In consequence, the civil services of many Third World nations operate as feudal baronies, exploiting those with whom they deal. In the absence of in… - Neil H. Jacoby

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In consequence, the civil services of many Third World nations operate as feudal baronies, exploiting those with whom they deal. In the absence of institutions or organized groups capable of restraining official venality, the employees and officials of these bureaucracies possess virtually untrammeled power for obtaining personal wealth.

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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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Political payments by multinational companies in foreign nations have long been a pervasive practice; but a cultural taboo against discussion of the subject, combined with a lack of public information, has created a vacuum in public understanding.

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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The media have tended to emphasize the notion that it is the American company that initiates the bribe, without laying any emphasis on the fact that around the world, for hundreds of years, companies from other countries have been making payments and paying bribes, and that usually the reason they have done so is that they have been solicited or extorted by politicians and government employees. To point this out is not to negate the blame for making the payments and paying the bribes, but simply to make it clear that in many, if not most, cases the payments are made under duress. All other things being equal, an American business manager would rather avoid the costs of bribes.

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