How IMF programmes can increase corruption
Bernhard Reinsberg, University of Glasgow and Thomas Stubbs, Royal Holloway Corruption is one of the greatest obstacles to economic development. It deprives nations of income to invest into public services, with adverse implications for education, health, well-being, and prosperity. The Global Economic Forum estimates that corruption costs the public coffers US$2.6 trillion a year. Why is corruption so difficult to control? Scholars have long blamed factors intrinsic to corrupt countries. For example, countries with a wealth of natural resources – like diamonds and oil – are corrupt because political leaders are unaccountable to their citizens. They can rely on natural resource income, rather than taxation, to finance their expenses. Undemocratic governance is also seen as a cause. A lack of checks and balances on leaders fosters corruption, as does the suppression of political rights, civil liberties, and free media. But researchers have paid less attention...