Corruption and its Impact on Economic Growth and Development.

Essay by winlook007University, Master's January 2006

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The world view today is directed towards concepts of sustainable development and the acquisition of progressively higher standards of living .Growth without development is being criticised as being an ephemeral and increasingly deceptive indicator of the actual state of the economy .Concepts like population growth which erode economic growth and education and health which enhance human capital accumulation are gaining a lot of importance and are being touted as being as essential to the development of an economy as the growth rate of its GDP .Efficiency is being advocated at all levels of .the world outlook has now transitioned from the sustenance of regulated economies to a liberalization of the world economy. The precedence give to efficiency I is also bringing to focus factors which interfere with its implementation. It is in this regard that corruption, a relatively new phenomenon is gaining widespread importance in economic circles. What distinguishes corruption from other indictors is essentially the fact that it is non-quantifiable concept.

While measures of growth, education and access to health facilities are easily available, it is extremely difficult to actually assess the level of underhand dealings in an economy. The lack of concrete information makes any corruption measure largely susceptible to biases and subjectivity. To augment is, depending on the definition of corruption for any single economy. Our project is aimed at waiving the problems encountered in comprehending the exact nature of the relationship between corruption and economic development. To this effect .we have attempted to do the following:

- Formulate an acceptable definition of corruption and justify it; for the purposes of our study we have defined corruption as the abuse of public office for private gain.

- Present a theoretical framework in which to view the effect of corruption on growth; we have presented annotated summaries...