Economic Development

Running head : Economic Development

Name

University

Course

Tutor

Date

Introduction

Corruption refers to the abuse or misuse of public power or office with an aim of meeting personal needs . Despite the fact that corruption has been in existence for a long time , it has increased recently in terms of intensity and geographical extent . It is a problem facing almost all countries around the world . The negative impact corruption has on economic and social development has raised major concerns in both the developing and developed countries . Different organizations

around the world have begun intensive research to establish the sources of corruption aimed at formulating effective means of cubing this vice According to the findings by the World Bank , corruption is the greatest obstacle to effective social and economic development (Akai , Horiuchi Sakata , 2005 . Corruption weakens development by interfering or distorting the law thus weakening or destabilizing the institutional foundation upon which economic development is rooted . Most of the major causes of corruption are economic based and thus has a direct impact on economic development in a country

Effects of Corruption on Economic Development

Different arguments have been put forward by different theorists and economists regarding the effects that corruption has on development Some theorists argue that corruption is beneficial and leads to economic development and growth . The government imposes strict and rigid regulations to entrepreneurs before commencing of a business adventure The processes of acquiring the necessary legal requirements to establish a business are governed by bureaucracies which scares away potential...