When the Rule of Law Is Not Working

Corruption in general has a deleterious effect on the readiness of economic agents to invest. In the long run, it leads to a paralysis of economic life. But very often it is not that economic agents themselves have had the bad experience of being cheated and ruined, they just know that in this country, or in this part of the economy, or this building scene, there is a high likelihood that you will get cheated and that free riders can get away with it. Here again, reputation is absolutely essential, which is why transparency is so important. Trust can only be engendered by transparency. It's no coincidence that the name of the most influential non-governmental organization dealing with corruption is Transparency International.

KARL SIGMUND is professor of mathematics at the University of Vienna and one of the pioneers of evolutionary game theory. He is the author of Exact Thinking in Demented Times: The Vienna Circle and the Epic Quest for the Foundations of Science. Karl Sigmund's Edge Bio Page