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20
C
O
R
R
U
P
T
I
O
N
A
T
H
I
G
H
E
R
S
T
A
T
E
L
E
V
E
L
S
Y
S
T
E
M
F
A
I
L
U
R
E
C
O
R
R
U
P
T
I
O
N
A
T
L
O
W
E
R
S
T
A
T
E
L
E
V
E
L
Poverty
Taxation
regimes
Natural
scarcity
rents
Economic and
political instability
Lack of
democracy and
transparency
Corporation’s
in uence on
Government
Patronage
and
favouritism
Inadequate
penalty
system
Weak
Government
Monitoring and
enforcement
capacity
Monopolistic
concession
agreement
Poor
concessional
agreement
Ineciency
and waste
Provision of
resources at
low prices
ILLEGAL
LOGGING
Overcapacity
Low quality of
bureaucracy
Inadequate rules,
regulations and
permits
Causes of illegal logging
The Indonesian model
Sources: Palmer, C. E.,The Extent and Causes of Illegal
Logging: An Analysis of a Major Cause ofTropical
Deforestation In Indonesia, CSERGE Working Paper.