Andrei Shleifer and Robert W. Vishny define government corruption as the sale by government officials of government property for personal gain. Government officials think about themselves and use their authority for personal gain by collecting money from people who pass illegal goods from the boarders. These officials ask for money in exchange to get visas, permits, passports and licenses for illegal people. Thus, they collect bribes from private agents. It is believed that well-organized corruption by the government is more distortionary than taxation. However, researchers have concluded that corruption is a major factor in slowing down the development of countries. (Gould and Amaro-Reyes, 1983; United Nation, 1989; and Klitgaard, 1991). Indeed, in early 1900s there have been allegations that government corruption has been happening in Britain. John Major’s Conservative government fell from office after thirteen years of power and also was considered to have low ethical base of British public life. (John Moore and John Smith, pg. 4). According to James Moore and John Smith, corruption seems as old as public life itself; hence, corruption is problematic because it crosses the boundaries between public life and personal interests.
In the early 1900s third world countries were just starting to progress and the government expanded the country’s development by indirect taxation, exchange rate manipulation, profits of state enterprises and borrowing, and did not involve any direct confrontation with traditional power groups.(such as increasing direct taxes). (Rosemary Thorp and Inter-American Development, pg. 7) Since countries like Haiti, Peru, Guatemala, Belize, Jamaica and Nicaragua are developing countries and they depend much in Agriculture, the government officials try to take advantage of their position and bribe farmers. They also, give permits for people to