How much does corruption cost the world?

By Elliot Bullman

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.

cost corruption world

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.

cost corruption world 4

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.

cost corruption world 2

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.

cost corruption world 3

RELATED NEWS

  • Spain and Mexico’s Trade Relations Curdle over Manchego DisputeSpain and Mexico’s Trade Relations Curdle over Manchego Dispute
  • Cape Town Water crisis: Cape Town Water crisis: 'Day Zero' Draws Near
  • MORGAN STANLEY: Here are the 6 internet stocks to bet on in 2018MORGAN STANLEY: Here are the 6 internet stocks to bet on in 2018
  • Ford announces $11B investment, 40 electrified vehicles by 2022 at Detroit Motor ShowFord announces $11B investment, 40 electrified vehicles by 2022 at Detroit Motor Show
  • Automobile Revenues will fall 40% due to Electric and Autonomous VehiclesAutomobile Revenues will fall 40% due to Electric and Autonomous Vehicles
  • Mexico debuts its best startups for 2018 at CESMexico debuts its best startups for 2018 at CES
  • Inside the Secret Society Running the World of CryptocurrencyInside the Secret Society Running the World of Cryptocurrency
  • Opinion: Who Will Profit Off the Next Crash?Opinion: Who Will Profit Off the Next Crash?
  • This is how Jeff Bezos will support the This is how Jeff Bezos will support the 'dreamers'
  • Oil Reaches $70 a Barrel for First Time in Three YearsOil Reaches $70 a Barrel for First Time in Three Years
  • Peso predicted to make comeback in 2018: BloombergPeso predicted to make comeback in 2018: Bloomberg
  • Chihuahua´s governor denounces Government reprisals for PRI corruption investigationChihuahua´s governor denounces Government reprisals for PRI corruption investigation
WATCH LIVE TV



Most Read Articles
Most Watched Videos
  • Generations Riviera Maya
  • Mayair

Language

Mexico News Network
All rights Reserved 2018