The solution, in this way of thinking, is for policy makers (the principals) to change the rules and the monitoring enforcement mechanisms to limit the room for deviation and assure that bureaucrat’s behavior will stay closer to the expected norms of clean management. In other words, not participating in corrupt actions is assumed to be the normal state of affairs as mandated by principals, and corruption is a deviation from this norm. The argument is that being co-located creates an environment where it is easier for people to work on ambiguous problems because they are all in the same room. This “information asymmetry” creates opportunities for corruption. Difficulty collaborating is a roadblock that I hear/observe when a team or company is considering remote work.

They can do this because principals in complex organisations don’t necessarily have access to all the information about what goes on, and agents can withhold key information, so principals are not fully able to monitor and control what agents do. Agents are delegated the responsibility to implement and enforce rules and regulations, but they can choose to pursue their private interests instead of the public interest represented by the principal. It assumes that the problem of corruption is one of bureaucrats and other public employees (“agents”) not following the rules and failing to fulfil the expectations of their leaders (“principals”). This theory is based on an economic concept called the principal-agent problem.

Risk roadblock synonym