CHANGE IN INSTITUTIONAL ARRANGEMENTS FOR CORRUPTION CONTROL IN MACAU
BACKGROUND AND RATIONALE
Currently, Macau has been facing a serious corruption problem. One of the biggest corruption cases was with a Macau Official who was found guilty of corruption. (Ex-official, 2008) This only shows that the corruption in Macau seems to be growing in rate.
According to a news article, Macau has exceeded Las Vegas by becoming the world’s gambling capital. It was also stated that Macau seems to be enjoying their rapid growth in terms of gambling and has had violent clashes on the International Labor Day. This is an indicator that Macau is becoming socially ill. (Gambling, 2007)
Although Macau is still not yet listed in the top most corrupt nations, the increasing number of corrupt issues in the country is becoming a concern. Corruption is known to halt the economic growth of a nation. And the major factor that creates corruption are problems with laws against it. (Corruption, 2003)
Thus, the current pressing problem with corruption in Macau may have some something to do with the laws that bind the institutional arrangements and economic partnerships of business establishments and the government.
According to a research, there are three basic reasons that hinder that development of the country because of corruption. Those are poorly designed anti-corruption laws and mechanisims, lackadaisical enforcement of existing laws and mechanisms and the evolution cultural norms that accept corruption as a way of life and doing business. (Design, 2003)
Thus, it is important to analyze the laws that bind the business sector and the government in terms of incentive compatibility.
CACC or Commission against Corruption is a public entity dedicated to fight corruption. This entity also carry out the function of the Ombudsman. The organization was founded since December 20th, 1999. The organization mainly promotes several programs. Those are anti-corruption, prevention, proposal of the enactment of normative acts and education”. (CACC, 2008)
The rationale of this study basically aims to look into the bottom of the institutional structures and analyze whether the framework used by the business institutions of Macau are compatible to them.
RESEARCH QUESTIONS:
This study will answer the following questions:
RESEARCH OBJECTIVES:
This study will answer the following objectives:
METHODOLOGY:
The study will basically be comparative in nature since it will use other countries as comparisons such as Taiwan, Mainland, Hong Kong and Macau. The history of corruption of the mentioned countries will be scrutinized and compared and contrast to one another to properly find out the differences of their
Institutional arrangements and economic partnerships.
After the comparison, this study aims to evaluate which among the countries are successful and failure in combating the corruption problems in their nation. The successful and failure will be assessed based on “incentive compatibility.”
On the conclusion, this study aims to come up with a particular recommendation on the ideal business structure and partnership that would possibly work on Macau, based on incentive compatibility.
Those nations who are successful in evading corruption are considered incentive compatible while those who are not are considered incentive incompatible.
Incentive compatible is when the sanctions are fair to each participant. For example, Czech’s anti-corruption law is called “incentive incompatible.” It is because under certain conditions, the law allows someone who offered or promised a bribe to report the situation to the police and he or she can get out of it with out any sanction. However, the person who accepted the bribe might stay in prison for a considerable time. (Designing, 2003)
This study will be beneficial to Macau, specifically and to other countries as well who are facing the same problem.
REFERENCES
Ex-official in Macau, guilty of corruption. (2008) [Online Source] Available at http://www.taipeitimes.com/News?pubdate=2008-01-31
CACC. (2008) http://www.ccac.org.mo/en/ last update 03-11-2008
Designing and Testing Incentive-compatible and Effective Anti-Corruption Measures. (2003) Regional Research Competition. [Online Source] Available at http://home.cerge-ei.cz/ortmann/PAPERS/GDNgrantprop2003.PDF
Gambling and corruption accused of ruining Macau. (2007) Ecumenical News International. [Online Source] Available at: http://www.ekklesia.co.uk/node/5238
Credit:ivythesis.typepad.com
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