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> It's actually kind of disturbing how there are basically only a handful of countries on the planet without systematic corruption. Maybe there are none. Perhap
by MikePlacid 4y ago
> It's actually kind of disturbing how there are basically only a handful of countries on the planet without systematic corruption. Maybe there are none. Perhaps it's a human trait.
More disturbing (to me) is how easy it is to eliminate corruption in any given area - without any brutality or anything else extraordinary. Just setup the process correctly, incentivize workforce - and the same people who were building roadblocks to milk money will switch to earning money by helping you get your task done.
There was a “widely known in narrow circles” libertarian setup in Troitsk, Russia - of all places. The setup was related to the topic of the original post - registration of businesses. The post-Soviet business registration law was rather liberal. The amount of documents needed was not zero, but doable. But there was a catch - businesses should have been registered locally, and each locality was allowed to add their own requirements on top of federal ones.
You can imagine what followed. Our own city, the I was a counsel member was: just prove to us (“us” in reality means -a clerk) that your business will be useful to the city - and we will register you. But there was a small city named Troitsk, home to some physics scientific institutions, which elected a libertarian mayor, Gennady Lebedev. The city council decided not to ask for any additional documents and just register any business that complied with federal guidelines.
But - any clerk has any good intention in his own hands, right? Mayor said: register everyone? but I am too busy, come tomorrow, and by the way go to… uhm police station, do a background check on yourself for me, I feel a sudden need to be extra cautious in your case. Why not? Seen it everywhere, like you’ve said.
Here comes handy a proper construction of checks and balances:
1. Salary for registration office clerks was paid from a percentage of the (federally fixed) registration fee, nothing else, no safety cushion. If you delay an application- your salary will be delayed too. In the starving Russia that percentage created a - potentially - extremely well paying job.
2. The clerk will be fired if he asked - not just for any unnecessary documents, but just for asking any legally unnecessary question.
3. The clerk will be also fired if he accepts a registration that does not confirm to federal guidelines.
So clerks have the incentive to work fast, help people correct their documents to comply with the federal law and the opportunity for any additional “milking” was too risky and simply not worth it. In short time - small Troitsk had more businesses registered than any other small city in Russia, and comparable to Moscow. Imagine a tax base they’ve got?
First-hand account by Gennadi himself here (in Russian): http://www.sapov.ru/g_v_lebedev/texts/gvl1992_12_troitsk01.htm http://www.sapov.ru/g_v_lebedev/texts/gvl1992_12_troitsk01.h...
- TremendousJudge 4y ago>2. The clerk will be fired if he asked - not just for any unnecessary documents, but just for asking any legally unnecessary question. >3. The clerk will be also fired if he accepts a registration that does not confirm to federal guidelines. Fired by whom? Who is in charge of checking this? How do you ensure that the clerk isn't just accepting false businesses and giving a percentage to whoever's above? On its face this system doesn't seem to cure a culture of corruption to me
- bluGill 4y agoyou can audit a small number and know. sure the clerk can risk one, but statistically they are caught with enough.
- TremendousJudge 4y agoBy "you" you mean a regular Russian citizen? Who is in charge of the clerks under this system, and what ensures that they aren't as corrupt as before?
- bluGill 4y agoI mean the mayor. You can also hire independent auditors. As a person just keep electing mayors unrelated to the last and hope they expose each other.
- MikePlacid 4y ago> How do you ensure that the clerk isn't just accepting false businesses and giving a percentage to whoever's above? What do you mean by a “false business”? Here in the US the state of Nevada have not asked me anything except Articles of Incorporation (the state of California later found my file and… also has not asked me anything except $800 a year - which exactly what I was hoping to avoid by filing in Nevada, lol). Number of federally required papers was 0 (zero). Federal regulations in Russia required much more paperwork. But the libertarian city council in Troitsk just deliberately didn’t care to add anything to the pile. Bad documents - it was actually a problem for the business being registered. If federal regulators caught a discrepancy- the business will be in a huge trouble. So checking the documents- it was nothing more than a service provided by a city council to the company being registered. If the documents were inconsistent - the business will complain. This setup really worked, as I said in the original post. It’s not a theoretical suggestion.