ECONOMIC GANGSTERS ECONOMIC GANGSTERS Corruption, Violence, and the Poverty of Nations (cid:189) Raymond Fisman and Edward Miguel PRINCETON UNIVERSITY PRESS PRINCETON AND OXFORD Copyright © 2008 by Princeton University Press Requests for permission to reproduce material from this work should be sent to Permissions, Princeton University Press Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, 6 Oxford Street, Woodstock, Oxfordshire OX20 1TW All Rights Reserved Library of Congress Cataloging-in-Publication Data Fisman, Raymond. Economic gangsters : corruption, violence, and the poverty of nations / Raymond Fisman and Edward Miguel. p. cm. Includes index. ISBN 978-0-691-13454-3 (hardcover : alk. paper) 1. Corruption—Economic aspects. 2. Political corruption—Economic aspects. 3. Smuggling. I. Miguel, Edward. II. Title. HV6768.F57 2008 364.1'323—dc22 2008025208 British Library Cata loging- in- Publication Data is available This book has been composed in Goudy Printed on acid- free paper. ∞ press.princeton.edu Printed in the United States of America 1 3 5 7 9 10 8 6 4 2 For Ellie For Ali Contents (cid:189) Chapter One Fighting For Economic Development 1 Chapter Two Suharto, Inc. 22 Chapter Three The Smuggling Gap 53 Chapter Four Nature or Nurture? Understanding the Culture of Corruption 76 Chapter Five No Water, No Peace 111 Chapter Six Death by a Thousand Small Cuts 136 Chapter Seven The Road Back From War 159 Chapter Eight Learning to Fight Economic Gangsters 186 Epilogue Doing Better This Time 207 Ac know ledg ments 211 Notes 215 Index 235 ECONOMIC GANGSTERS
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