corruption is a global problem essay

Corruption is a Global Problem for Development. To Fight It, We All Have a Role to Play

Oped published in French in La Tribune Afrique, June 13, 2023.

Oped by Ousmane Diagana, World Bank Vice President for Western and Central Africa and Mouhamadou Diagne, World Bank Vice President for Integrity.

Every day, we hear about the onslaught of crises facing the world—from climate change to conflict, inflation and debt, and the ongoing recovery from a years-long pandemic. Add to them the prospect of slow economic growth , and our efforts to overcome these challenges seem rife with obstacles. For developing countries, many with limited and already stretched resources, the confluence of crises will be especially difficult to navigate.

But if we are to achieve success over the challenges of our time, there is one scourge we cannot fail to confront: corruption.

The unfortunate truth is that corruption persists in all countries. It manifests in many ways—from petty bribes and kickbacks to grand theft of public resources. With advances in technology, corruption has increasingly become a transnational challenge without respect for borders, as money can now move more easily in and out of countries to hide illicit gains.

Corruption is also a fundamental problem for development.

Corruption harms the poor and vulnerable the most, increasing costs and reducing access to basic services, such as health, education, social programs, and even justice. It exacerbates inequality and reduces private sector investment to the detriment of markets, job opportunities, and economies. Corruption can also undermine a country’s response to emergencies, leading to unnecessary suffering and, at worst, death. Over time, corruption can undermine the trust and confidence that citizens have for their leaders and institutions, creating social friction and in some contexts increasing the risk of fragility, conflict, and violence.

To prevent these negative impacts, we must confront corruption with determined and deliberate action. For the World Bank Group, fighting corruption in development has been a long-standing commitment in our operational work. This commitment is reflected in our support for countries in building transparent, inclusive, and accountable institutions , but also through initiatives that go beyond developing countries to also include financial centers, take on the politics of corruption more openly than before, and harness new technologies to understand, address, and prevent corruption.  

Indeed, across western and central Africa in particular, it is one of the World Bank Group’s strategic priorities to emphasize issues of good governance, accountability, and transparency among our partner countries, with the aim of reducing corruption. We recognize that transparency in public affairs and the accountability of high-level officials are fundamental to the trust of citizens in their government and the effective delivery of public services. Working to rebuild and bolster trust between citizens and the state is critical today, especially in countries affected by fragility, conflict and violence that make up half of the countries in this region alone.

Across Africa, World Bank Group support is helping countries face these challenges. Recent investments in the Republic of Congo , Ghana , and Morocco , for example, will support institutional governance reforms to improve the performance and transparency of service delivery. In Kenya, our support will further fiscal management reforms for greater transparency in public procurement , thereby reducing opportunities for corruption. Strengthening citizen-state engagement is key: In Burkina Faso, for example, a World Bank-funded project helped the national government improve citizen engagement and public sector accountability through the development of a digital tool to monitor the performance of municipal service delivery. 

The World Bank Group’s commitment to fighting corruption is also reflected in robust mechanisms across the institution that enhance the integrity of our operations. Our independent Integrity Vice Presidency (INT) works to detect, deter, and prevent fraud and corruption involving World Bank Group funds. Over two decades of INT’s work, the World Bank has sanctioned more than 1,100 firms and individuals, often imposing debarments that make them ineligible to participate in the projects and operations we finance. In addition, we have enforced more than 640 cross-debarments from other multilateral development banks, standing with our MDB partners to help keep corruption out of development projects everywhere. Nevertheless, we must remain vigilant to the risks of fraud and corruption that remain.

The World Bank Group also leverages its position as global convener to support anticorruption actors at all levels and from around the world. That is why we are pleased to have organized the next edition of the World Bank Group’s International Corruption Hunters Alliance (ICHA) to take place in Abidjan, Côte d’Ivoire, on June 14-16, 2023.

The ICHA forum is an opportunity for front-line practitioners committed to fighting corruption as well as policy makers and representatives from the private sector and civil society, to come together to share knowledge, experience, and insights for confronting corruption. For the first time since its inception in 2010, we are hosting the ICHA forum in an African country. This reflects the reality that the negative impacts of corruption can be more devastating for developing countries, who face unique challenges and have fewer resources to overcome them. Yet, it also acknowledges that there is a wealth of anticorruption strengths, skills, and expertise from these countries that we must draw upon.

Together, we can affirm that through our collective action, we can advance the fight against corruption even in an era of crises.  

This site uses cookies to optimize functionality and give you the best possible experience. If you continue to navigate this website beyond this page, cookies will be placed on your browser. To learn more about cookies, click here .

