Bribery sucks up between USD 1.5 and USD 2.0 trillion dollars annually around the world, dragging down economies and worsening social services for the poor. It has been revealed by The International Monetary Fund (IMF).
In a new report on the economic impact of corruption, the IMF said that bribery, graft and other cheating common in both rich and poor countries limits economic growth and undermines sound government policies.
The cost of bribery alone tops more than two percent of global gross domestic product (GDP) — a broad measure of economic output — and because it is tainted, that money is often sucked out of economies to offshore havens, meaning it does not contribute to growth.
Corruption is a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. Corruption may include many activities including bribery and embezzlement. – Wikipedia
The economic impact of corruption is hard to quantify, according to the IMF report. But despite claims that it helps “grease the wheels” to make economies work, the overall impact is very negative.
Corruption perpetuates economic inefficiency, undermines public policy, and exacerbates inequality, the report says. It also scares off both domestic and foreign investors.
“Investors actually seek out countries that can give them the assurance that, once an investment is made, they will not be blackmailed into providing bribes,” IMF Managing Director Christine Lagarde said.
Even the recent AgustaWestland case have roots of bribery. The defence ministry stated, “Publicly available information on the procurement of AgustaWestland helicopters clearly shows that the core issue in the matter is corruption.”
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