Introduction: The costs of corruption Part I: Corruption as an economic problem The economic of corruption Payments that equate supply and demand Bribes as incentive payments for bureaucrats Bribes to reduce costs Organized crime and corruption Corruption of high level officials Payments to obtain major contrats and concessions Privatization Reducing incentives and increasing costs Program elimination Etablishing a credible privatization process Reform of public programs Competitive pressures in administration The deterrent effect of anticorruption laws Procurement reform Reform of the civil service Pay reform Conflicts of interest Carrots and sticks Corruption in hierarchies The rediscovery of contract Part II: Corruption as a cultural problem Bribes, patronage, and gift giving The similatory of bribes, and economic development Part III: Corruption as apolitical problem Corruption and politics Kleptocracy Bilateral monopolies and mafia dominated states Competitive bribery Democracy and corruption: incentives and reforms Electoral systems Buying political influence and buying votes Controlling political power Checks and balances in the legislative process Accountable implementation Federalism: exit and voice Independent judicial and prosecutorial institutions Openness and accountability Part IV: Achieving reform The role of the international community Controlling corruption in development projects Supporting reform Limiting corruption in international business Controlling money laundering and international criminal enterprise New international institutions Conclusions: policy fads and policy reforms Domestic conditions for reform Political structure and reform Scandal and crisis as catalysts Natural resource wealth and foreign aid Demands for reform Sustaining reform