Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Economic Development and Corruption - Essay Example

Comments (0) Cite this document
Running Header: Economic Development and Corruption: Name: Economic Development and Corruption Semester Module Economic development is a broad concept. It includes the concerted actions of policy makers to improve the overall standards of a society in important fields such as standard of living, education, health, infrastructure and meeting the important economic aims and targets…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.2% of users find it useful
Economic Development and Corruption
Read Text Preview

Extract of sample "Economic Development and Corruption"

Download file to see previous pages In a developing economy there is improvement in the standard of living of people and focus on environmental stability also increases. Economic stability can sometime also give rise to materialism. People strive hard to make more money and they often use unethical means to achieve their materialistic targets. One such unethical method is corruption. Different people hold different views about the impact of corruption on the economic development. Many people view it as a barrier to economic development while others believe that it does not impact the society and economic development much (Easterly 2006). This paper is going to discuss various anecdotal evidence and view that people have about corruption in relation to economic development. Economies in the transition face often have large number of lobbying efforts going on. These economies are aiming for economic development and hence they do not care much about lobbying efforts and governments of these economies are more susceptible to lobbying pressures than a government of a more developed nation. The evidence and research shows that these lobbies often pay huge sum of money to the government pressures to accept their demand. The corrupt political system in these countries makes it possible for people to form lobbies and put pressure on political leaders. These leaders often get directions from these lobbies if they pay them well. Since many lobbying groups are fighting for what is good for their own business, they end up doing well for the society also. The theory of invisible hand comes into play here. The theory states that any action done for one’s own self motive or profit will eventually translate into good for the society. Hence, corruption in all cases is not bad and research on 4000 firms in developing countries shows that corruption has played a role in the economic development of a nation. (Campos & Giovannoni 2007) In another paper, it was argued that corruption is essentially bad for a growing economy. First of all, corruption reduces the value of shareholders. In growing economies where corruption is extremely high, the expected profit that the shareholders expect to make does not materialize. Much of the profit is lost in the corrupt red-lines of bureaucracy and hence shareholder value goes down in the corrupt economies. Many foreign companies therefore try not to invest in corrupt nations fearing that returns on investment in these economies would be far less than if the investment is made in the local setting. This reduces foreign direct investment flows into the corrupt economies and poses a big problem for the economic development. This argument shows us that corruption can be a big barrier in the economic development of a nation. (Weitzel & Berns 2006) In a recent paper written by a well known economist, it was argued that corruption is actually good for the economies. It increases the flow of wealth in the economy from one hand to another and promotes economic activity which leads to economic development. It was argued that corruption becomes bad when the corruption money goes out from the system. Evidence shows that many political and rich figures in the developing economies put their money in bank accounts in the foreign countries. This is an example of money flowing out of the system and this money does not promote any ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“Economic Development and Corruption Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Economic Development and Corruption Essay Example | Topics and Well Written Essays - 1500 words. Retrieved from
(Economic Development and Corruption Essay Example | Topics and Well Written Essays - 1500 Words)
Economic Development and Corruption Essay Example | Topics and Well Written Essays - 1500 Words.
“Economic Development and Corruption Essay Example | Topics and Well Written Essays - 1500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic Development and Corruption

Leadership Development Experience

The nine-month certificate program which I completed at Leadership Institute of South Puget Sound combined academic study on leadership with practical development of leadership skills. Numerous community service activities such as involvement in Employee Community Fund (ECF), being a Child haven volunteer, Christian Center volunteer and a Junior Achievement Consultant have exposed me to situations which made me apply many skills such counseling young people, and motivating them to achieve their full potential, seeking solutions with expansive thinking and application of flexibility and quick responsiveness. My involvement in Christian Center had specially sharpened my crisis management skills by participating in natural disaster m...
13 Pages (3250 words) Assignment

