Topic-Challenges of corruption.
7) In order to tackle corruption in a better way, it should be viewed as a collective action problem rather than recognizing it as a principal-agent problem. Comment.(250 words)
Why this question
The article brings in a paradigm shift in our perception of corruption and provides a possibly better way of handling it.
Comment- here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.
Key demand of the question.
The question wants us to think carefully about the given statement and make an opinion in favour or against it- whether in order to tackle corruption in a better way, it should be viewed as a collective action problem rather than recognizing it as a principal-agent problem. We have to form our opinion based on a proper discussion elucidating our arguments in its support.
Structure of the answer
Introduction- briefly describe the concept of principal-agent problem. E.g A principal-agent problem is a problem in which one or more actors (individuals, organizations etc. )–the “agents”–are entrusted with authority to act on behalf of some other individual, group, or cause (the “principal”). Anti corruption measures under this understanding provide solutions which typically include oversight mechanisms to inform the ‘principals’ and sanctions to incentivize the ‘agents’.
- Briefly discuss the and collective action problem. E.g A collective action problem involves a situation in which some group of actors would all be better off if they could all choose some action, but for any one individual, that individual would be better off “defecting”.
- Discuss whether it is better to recognize corruption as a collective action problem rather than a principal-agent problem. Take the help of the articles attached to the question to frame your discussion.
Conclusion- Based on your discussion, form a fair and a balanced conclusion on the given issue.E.g corruption is both a principal-agent problem as well as the collective action problem and needs to be tackled on both the fronts by devising proper strategies and policies and involving all the sections of the society etc.