. What do you think that liberalization hasled the mega corruption issues or not?

Financial liberalization in small countries may lead to opportunities to embezzle more public funds and at the same time raise efficiency in capital production.

Associated with such instances of the possible misuse of powers held by state functionaries for substantial private gain is huge profit for some of the richest individuals and for leading domestic and foreign business groups. This leads to surplus accumulation among two groups. The first is among those serving the state apparatus in high positions. The suspicion that this could be occurring is strengthened by the growing nexus between politics and business and the huge increases over time in the assets reported by individuals contesting elections to parliament and the legislatures. The second set of potential beneficiaries consists of the business groups which derive gains from the purchase of pecuniary benefits for a small price.It is to be expected that such instances would increase under liberalization since the state increasingly dilutes or gives up its role as an agent influencing and regulating the nature and scale of private activity to take on that of being a facilitator of private investment. In fact, the very process of transition to a more “liberal” regime is fraught with potential instances of corruption, as the allegations of under-pricing of public assets in the process of disinvestment of public enterprises illustrates. The process of decontrol and deregulation is also accompanied by efforts at promotion of private investment, involving public-private partnerships and help to the private sector to acquire land and material and financial resources. As a result, besides the old type of corruption where state functionaries demand a price for favoring individual firms with purchase orders or permissions and exemptions, there is a new form in which those benefiting from state support could be called upon to share the transfers they receive with the decision makers involved.

Advocates of liberalization have argued that by reducing state intervention and increasing transparency economic reform would reduce corruption. The allegations of large scale corruption suggest that this is not true. Liberalization does not mean that the state withdraws from intervention but merely that there is a change in the form of state intervention, which also enables the state to deliver illegitimate gains to individuals and private players.