Some years ago, there was a tsunami in the economics literature on the relationship between economic growth and corruption. When it became clear that correlation is not causation, and that perception is not necessarily reality, the wave dwindled, although a corruption-index industry did thrive, (for a while). A recent paper retakes this issue from a more rigorous … [Read more...] about Corruption and growth, revisited
By: Isabel Contreras and Juanita Riaño (IADB´s Office of Institutional Integrity) Every year on December 9 the International Anti-Corruption Day is celebrated. This year’s message reminds us that we all have a responsibility in the fight against corruption, as it hinders achieving our goals of sustainable development, and reducing poverty and inequality in Latin-America … [Read more...] about Corruption: peeking below the tip of the iceberg
By Leopoldo Fergusson* and Juan Fernando Vargas** Having a free and active media is recognized as essential for political accountability. By providing information, mass media can help voters make better decisions and hold politicians accountable. Often, journalists also help uncover corruption scandals and undue influence of special interests groups. A famous example … [Read more...] about Sunlight disinfects, but beware of the shade!
For a while I have been meaning to write a post on the impact of political institutions on corruption based on an interesting paper on municipal elections in Brazil. The paper shows that the reelection specter helps in disciplining corrupt politicians Mayors with reelection incentives misappropriate 27 percent fewer resources than mayors without reelection incentives. These … [Read more...] about Accountability and corruption
One of the first things I do most mornings is check-out Chris Blattman’s blog. He recently posted a very provocative entry on corruption, criticizing the emphasis that many international agencies place on it, calling it an “Anglo-American fetish.” Westerners care about corruption far out of proportion to its impact on poverty alleviation and economic growth. […] To be … [Read more...] about The tip of the Iceberg