Monday, May 21, 2007

Measuring the Cost of Corruption

"Corruption - the theft of public resources for private gain – imposes large costs on businesses and society. The first type of costs is redistributive. Redistribution costs are incurred whenever business or individuals with more financial or political power abuse their privileged position to gain contracts or services (including regulatory services) at the expense of their competitors. The second type is a welfare cost to the overall economy as a result of corruption, making everyone worse off. Research has only recently started to quantify the various ways in which corruption retards private sector development." Source: World Bank

Link to database listing of various papers

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