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Old August 19, 2003, 10:55 PM
deshitrader deshitrader is offline
Club Cricketer
Join Date: January 24, 2003
Posts: 157

This bit of news about the magnetic train idea has been reported in the Bangladeshi papers for the last couple of weeks. From what I have heard thus far, it sounds like a very bad idea...and suggests that something is not quite right in this proposal (think probable cause of potential corruption). I think the PERC has done a good service to the nation in documenting some concrete facts about the idea. And I think that is what we need to do to attack corruption. If one makes indiscriminate allegations without probable cause, that tends to dull the efficacy of allegations against corruption in general...and can have the perverse effect of actually hurting the fight against corruption.

The Bangladesh economy in 2001 was worth about $49 billion in exchange-rate converted terms and about $213 billion in purchasing power parity (PPP) terms (PPP adjusts for differences in price levels across countries). The Tranparency International estimate of a $16 billion annual loss from corruption is likely calculated on a PPP basis. That would put it at about 7.5% of GDP, which is still a substantial figure. The estimate likely includes the loss in efficiency to the economy from corruption, not merely the actual number of dollars pocketed by corrupt individuals. While a number of countries with high levels of corruption (e.g. Indonesia) have developed rapidly, I do agree that corruption is a massive problem in Bangladesh and we need to do whatever possible to minimize its impact on the economy.
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