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Success can be long in coming. The present study examines the efforts of some governments to deal with certain problems of policy implementation, using the services of preshipment inspection (PSI) companies. To a degree, PSI addresses the symptoms and not the causes of policy failure. In that role, PSI can serve a useful purpose, pending the introduction of more fundamental remedies. But many of the benefits of PSI, such as enhanced revenue collection and trade facilitation, will only be realized if governments show the requisite level of commitment.
Chapter IV focuses on how the attitudes and behavior of governments affect the value of PSI services. The emphasis of the chapter is on customs-related activities and revenue collection, and seeks to specify what is required of governments if they are to make the most of PSI services. The first section involves a somewhat abstract analysis of problems of corruption and tax evasion. This discussion serves as a backdrop to an examination in section 2 of how PSI services can be designed so as to ensure that the information generated by PSI Page 4 companies is used effectively in stemming revenue fraud, which may involve importers and/or government officials.
C. A. All rights reserved anufactured in the United States of America First printing February 1995 Discussion Papers present results of country analysis or research that are circulated to encourage discussion and comment within the development community. To present these results with the least possible delay, the typescript of this paper has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available.