Not All Monopolies Are Fun and Games
By Russ Warner, VP Marketing & Operations –
When monopolies are allowed to play with the economy, corruption wins the game.
Monopoly is one of the world’s most popular, best-selling games. People spend millions of hours every year building make-believe empires in the hopes of making their opponents go bankrupt. In a cruel twist of irony, one of the world’s favorite games is also one of its biggest problems.
Real-life Monopolies are a key contributor to corruption levels. They create inefficient markets and force the government to grant special privileges. For monopolies to maintain dominance, they turn to governments for protection. These government entities increase intervention in the economy by passing legislation that prevents the entry of other players. This in turn stunts economic growth and forces citizens to look for alternative ways to make money, creating a cycle of corruption.
A Breakdown of Corruption Categories
According to a study by the Organisation for Economic Co-operation and Development (OECD), two thirds of corruption cases are found in four sectors: mining, transport, construction, and communication and information. In Europe alone, annual losses total approximately 120 billion Euros; it is assumed that by 2020, losses caused by corruption just in the construction sector will total $2.5 trillion dollars. Considering the fact that the world is extremely dependent on these four sectors and with the population expected to reach 9 billion by 2075, these corruption statistics will only continue to grow.
Often times, people associate corruption with developing countries and populist governments. Obviously, weak institutions are more prone to corrupt behaviors. However, the OECD reported that 57 percent of all corruption cases worldwide directly involved the government —an alarming statistic for countries with strong government institutions.
Do Not Pass Go, Do Not Collect $200
What can be done to reduce corruption and eliminate monopolies, or at the very least reduce their control? An effective method could be passing legislation and restrictions on monopolies. While taking people to court may have a deterring effect, the only way to get rid of monopolies is to disrupt their market and create competition. By defeating monopolies, countries can reduce their overall levels of corruption and improve their economy.
Another effective tool is EyeDetect®. This new technology is the newest lie detector and it that can determine with 85 percent accuracy whether a person is lying. Government organizations that use EyeDetect can learn which employees are accepting bribes from monopolies. This information can let them know which employees to discipline, including firing. By taking steps to combat corruption, governments can send a message that corrupt behavior will not be tolerated. By implementing regular EyeDetect screenings, money lost to corruption will greatly decrease and countries can finally move forward once again.
