In many foreign nations, especially those in the Third World, political and social evolution has been such as to produce a monolithic state that lack… - Neil H. Jacoby

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In many foreign nations, especially those in the Third World, political and social evolution has been such as to produce a monolithic state that lacks any clear division between a public and a private sector. Indeed, throughout much of the world today, official political ideology is hostile to the concepts of the private-enterprise market economy.

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About Neil H. Jacoby

Neil Herman Jacoby(September 19, 1909 – May 31, 1979) was a university professor and public servant and was widely recognized as an expert on matters of taxation, finance, economic policy, and business-government relationships.

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Alternative Names: Neil Herman Jacoby N. H. Jacoby

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Lubrication payments are not subject to a going rate. They are usually determined by what the traffic will bear. The usual way for a government official to extract a payment is by threatening obstruction or delay in carrying out his official duties… Large political payments are rarely transferred directly by a principal to an upper echelon official; rather, a middleman is used. He may be a professional ‘fixer’ who is himself a low-level government functionary; more often he will be a member of the same family as the high-level recipient.

Political influence is exerted differently in the industrialized countries than in the agrarian, preindustrial societies. In the former, demands by individuals and special interest groups normally reach the political system before the enactment of legislation. Indeed, legislation is usually a consequence of such demands. Bribery of officials by businessmen is considerably lessened by the existence of open channels for the exercise of political influence.

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It would be virtually impossible to obtain proof outside the United States that foreign companies were making payments to officials of foreign governments to assist them in obtaining business. American companies may engage in mea culpa breastbeating in this country, but it is not a popular addiction abroad.

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