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I'd love for that to be true; try handling a parking/driving violation in a place where the police make $275/month--if you have an American (any 1st world one will do) passport, you're guilty until you cough up $20. Attempt to freak out and the penalties may suddenly increase...and then you may be sorry that you didn't memorize the address and telephone number of your embassy or consulate.
Luckily, for every horror story, there are at least 10 good ones, and tourism bureaus are always trying to even out heavy-handed police tactics. Basically just watch yourself, and be ridiculously polite--that bill folded into your passport that barely pays for a movie ticket in your home country feeds that cops family for a week...
Cheers.
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