But economists have concluded that bribes act like a tax on an investment or a transaction. Many executives never know when they have given the last bribe needed to get a job done. U.S. officials responsible for development aid and trade also see mounting evidence of corruption's toll. Procurement fraud rakes off funds that should develop national infrastructure, as witnessed in the half-built schools and roads dotting the developing world. Precious national assets are sold to cronies at below-market prices.
Tax revenues dry up.
The poor of the developing world are hit worst, for they are the least able to pay extra for medicine, schooling, and telephones. In Venezuela, even access to basic services can depend on paying a bribe. They are being suspended, you are told, due to a shortage of security paper. That, too, can be bought. For some firms, corruption can become unbearable.