When Influence Trumps Ability Forget Investment

In 1503, Giuliano della Rovere bribed all but three of the College of Cardinals in order to become Pope. The "investors" who allowed him to secure this position expected a handsome return on their financial support and, as Julius II, he ruled the world's most powerful and wealthy organisation for 10 years.

Bribery in order to secure high office, and the corruption that follows, is hardly new. The impact that corruption has on the wellbeing of the people ruled by corrupt systems is less known.

The African Union, in a widely publicised 2005 report, estimated that corruption in Africa costs 25% of GDP, or $148 billion a year.

In a free-market economy - protected by laws that are applied equally to both rich and poor, and administered by courts that are independent of outside influence and themselves monitored for corruption - business is based on value and on market demand. The most successful business people are those with the best ability to produce quality goods at a price that people are willing to pay.

The alternative to this mutual exchange of value is a reliance on the favour of the mighty. Instead of success going to the most able, it goes to people with influence. Who needs to build safe houses if you can bribe building inspectors? Who needs to compete for tenders if you can pay the awards committee to give you the contract?

Every society battles with corruption. US President, Barack Obama, vacated a Senate seat in order to take up his new position. Illinois Governor, Rod Blagojavich, was indicted for fraud after attempting to sell that position to the highest bidder. Italian Prime Minister, Silvio Berlusconi, reduced the statute of limitations while in office to ensure that charges of corruption levelled against him lapsed.

When it becomes apparent that the favour of the highest office in the land can be bought then no part of society is safe from corruption. Oil wealth is siphoned off by bureaucrats and politicians. Mining and agricultural rights are given away in back-door exchanges. Buildings collapse due to ignored safety standards. People are made into slaves in dangerous factories.

Everything is up for grabs, sold by people who have no ownership of that which they sell.

Corruption can be likened to the tale of two brothers who owned a pub in a rural village. They travelled by horse-cart to the nearest big town to buy a barrel of beer. The day was hot and one turned to the other and said, "I'm really thirsty."

"Well, if you pay me R 10, I'll draw you a pint."

"That makes sense," said the first brother, and hunted in his wallet to find that he had exactly R 10. He paid and his brother produced his pint.

While watching his brother drink, the second brother too developed a thirst. Remembering the R 10 in his pocket, he bought a pint from his brother.

And so they went, trading the R 10 back and forth between them and drinking until they got home. Then they discovered that they had only R 10 in total and all the beer was finished.

That's what corruption does. It trades influence for value until there is no value left. The people of ability are gradually driven out of business while the people of influence prosper. This works until there is nothing left to steal, which can take a long time. Even in Zimbabwe there is still enough left to steal to make power worth fighting over.

The National Prosecuting Authority has been shown to be hopelessly entangled with competing political interests. If the critical organisation tasked with impartially prosecuting offenders, irrespective of their social position, is now broken then we are on the path to where ability loses its value and we are forced to compete for the favours and influence of the mighty.