Introduction

As shown in previous chapters, the willingness to take bribes brings about disadvantages to the corrupt actors themselves. Public servants become useless to those who would like to entrust them with tasks that require integrity. They remain dubious to their corrupt counterparts who would steadily expect to be cheated. Neither task, legal or illegal, may be delegated to them. The willingness to take bribes backfires. I call this the principle of the invisible foot, helping good governance even in the absence of good intentions. But can the power of this principle survive? While the standard invisible hand of competition brings about good markets, does it destroy good governance? Would competition undermine the principle of the invisible foot? I argue that this is not the case. Ethical behavior survives market pressure for various reasons.

In November 1986, Masupha Ephraim Sole was appointed Chief Executive of the Lesotho Highlands Development Authority (LHDA), which was in charge of the Lesotho Water Highlands Project, a system of dams and tunnels that would provide water for South Africa and electricity for Lesotho. A large number of transnational corporations, among them the Canadian company Acres, which provided qualified professional staff to the LHDA, had engaged an intermediary, Mr. Bam.