Corruption and the global economy

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Elliott, Kimberly Ann - Personal Name

Corruption afflicts both developing and developed countries, as evidenced by recent scandals in Mexico, Ecuador, Korea, Japan, Italy, Russia, the United States, and elsewhere. Bribery often undermines political ligitimacy, squanders government revenues, and distorts international trade and invesment flows. Where it is pervasive. corruption can deter investment, thereby lowering growth. In a number of countries, pervasive corruption is a serious obstacle to ecenomic development. Yet, in spite of significant corruption, several East Asian countries have enjoyed rapid and sustained rates of economic growt, with benefits spread widely acroess the population. Why has corruption undermined gwoth in some situations while having little economic effect in others? Do certain government structures lead to more corruption or to more corrocive forms of corruption? Do certain economic policies-such as extensive government regulation and discretionary industrial policies or, on the other hand, open trade and investment regimes-tend to foster or inhibit corruption? This book examines the causes and cosequences of corruption, with particular attention to its impact on economic and political development. It also explores the steps that nongovernment organizations, developing-country governments, multilateral development banks, multinational firms, and the home countries of these firms can take to combat corruption. It recommends that the members of the OECD continue to push for the criminalization of transnational bribery; that the World Bank and other multilateral and bilateral development agencies vigilantly guard against malfeasance and devote more resources to improving governance and reducing corruption; and that the members of the World Trade Organization negotiate an agreement to enhance transparency and provide due process in government procurement.

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11020003

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