The Growth and Corruption Correlation: Its impact on the achievement of middle income status

Essay by MbonuUniversity, Bachelor's March 2006

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That corruption adversely affects economic development has become commonplace knowledge. Corruption damages economic development and keeps people poor. As Vaclav Havel, former Czech President (October 2001) observed: Corruption may either deter investment or render it less productive through its adverse impact on the risk and cost of doing business.

There appears to be worrisome evidence of a perception of high levels of corruption as well as tolerance for corruption in Ghana. The recent four-urban cities in Southern Ghana survey of the Ghana Integrity Initiative (GII) reported as follows:

* A high - 70 per cent of respondents - said they had been involved in bribery and corruption either as victims or perpetrators.

* Almost 90 per cent of respondents who had witnessed incidents of bribery and corruption usually looked on unconcerned.

Clearly, this is an indication of an "unacceptably high level of tolerance for corruption among Ghanaians" [GII Alert of September 2005].

According to the Release of Findings, the survey captured the perceptions of respondents on institutions or organizations highly affected by corruption in the country today. The top ten institutions are shown in the Table below. They can be grouped into four categories with the Police Service alone in the top category. Perhaps a saving grace in the otherwise dismal picture is the Politician being in the fourth group together with the Internal Revenue Service.

i. The Police Service - 76.8%

ii. Ministry of Education - 31.5%

iii. Customs - CEPS - 31.1%

iv. The Judicial Service - 16.4%

v. Civil/Public Service - 16.4%

vi. Ministry of Health - 15.6%

vii. Politicians (Ministers, MPs, etc) - 8.7%

viii. Electricity Company - 5.5%

ix. Internal Revenue - 5.2%

x. Ghana Immigration Service - 4.3%

Political Corruption is defined by Transparency International (TI) - the world-wide anti-corruption advocacy...