Sunday, May 24, 2009

Day 4: U.N. Global Compact, Corruption case

Global Compact... Panama firms that are members, Banco General and its Social Report for 2007. This could be one of the student projects.

Reasons to Join and Reasons not to Join.

El Rancho Chicken Farm, courtesy of Eduardo Schmidt.

we discussed each of the dilemmas, “options” to the chicken farm manager.

a lot of interesting discussion, particularly about the $100 bribe to be paid to the government official that would enable the farm to buy more dollars which enables them to buy more feed. Also the “dynamic agent” fee to facilitate shipment of feed and delay that of competitors.

there was some concern that the agent might not be reliable, that is that he would go to the highest bidder. this would be dangerous.

I asked pointedly that I wanted to use this case because it was from this general part of the world and might come closer to representing Panamanian business practices. does this happen here? all the time they answered. they were anxious to give me examples. corruption and bribes occur all the time, it’s more difficult to find an occasion when it’s not used.

Then I asked, suppose I’m the new president of Panama. along with several close aids I visit the U.S., Canada, U.K. and other countries known for having the lowest levels of corruption. We spend a lot of time learning how governments fight corruption and we come back with some good idea. it will be difficult, it will be hard, but we think we can do it.

Do you wish us success? Do you want Panama to change? the answer for the most part was “no”.

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