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The Nature of Corruption in Forest Management

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Abstract

Corruption is a well-documented and common feature of natural resource management in the developing world. This article investigates the nature of corruption and whether or not there is such a thing as a ‘tolerable’ level of corruption, particularly where there is an established culture of patronage. Using the log trade in Indonesia as a study in rent-seeking transactions, this article shows that a failure to account for the incentives underlying rent-seeking undermines forest policy. Also, attempts to eliminate corruption are doomed to failure. Instead, policymakers should seek to understand the nature of corruption in seeking to move from rent creation to wealth creation.

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  • Charles Palmer, 2005. "The Nature of Corruption in Forest Management," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(2), pages 1-10, April.
    • Handle: RePEc:wej:wldecn:204
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    File URL: https://www.worldeconomics.com/Journal/Papers/Article.details?ID=204
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    Cited by:

    1. Delacote, Philippe & Palmer, Charles & Bakkegaard, Riyong Kim & Thorsen, Bo Jellesmark, 2014. "Unveiling information on opportunity costs in REDD: Who obtains the surplus when policy objectives differ?," Resource and Energy Economics, Elsevier, vol. 36(2), pages 508-527.
    2. Tim Laing & Luca Taschini & Charles Palmer & Johanna Wehkamp & Sabine Fuss & Wolf Heinrich Reuter, 2015. "Understanding the demand for REDD+ credits," GRI Working Papers 193, Grantham Research Institute on Climate Change and the Environment.
    3. Laing, Timothy & Palmer, Charles, 2015. "Economy-wide impacts of REDD when there is political influence," Resource and Energy Economics, Elsevier, vol. 40(C), pages 107-126.
    4. Palmer, Charles, 2011. "Property rights and liability for deforestation under REDD+: Implications for 'permanence' in policy design," Ecological Economics, Elsevier, vol. 70(4), pages 571-576, February.
    5. Amacher, Gregory S. & Ollikainen, Markku & Koskela, Erkki, 2012. "Corruption and forest concessions," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 92-104.

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