Unstable Leadership
As much as bribery is bad in any society, it is the "norm" in developing countries. Whether it is a firm or a country on itself, bribery is sought in every level and scope of any organization in developing countries. The game is, if you cannot beat them, join them. It is the order of doing business, getting business done, obtaining contracts, getting employment, making connections, and belonging to high social classes, to list a few. This has led to leadership failures, corruptions, venality, neglected projects, economic and political instability, cultural and ethical demise, poverty, and to the dismay of developed countries eliminated middle class.
In the utterly malaise, the rich individuals are getting filthy richer, while the poor ones are getting hopelessly poorer. It seems that it will never go away due to decades of habitual behaviors and practices of the inexperienced leaders and those to whom are entrusted with the welfare of these countries. One thing is obvious, as long as the donor countries do not demand accountability, and do not use the third party privatilization approach of collateral to get economic and market projects accomplished, none of these countries will sit up and focus on what is good for their respective citizens.
The solution to bribery needs to start from the top to the bottom, the top representing the countries, while the bottom represents the firms. It is risky and sometimes deadly to begin the implementation of solutions from the bottom. No one country will outlaw or ban bribery if the leadership is corrupt and seeks bribe. Rather, leadership will resort to pay-offs from the firms. Funds are abused when given directly without supervision to these countries. Without independent organizations to oversee, manage, and disburse the funds, there is little doubt that these countries will ever be fixed economically.
The burden will continue to rest on the developed countries, and discussion of eradicating poverty will remain the focus of the global discussion. It is also important to remember that most unrest comes from the years of chronic and abject poverty and frustrations on the part of the citizens, and, bribery and corruption on the part of the leadership. When citizens cannot take it any longer, they resort to unrest, and sometimes revolution and that too will require the involvement of developed countries. Therefore, in order to "make haste while the sun shines", the developed countries ought to reverse the thinking of the leadership in developing countries before they can pass it on to those firms in the same environment.
Third Party Guarantee
There is always good intention in aiding and helping developing countries, but in these countries, no one economic theory is sufficient to accomplish the economic goals that are set to implement. The application approach in developed countries requires "all things being equal" in order to work perfectly. However in developing countries, all things are not equal due to bribery and corruption that are always added to the equation. So, added words such as "third party collateralization" need to be included in the equation in order to limit or reduce bribery and corruption. "Third party collateralization" represents independent contractor or theory developer. It may be mandatory for countries wishing to obtain loans or funds to use it as collateral to ensure successful completion of the expected projects.
Third party collateralization represents the use of independent private organizations to guarantee the implementation of projects. More often when funds are given directly to developing countries, the funds are diverted to private use by the leaders. Therefore, to ensure that the funds given to these developing countries are used appropriately and as directed, it becomes necessary to use third parties as collaterals. The third party becomes the guarantor that guarantees that the funds will not be abused but rather put to use as proposed. The third party will also act as the contractor for the implementation of the project, and at the same time refund the funds if mismanaged.
The contractor or model developer may be responsible for providing and implementing achievable projects, while under the supervision of World Bank representatives. If World Bank is interested in accomplishing projects for which funds are allocated in developing countries, then it is appropriate that it sees to it that funds are distributed or lent accordingly. It is also irresponsible for World Bank to lend funds to these developing countries only to see incomplete and unachievable projects, and in turn leave these countries with huge debt that will further sink them in a dipper hole. Most leaders in developing countries may reject this idea because it shuts off any room for embezzlement, venality, and waste, which is their main intent in applying for the loan or funds in the first place. In the end, the poor gets poorer, while the rich gets richer.
