Description:
Countries with a low GDP per capita generally have a much lower fiscal quota than OECD countries, but many other factors push up the transaction costs in poor economies. High-tax societies provide more security, predictability and organizational discipline. The absence of such conditions is a powerful breeding-ground for corruption. If fiscal payments and bribes are added up to arrive at a composite measure of the ‘extraction burden’ in different countries, we might find that the costs of doing business do not diverge so much in various parts of the world.