How much corruption is too much?

The public learns about the corruption, only to discover that the authorities never followed through.

On May 12, at an investment conference, Prime Minister Pushpa Kamal Dahal vowed to improve the investment climate in Nepal. Odds are that he was just paying lip service to the crowd he was addressing. Many decision makers—elected and non-elected both—have made similar promises in the past, yet foreign direct investment remains subdued. If, say, Dahal is serious this time, one way he could help create an investment-friendly environment is by helping create a society where corruption is looked down upon. Globally, Nepal ranks very high in corruption. For foreign investors, corruption and the associated bribes constitute a hidden cost—a stealth tax—which raises project and/or operational costs.