Bribery is deep-rooted in the cultures of many nations. It distorts ma

Bribery is deep-rooted in the cultures of many nations. It distorts market mechanisms and creates unfair competitive advantages for certain firms, and hence, leads to an inefficient allocation of national resources. Although bribery is officially frowned upon throughout the world (including those countries in which it is extensively practised), it is not illegal in a number of countries. Inducements paid to public servants are subject to particular criticism, as in this case, it is the innocent taxpayer (rather than private shareholders) who ultimately foots the bill. Across various nations, acceptance of bribes by government officials results from the historical tradition of ‘prebendalism’ i.e., the charging of fees by holders of public positions who receive only a nominal stipend. Governments overlook petty corruption on the part of junior offcials because otherwise, they would have to increase the latter’s wages to levels sufficient to induce them to remain in their jobs. Nations with poorly developed tax systems do not have the wherewithal to fnance an extensive civil service and thus, implicitly rely on public officials supplementing their meager salaries by taking unofficial gratuities.

Large-scale bribery in advanced industrial countries results, perhaps, not from pernicious intent on the part of the bribers, but rather from the fact that so many Western markets are dominated by a small handful of firms in uncompetitive environments, i.e., it is lack of genuine competition within a sector that is the root cause of corruption. Bribery in this situation is little more than a natural business response to a particular situation. In many of the less developed nations, bribery is accepted as a normal part of business life. Bribes are not considered to be ‘corrupt’ payments, but rather fees for commissioning a service—just like any other service fee or personal commission. Equally, low-value payments might be seen as the equivalent of the ‘tips’ conventionally given to waiters, waitresses or taxi drivers in developed countries.

The case for adopting a liberal approach towards bribery can be based on the following arguments:

(a) Distinguishing between a ‘bribe’ and a ‘gift’ is problematic. Note how the giving of small gifts is very common in Western countries. But what constitutes a ‘small’ gift and where should the line be drawn between low- and high-value items? An expensive gift to a managing director with a million pound annual salary might be considered reasonable, yet the same gift to a lower-rank employee could be deemed as corruption!

(b) There is, in reality, no reliable means for ensuring that all gifts are reported, so why bother attempting to control the practice?

(c) Firms not engaging in bribery in some countries stand to lose money, resulting in job losses and other detrimental economic effects on the host countries concerned.

1. What is the central idea of the passage?

(A) Bribery as a conventional practice in developed countries.
(B) Considering acceptance of bribes as a wrong practice.
(C) Acceptance of bribes across different cultures.
(D) Bribes as an accepted norm in the business world for government officials.
(E) Merits and demerits of deep-rooted bribery and how the adoption of a moderate approach is debatable.


2. At times, even the concerned authorities tend to overlook minor cases of corruption. This is because:

(A) bribes help keep the officials engaged in the job.
(B) bribes are now accepted as normal in the business world.
(C) bribes are sometimes the sole means of earning a good income.
(D) bribes are accepted as a personal fee equivalent to a tip given to a waiter or a chauffeur.
(E) bribes act as a substitute for an incentive for junior offcials who would otherwise find the jobs low-paying.


3. From the passage, it can be inferred that:

(A) bribery is more widely accepted in developed nations.
(B) bribery is vital for the survival of many big and small firms.
(C) there is little difference between a ‘bribe’ and a ‘gift’.
(D) accepting bribes has become a part and parcel of the world today.
(E) inducements being paid to the people are drawing greater criticism worldwide.


4. The author agrees with all the following statements EXCEPT:

(A) Bribery is just a normal business response.
(B) Bribery is frowned upon only in developed countries.
(C) Concluding deals without bribery is becoming difficult these days.
(D) Not being engaged in bribery can lead many firms to economic losses.
(E) Bribery in industrial countries results when some firms function in an uncompetitive environment.