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Economic effects of corruption in developing countries
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Effects of global corruption
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Corruption and Globalisation - Both of them have been so pervasive in
recent years. According to a BBC survey, corruption ranked as the
second biggest problem people concern in the world and globalisation
ranked first. Are there any links between the two? To what extend they
are related to each other? And what effect do they have?
1. Introduction
Both globalisation and corruption are the words that have been used
frequently in public debates all over the world in the last few years,
and they are both complex concept. Globalisation is relatively new
while corruption is an old one. Whether there may be any links between
the two phenomena? And to what extend they are related? This essay
will attempt to explore the relationship between the two from the
definitions, causes, consequences and the solutions.
Corruption can be defined as the abuse of public power for private
gain. (World Bank, 2004) Corruption is attracting a lot of attention
around the world, and is a growing international and regional concern.
According to Corruption Around the world (Tanzi, 1998), in its
end-of-year editorial on December 31, 1995, The Financial Times
characterized 1995 as the year of corruption. The following three
years could have earned the same title. The writing of books on
corruption has become a growth industry in various countries.
Corruption came second on a list of the biggest problems facing the
world, the survey of BBC viewers worldwide found. Conflicts - war and
terrorism - ranked third, with 50%, followed by hunger, 49%, and
climate change with 44%. BBC World asked 1,500 viewers of its news and
international channel for the biggest problems in the world with 52%
saying the US and globalisation. (BBC NEWS, 2004)
Why is there so much attention nowadays on corruption? Did people
ignore corruption in the past? Or is it because there is more
corruption than in the past? Some of the main reasons could be:
- As countries trade more with each other, fair trade is expected and
unfair business or political practices are being paid more attention.
- The media is reporting much more about corruption cases, especially
in emerging market countries, such as China, India.
- Globalisation has brought individuals and companies that from
countries with no or little corruption to those countries where
corruption is more frequent.
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Montesh, M. (n.d.). Conceptualizing Corruption: Forms, Causes, Types and Consequences. Retrieved May 4, 2014, from