The Phenomenon of Corruption
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This paper focuses on the phenomenon of corruption, and delves into its causes and possible correlations. However, the paper explains, the correlation among corruption, growth and economic development at a national level is not always so easy to discern. While it seems safe to say that poor countries generally tend to have high levels of corruption, the paper asserts, there are particularities in history, such as situations of countries that have had reasonably high levels of corruption, but have enjoyed important growth and investment rates during this time. The paper gives the example of South Korea as a country where the development of the market has simply taken over and corruption can no longer have the same role it used to have in the past. The paper concludes that although there is substantial evidence showing that corruption does not necessarily directly negatively impact development, there are so many costs associated with corruption that in the end the result is similar - growth is slowed, at the very least.
From the Paper:"The first impact on development that this type of bribery and corruption has, as pointed out by Krueger , is the fact that resources tend to be reallocated towards the corruption, necessary to obtain a competitive position on the market, rather than on the development of the organization itself or in other crucial areas such as the research and development sector. This could lead to the creation of a false development: these companies are investing on the market, but their budgets are affected by the money they have to put into the corruption funds, which means that there is less to go to the actual development of the company's market share. "
Sample of Sources Used:
- Shleifer, A. and Vishny R W. 1993, Corruption, Quarterly journal of Economics, 108, pp599-617
- Khan M H. 2002, Corruption and governance in Early Capitalism: World Bank Strategies and their Limitation, in J. Pincus and J. Winters (eds.), Reinventing the world bank, Ithaca, Cornell University Press, Pp. 164-184
- Meier, G. and Rauch, J. 2000 Chapter 9 Political Economy pp421-454, in Meier G and Rauch J Leading Issues in economic development, Oxford, Oxford University Press
- Krueger A 1974, The political economy of the rent-seeking society, American Economic Review
Cite this Analytical Essay:
The Phenomenon of Corruption (2010, November 14) Retrieved October 01, 2020, from https://www.academon.com/analytical-essay/the-phenomenon-of-corruption-145532/
"The Phenomenon of Corruption" 14 November 2010. Web. 01 October. 2020. <https://www.academon.com/analytical-essay/the-phenomenon-of-corruption-145532/>