Blaming Corporations

The Wall Street Journal reported that Hewlett-Packard is being investigated by German and Russian authorities for allegedly paying $11 million in bribes to win a contract to supply computers and related products to the office of the prosecutor general of Russia.
It is against the law for U.S. companies to pay bribes, so of course HP shouldn't do so. But it is important to understand, if the allegations are true, that government officials have the greatest culpability for bribery.

It is the government official who wields both the power to decide who wins the contract AND who can use the power of government to aid or punish would-be contractors. Those two elements create a powerful position from which corrupt government officials can extract bribes.

Moreover, as the scope of government power over the economy expands, the opportunity for bribes increases. The best way to reduce bribery is to reduce the role of government in the economy.

By all means we should hold HP and other companies responsible for paying bribes. But government policies and officials who create the conditions for, or demand payment of, bribes need to be held most responsible for such corruption.