Fighting Corruption in La Paz, Bolivia
A Case Study
La Paz, Bolivia: 1985
Crises in La Paz
› A huge construction unit (4,000 workers)
› Machinery, parts and gasoline stolen
› Poor quality and time delays
› Huge cost overruns
› Location of works affected by bribes (moonlighting)
› Complexity: 100 plus different taxes
› Property taxes meaningless
› Low values via hyperinflation
› Arrangements with assessors
› The proposed tax assessment survey
› Difficult to pay taxes = long cues
› Fraud on vehicle, and business taxes
› Over-regulation
› Many permits and licenses are required
› “Negotiations” in the corridors of City Hall
› Delays
› Corruption
› Collusion
› Kickbacks
› Complicated procedures in an effort to “control” corruption (26 steps for minor
purchases)
› Results: delays, poor quality, high costs, cynicism
› Inflation peddler & speculator
› The nicest cars in the parking lot
› Friend and “lender” to all (including the former Mayor)
› The symbol of mismanagement and corruption
› Financial collapse is imminent
› Deteriorated performance
› Unable to fulfill mission to the poor
› Political suicide?
› Diagnosis
› Strategy
› Implementation
› Addressing the payroll crisis with employees
› What kinds of corruption? Unpack
› Where, how much, who benefits, who is hurt?
› Participatory diagnosis
› Special studies
› The principle of frying a “big fish”
…otherwise, the culture of impunity persists
› The cashier bites the dust
› Others: tax evaders, procurement fixers hit
