John Kay writes (behind a paywall at the Financial Times, but also reprinted on his website):
… The real damage imposed by men such as Mr Mubarak is not the money they might have stolen. The tragedy is that the system that enables them to steal it destroys opportunities for others to generate wealth – not only for themselves but for the whole population.
The price of requiring a potential Mark Zuckerberg or Mr Gates to pay a $100 bribe to each of 10 officials before he can establish his new business is not the $1,000 creamed off by corrupt bureaucrats. It is the far greater one of lost businesses that never came into being because the licensing process that makes such corruption possible was not navigated. In the meantime, people who might be successful entrepreneurs choose instead to seek political power. If business is endlessly frustrating and politics endlessly rewarding, the career choice for able and enterprising people is obvious…
Clear, concise, critical, and original, Kay is one of my favourite commentators on finance and economics. When you’re done with the article I excerpted above, I highly recommend also checking out his archives.