Topic 5: Corruption and Economic Development

The World Bank has identified corruption as “the single greatest obstacle to economic and social development” because it weakens the institutional foundation on which economic growth depends and because it undermines equality. The relationship between corruption and growth, however, is not a simple one.

  1. How many kinds of corruption are there? How or why are they different? Is one kind “better” for growth than the other? Explain briefly. Hint: reading chapter 12 in Easterly (2002) will help.
  2. In your opinion, what is/are the major causes of corruption? Consequently, what policies do you think would be effective in curbing corruption? Why or how?