López Claros, Augusto2014-02-052014-02-052013-11https://hdl.handle.net/10986/16909This paper examines causes and consequences of corruption within the process of economic development. It starts by reviewing some of the factors that, over the past couple of decades, have transformed corruption from a subject on the sidelines of economic research to a central preoccupation of policy makers and donors in many countries. Drawing on a vast treasure trove of experiences and insights accumulated during the postwar period and reflected in a growing body of academic research, the paper analyzes many of the institutional mechanisms that sustain corruption and the impact of corruption on development. This paper argues that many forms of corruption stem from the distributional attributes of the state in its role as the economy's central agent of resource allocation. What is the impact of corruption on public finances and on the characteristics and performance of the private sector? What distortions does corruption introduce in the allocation of resources and in the relationships among economic agents in the marketplace? The paper also addresses the question of what can be done about corruption and discusses the role of economic policies in developing the right sorts of incentives and institutions to reduce the incidence of corruption. Particular attention is paid to business regulation, subsidies, the budget process, international conventions, and the role of new technologies. The paper concludes with some thoughts on the moral dimensions of corruption.en-USCC BY 3.0 IGOABUSEACCESS TO EDUCATIONACCOUNTABILITYACCOUNTINGADMINISTRATIVE CAPACITYADULT ILLITERACYANTI-BRIBERYANTI-CORRUPTIONANTICORRUPTIONANTICORRUPTION STRATEGIESARREARSASSET OWNERSHIPASSETSAUDITORSAWARENESS OF CORRUPTIONBAILBALANCE OF PAYMENTSBALANCE SHEETSBANK ACCOUNTSBANK LOANBANK LOAN OFFICERSBANKING SECTORBANKING SYSTEMBANKSBARRIER TO ENTRYBIDDINGBRIBEBRIBERYBRIBERY CONVENTIONBRIBERY LEGISLATIONBRIBERY SCANDALBRIBESBRIBINGBUDGET DEFICITBUREAUCRATIC OBSTACLESBUREAUCRATIC RED TAPEBUSINESS ACTIVITIESBUSINESS COMMUNITYBUSINESSMENCAMPAIGN CONTRIBUTIONSCIVIL SERVANTSCIVIL SOCIETYCOLLAPSECOLLECTION EFFORTSCOLLUSIONCONCESSIONCONCESSIONSCONFIDENCECONFLICT OF INTERESTCONSUMER PROTECTIONCORRUPTCORRUPT OFFICIALSCORRUPTIONCORRUPTION CHARGESCORRUPTION PERCEPTIONCORRUPTION PERCEPTION INDEXCORRUPTION PERCEPTIONSCORRUPTION PERCEPTIONS INDEXCOURT DECISIONSCPICREDIBILITYCREDIT GROWTHCREDITORSCRIMECRIMINALCRIMINAL LAWCRIMINALSCRONIESDEBTDEDUCTIBLEDEMOCRACYDEPOSITORSDEVELOPMENT OF ENTREPRENEURSHIPDIRECTED CREDITSDISBURSEMENTSDISCLOSURE REQUIREMENTSDISCRETIONDISCRIMINATIONDISINVESTMENTDISSOLUTIONECONOMIC ACTIVITYECONOMIC AGENTSECONOMIC DECISIONSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICIESECONOMIC PROBLEMECONOMIC REFORMSEMPLOYEEENFORCEABLE PROPERTY RIGHTSENFORCEMENT AGENCIESENTREPRENEURIAL CAPACITIESENTREPRENEURSEXCHANGE RATEEXCHANGE RATESEXCISE TAXESEXPENDITUREEXPENDITURESEXTERNAL CREDITSEXTORTIONEXTREME POVERTYFACILITATIONFARMERSFIGHT AGAINST CORRUPTIONFINANCIAL BURDENFINANCIAL COSTSFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL SECTOR REFORMFINANCIAL SITUATIONFOREIGN CORRUPT PRACTICESFOREIGN CORRUPT PRACTICES ACTFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN FIRMFOREIGN INVESTORSFREE MARKETFREEDOM OF INFORMATIONFREEDOM OF INFORMATION LAWSFREEDOM OF THE PRESSGLOBAL ECONOMYGLOBALIZATIONGOOD GOVERNANCEGOVERNMENT CORRUPTIONGOVERNMENT DEFICITGOVERNMENT INVOLVEMENTGOVERNMENT OFFICIALGOVERNMENT OFFICIALSGOVERNMENT POLICIESGOVERNMENT REGULATIONGOVERNMENT REVENUEHOMICIDEHONEST GOVERNMENTHOST COUNTRIESHOUSEHOLDSILL-GOTTEN WEALTHIMPLICIT CONTRACTIMPORT DUTIESINCOME GROUPSINEQUALITYINFLATIONINFORMATION DISCLOSUREINITIATIVEINSECURE PROPERTYINTEGRITYINTERESTED PARTIESINTERNATIONAL BANKINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL TRADEINVESTINGINVESTMENT CLIMATEJAILJOB CREATIONJUDGESJUSTICEKLEPTOCRACYLAW ENFORCEMENTLEGAL FRAMEWORKLEGAL SYSTEMLOANLOAN DOCUMENTATIONLOBBYINGMACROECONOMIC MANAGEMENTMACROECONOMIC POLICYMACROECONOMIC STABILIZATIONMALFEASANCEMANDATEMARKET ECONOMYMEMBERS OF THE MILITARYMINISTERMINISTERSMISAPPROPRIATIONMONETARY FUNDMONETARY POLICIESMONEY LAUNDERINGMONOPOLIESMONOPOLYMULTINATIONALSNEPOTISMNEW BUSINESSNEW BUSINESSESOFFENSEOFFICIAL CORRUPTIONOIL PRICESPAYOFFPAYOFFSPENALTIESPENSION FUNDSPERSONAL GAINPOLICEPOLICE OFFICERSPOLITICAL STABILITYPOLITICIANSPREFERENTIALPRIVATE GAINPRIVATE GAINSPRIVATE PARTIESPRIVATIZATIONPROCUREMENTPROPERTY MARKETPROPERTY RIGHTSPROVISION OF LOANSPUBLIC DEBTPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC OFFICIALPUBLIC OFFICIALSPUBLIC POLICYPUNISHMENTRATES OF INTERESTRED TAPEREPRESSIONRULE OF LAWSALE PROCEEDSSCANDALSCANDALSSETTLEMENTSOCIAL SECURITYTAXTAX BURDENTAX EXEMPTIONTAX EXEMPTIONSTAX LIABILITIESTAX REVENUETAX-EXEMPTTERRORISMTHEFTTHIEVERYTRANSITION ECONOMIESTRANSPARENCYUNEMPLOYMENTUNEQUAL ACCESSUNIONVALUE OF ASSETSVIOLENCEWAGESWHITE ELEPHANTSWorld Bank10.1596/1813-9450-6704