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2007-11-12 Iraq

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Posted by Glenmore 2007-11-12 13:04|| || Front Page|| [3 views ] Top

#1 Even if there were no corruption, the administrative cost of these kinds of programs is very high which is why it is preferable to have them run by non-govt. orgs.

One kicker here is that interest is forbidden in Islam so in addition to the corruption problem and the administration problem, there are costs involved in creating legal shells to make the money 'halal'.

Posted by mhw 2007-11-12 13:13|| 2007-11-12 13:13|| Front Page Top

#2 There's ALWAYS corruption in government aid programs, and it tends to be worse in Islamic countries. That's why my 'optimistic' number was 20%. I just worry the pessimistic number of 99+% might be true, making the whole exercise counterproductive in the long run.

Posted by Glenmore">Glenmore 2007-11-12 13:23|| 2007-11-12 13:23|| Front Page Top

#3 The trick is to persuade the government that they will make *more* money high-ending the program than low-balling it. That is, if they rip off the money, they get say $100, but if they use it for patronage, they can maybe get $10,000, and their family and tribe jobs, in the deal.

That is the real way to kill corruption, by making it so profitable to not be corrupt that only an idiot does it. It is one of the great hidden maxims of business.

Posted by Anonymoose 2007-11-12 15:41|| 2007-11-12 15:41|| Front Page Top

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