition of corruption
Transparency International’s corruption barometer
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posted by Fikirte @ 2:11 PM
 
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