Removing Impediments to Sustainable Economic Development : The Case of Corruption
This paper examines causes and consequences of corruption within the process of economic development. It starts by reviewing some of the factors that, over the past couple of decades, have transformed corruption from a subject on the sidelines of e...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/11/18517448/removing-impediments-sustainable-economic-development-case-corruption http://hdl.handle.net/10986/16909 |
| Summary: | This paper examines causes and
consequences of corruption within the process of economic
development. It starts by reviewing some of the factors
that, over the past couple of decades, have transformed
corruption from a subject on the sidelines of economic
research to a central preoccupation of policy makers and
donors in many countries. Drawing on a vast treasure trove
of experiences and insights accumulated during the postwar
period and reflected in a growing body of academic research,
the paper analyzes many of the institutional mechanisms that
sustain corruption and the impact of corruption on
development. This paper argues that many forms of corruption
stem from the distributional attributes of the state in its
role as the economy's central agent of resource
allocation. What is the impact of corruption on public
finances and on the characteristics and performance of the
private sector? What distortions does corruption introduce
in the allocation of resources and in the relationships
among economic agents in the marketplace? The paper also
addresses the question of what can be done about corruption
and discusses the role of economic policies in developing
the right sorts of incentives and institutions to reduce the
incidence of corruption. Particular attention is paid to
business regulation, subsidies, the budget process,
international conventions, and the role of new technologies.
The paper concludes with some thoughts on the moral
dimensions of corruption. |
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