[ip26]

Why?

The explanation I've heard before is that when you need anything from a thoroughly corrupt government, as simple as a building permit or a visa for a foreign employee involved in a project, officials will simply not process your request without a bribe. They believe it is owed. End of story.

I don't like the explanation in the slightest. But I do see how it might shut down opportunity if you can't overpower the obstacles, and aren't willing to bribe.

The utility of US laws against bribing foreign officials is to break down the expectation by those officials of a bribe. But, from a game theory point of view, if China is willing to bribe, this becomes much less effective.

[unix_fan]

The same happens in Latin America as well. If you want to get through the layers of bureaucracy without being stuck for years in a process, you have to pay up. And it has to be a well-connected government official. That’s mostly the reason I don’t bother with anything entrepreneurship related here.