The Economic Impact of the Emergence of China and India

The main macroeconomic variable that toys in the global economy’s shift are the emergence of India and China as new superpowers. This emergence certainly has a number of implications, but among the most relevant are: disruption of the equilibrium of the global economy which results in rising demand of goods, giving way to worldwide inflation; the attractiveness of outsourcing to these countries due to low cost but high talent workforce of these countries for cheaper operations.
The growing middle class of China and India results in booming demand for the automobile industry. This increase in demand, with the increasing purchasing power of these countries’ people, is not limited to automobiles but more apparent in...
10 Pages (2500 words) Assignment

Economic Value Added as Tool for Improving Performances

To discover whether pure profits exist, take the revenue of the firm and deduct the costs of all factors of production other than capital. Then deduct the pure return on capital and any risk premium necessary to compensate the owners of capital for risks associated with its use. Anything that remains is pure profits.” Simply in economic terminology economic value added (EVA) is commercial profits reduced by opportunity costs (that is the pure return on riskless investment and the risk premium). Lipsey calls the EVA defined in this fashion as “pure profits, economic profits or, where there is no room for ambiguity, just profits”.

Investors in any company are interested in real profits that are profits r...
7 Pages (1750 words) Report

Gross Domestic Product and the Nations Competency in Terms of Economic Welfare

It is often used to compare the economic performance to aid as a prediction tool and to analyze the business cycles and the recessive and expansive economic performances within them. This further aid economic and fiscal policy formulation of the government and is also used to analyze the consumer behavior and the economic phenomena involved. (Heakal, R. 2008).These figures can be a benchmark to compare economies of different nations and the economic prediction process is also made possible.

A usual pattern of assessing the Gross Domestic Product is to have an initial GDP report on every quarter which is an advance report. Two corrective reports follow this before the final figures on GDP are arrived at. It usually takes...
7 Pages (1750 words) Report

The Role of Mass Media in the Development of Aggression

Despite the fact that longitudinal studies have proven that human aggression is to some extent an unwavering trait, it is undeniable that the environment plays a big role in influence the aforementioned behavior (Slaby & Roedell, 1982). Our daily encounter with the environment is a form of socialization that is defined as the process of integrating within oneself a sense of connection to a larger social world by means of discovering, understanding and adopting the beliefs, values, and norms of culture of other people. To a certain extent, sociologists consider the mass media as a powerful socializing agent as its significance is not constrained to the content alone of the media messages. Instead, it affects how we learn a...
10 Pages (2500 words) Report

The Effect of Democracy on Chinese Development

Any country first needs to go through economic liberalization and political liberalization before finally settling into a stable democratic situation. Democracy should not at any one point be viewed as if it were socialism, but should be seen as a means of promoting economic development through accountability and protection of individual lawful rights and interests...accountability in the sense that the respective leaders are able to fight corruption, enhance social harmony, strengthen public trust and more importantly empower government institutions that are directly in touch with the people (Liu, 2008, p.1-2). Owing to the Chinese well informed and affluent society on top of having a very dynamic economy, the political change wh...
7 Pages (1750 words) Coursework

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages (2500 words) Research Paper

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages (2000 words) Case Study

International Business: World Economic Forum and Davos 2010

While each force of globalization is important, the technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking applications possible are now being applied to development, healthcare, and society. Today mobile telephones are more like powerful computers that take care of many of the societal challenges facing both developed and developing countries (Evans, 2010). In Chile, new software enables weather information to farmers who can now make informed decisions on when and how to sow or harvest the crops. However, the fear or ignorance of cloud computing technology could harm the chances of the SMEs becomi...
7 Pages (1750 words) Coursework

Globalization and World Economic Forum at Davos 2010

...Globalization and World Economic Forum at Davos Forces Driving Globalization Globalization has resulted in enhanced interdependencies among thenations of unprecedented scale. This augmented interdependence has caused the dismantling of trade barriers and liberalization of markets. The forces of globalization have impacted the nations, the firms and the individuals alike with the prerequisite of liberalization of trade (Awuah, 2009). The seven forces of globalization are; Markets, Production, Culture, Labor, Technology, Environment and Liberalization. Of these factors, the globalization of markets has engaged substantial attention of the firms and the academia. Some markets are highly globalized, while some are not. The scale of market...
7 Pages (1750 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economic Development and Corruption for FREE!

Contact Us