Book Review: Chapter 5: Reducing Corruption: Transaction Governance Capacity
Book: The Fortune at the bottom of the Pyramid
Author: C.K. Prahalad and Stuart L. Hart
Library Reference: N/A
Amazon Reference:
http://www.amazon.com/Fortune-at-BottomPyramid/dp/B00006L5AW/ref=sr_1_2?ie=UTF8&s=books&qid=1232066330&sr=1-2
Learning Expectations:
- Expect to learn the effects of corruption in terms of BOP Concept
- Difference of corruption and local practice.
- Identifying the question “Are the Poor, poor?”
- The center for Good Governance
Quote:
“Most developing countries do not fully recognize the real costs of corruption and its impact on private-sector development and poverty alleviation”
The quote I chose is pertaining to the developing countries. This is stating that the developing countries do not recognize the real costs of corruption in their respective country. I agree with this statement because no one knows who did this, who did that, clueless when they are talking about corruption. Even the highest position in an organization or in a country don’t provide answers for that because they want to be safe in malicious issues about them or so called “Playing Safe” They don’t know the effect of corruption into the private-sector.
Review:
Corruption is the number one problem in a particular country especially for those states that are still developing countries. Countries consider this as a number one problem and they need to fight this for change. For example, the Philippines is ranked as the most corrupt countries in Southeast Asia and considering that we are the only Christian nation in Southeast Asia. It is hard to accept the reality that Filipinos are considered to be one of the most corrupt countries around the globe. But the thing is we are very afraid to fight this kind of attitude knowing that we are leading in the most corrupt country. Those people who are really involved in the corruption are avoiding the issues for them. The tendency is that many people will be involved in corruption and this will continue until they change the leader.
First, we must understand the difference between corruption and local practice. In explaining this in layman’s term, local practice is only for local, within the community and only limited, unlike corruption, it is national. People can obviously know that corruption issue as fast as they could because people are concern for that thing. Transaction governance capacity is about making the entire process as transparent as possible and consistently enforced. This only means that corruption is transparent to people. As stated before, because corruption is transparent, people will know that issue immediately. To fight against corruption and to avoid this act, it is stated here that we must reduce the frictional losses in doing business at the BOP. Doing business in BOP is considered to be an easy job, but when implementing BOP to product or services, it would be a different story.
What I’ve learned:
The primary statement of this particular chapter is to overt corruption in a business operation. I agree that corruption should be totally “killed” or avoid it as much as possible. Basing it to ethical values of the Filipinos, we have a power to avoid this particular act but the problem is we don’t have enough capabilities to overcome this challenge. I believe in the abilities of the Filipinos furthermore, we are world class people. The problem is that we don’t have an authentic solidarity. Just like Ben Quinones, the speaker from Corporate Social Responsibility for entrepreneurs, he is a very good example of an authentic entrepreneur because he combines the concept of corporate social responsibility, Bottom of the Pyramid Markets, authentic solidarity and other concepts or theory related to markets that will help people go further and surpass the state of poverty. I believe in him because he shows the characteristics of an authentic Christian. If Filipinos are like Mr. Ben Quinones, the future of the Philippines will have a good hope for the next generation of Filipinos.
Integrative Questions:
- Difference of corruption and local practice.
- What are the assumptions for poverty reduction, and developmental assistance?
- What is TGC?
- Is it difficult to implement TGC?
- The effect of corruption to BOP?
Citations: N/A
