How much does corruption cost the world?

By Notimex Wednesday, May 31, 2017 comments

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Torn pieces of paper with the word Corruption. Concept Image. Black and White. Closeup.

The Organization for Economic Co-operation and Development (OECD) report “Business and Financial Perspectives 2017” estimates corruption at nearly $ 2 trillion a year in a “conservative” amount.

 

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To size up this misallocation of resources, as identified by the OECD, the annual amounts of paid bribes account for more than half of the needs of the global economy to increase productivity by improving infrastructure investment by 2030, notes the document.

 

 

The report explains that the causes of corruption are complex, although they may be due to the wealth of a country, its culture, citizens have a voice in a democratic process, or there are good governance structures such as freedom of the press.

 

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One of the most recent cases of this type of practice was that of the Brazilian construction company Odebrecht in several Latin American countries. According to the OECD, the causes of this practice are complex but are related to the country’s wealth, in addition to being part of its culture.

 

 

The “Panama Papers” is one of the cases cited by the agency as a reference of the modus operandi of businessmen and also politicians.

 

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In this sense, evidence shows that corruption is involved in investments in countries where governance and property rights are weak. Large remote banking centers, are those that act as transfer centres for investment elsewhere.

 

 

According to the OECD, this practice reduces foreign direct investment to a country and slows its growth, The incoming capital flows are shared with private interests rather than with national interests, such as the allocation for social programs; While the money disappears into the accounts of politicians and officials in foreign banks.

 

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