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How does corruption affect development and development management?

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How does corruption affect development and development management?

1. INTRODUCTION

Generally speaking, a transparent, fair and clean environment is one of the important guarantee of a rapid economic development. Corruption usually plays a negative role in social and economic development field (World Bank, 2000). Mauro (1996, 1998), Monte and Papagni (2007), Tanzi (1998) believe that corruption will hurt development. However, there are also some counter examples. After the second World War, for instance, some authoritarian countries began a quick development , but in this process, corruption could always be found, which even synchronously grew. This paper will focus on what is the relationship between corruption and development and how corruption could impact on development and development management. First, it will define what corruption means, as well as its categories. Second, the relationship between corruption and development will be discussed through a series different arguments. Third, it will focus on the case of China, where corruption and development currently coexist.

2. THE DEFINITION AND CATEGORIES OF CORRUPTION

Before discussing the above questions, it is necessary to clear the connotation and classification of corruption. Krueger (1974) studies in the field of corruption. She firstly puts forward the concept of economic rent-seeking, which theory is used to explain the widespread in various types of corruption in different countries. Thereafter, Ackerman (1978) tries to analyze the economics meaning of corruption through principal-agent theory. Ackerman thinks that if a third party tries to bribe, which means to pay a sum of money to the agent illegally in order to affect the decisions of the...

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