Corruption costs developing countries $1.26 trillion every year - yet half of EMEA think it's acceptable

Corruption leaves many people far worse off and feeling marginalized. Image:  Unsplash/Vitaly Taranov

.chakra .wef-spn4bz{transition-property:var(--chakra-transition-property-common);transition-duration:var(--chakra-transition-duration-fast);transition-timing-function:var(--chakra-transition-easing-ease-out);cursor:pointer;text-decoration:none;outline:2px solid transparent;outline-offset:2px;color:inherit;}.chakra .wef-spn4bz:hover,.chakra .wef-spn4bz[data-hover]{text-decoration:underline;}.chakra .wef-spn4bz:focus-visible,.chakra .wef-spn4bz[data-focus-visible]{box-shadow:var(--chakra-shadows-outline);} Sean Fleming

• Corruption is a global problem.
• It costs both money and lives.
• International collaboration is the only way to defeat it.

Corruption takes many forms. It is often thought of as a problem that mostly affects developing countries. But while the harm it does is magnified in poorer nations, corruption does not concern itself with national boundaries – it can be unearthed anywhere.

Have you read?

Here's how tech can help governments fight corruption, how corruption hurts innovation.

At the 50th World Economic Forum Annual Meeting in Davos next month, Founder and Executive Chairman Klaus Schwab will launch the Forum's Davos Manifesto . It will state the need to adopt a new economic model, "stakeholder capitalism". And at its heart is a call to fight corruption. That fight has been central to the World Economic Forum's work for many years, and in 2004 it established the Partnering Against Corruption Initiative (PACI) .

To mark International Anti-Corruption Day 2019, here are seven shocking and damaging recent examples of corruption around the world, as identified by Transparency International .

1. Across the EMEA region (that’s Europe, the Middle East, and Africa) and India almost half of all workers think bribery and corruption are acceptable if there is an economic downturn.

2. Corruption, bribery, theft and tax evasion, and other illicit financial flows cost developing countries $1.26 trillion per year. That’s roughly the combined size of the economies of Switzerland, South Africa and Belgium, and enough money to lift the 1.4 billion people who get by on less than $1.25 a day above the poverty threshold and keep them there for at least six years.

3. The Transparency International Corruption Perceptions Index scores 178 countries on their degree of corruption – 10 is the cleanest possible, and 0 indicates endemic corruption. In 2010, around three-quarters of all 178 scored lower than five.

4. As much as $132 billion is lost to corruption every year throughout the European Union’s member states, according to the EU Commissioner for Home Affairs.

It hosts the Partnering Against Corruption Initiative (PACI) , the largest global CEO-led anti-corruption initiative.

Realizing that corruption hampers growth and innovation, and increases social inequality, PACI aims to shape the global anti-corruption agenda.

Founded in 2004, it brings together top CEOs, governments and international organizations who develop collective action on corruption, transparency and emerging-marking risks.

PACI uses technology to boost transparency and accountability through its platform, Tech for Integrity .

5. Bangladesh is one of the world’s poorer countries. Around one-third of the population say they have been the victims of corruption, and an astonishing 84% of those households who had interacted with different public and private service institutions have been victims of corruption.

6. In war-torn Afghanistan, of the $8 billion donated in recent years, as much as $1 billion has been lost to corruption. Integrity Watch Afghanistan estimates bribe payments — for everything from enrolling in elementary school to getting a permit — exceed $1 billion a year.

7. In one Russian province, if you want to become a police officer you will probably have to pay around $3,000. To get a place in medical school, you will need to part with around $10,000. One consequence of this, according to the International Crisis Group, has been that some people have grown so disaffected that they have become drawn to Islamic extremism.

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Stay up to date:

.chakra .wef-1v7zi92{margin-top:var(--chakra-space-base);margin-bottom:var(--chakra-space-base);line-height:var(--chakra-lineHeights-base);font-size:var(--chakra-fontSizes-larger);}@media screen and (min-width: 56.5rem){.chakra .wef-1v7zi92{font-size:var(--chakra-fontSizes-large);}} Explore and monitor how .chakra .wef-ugz4zj{margin-top:var(--chakra-space-base);margin-bottom:var(--chakra-space-base);line-height:var(--chakra-lineHeights-base);font-size:var(--chakra-fontSizes-larger);color:var(--chakra-colors-yellow);}@media screen and (min-width: 56.5rem){.chakra .wef-ugz4zj{font-size:var(--chakra-fontSizes-large);}} Corruption is affecting economies, industries and global issues

.chakra .wef-19044xk{margin-top:var(--chakra-space-base);margin-bottom:var(--chakra-space-base);line-height:var(--chakra-lineHeights-base);color:var(--chakra-colors-uplinkBlue);font-size:var(--chakra-fontSizes-larger);}@media screen and (min-width: 56.5rem){.chakra .wef-19044xk{font-size:var(--chakra-fontSizes-large);}} Get involved with our crowdsourced digital platform to deliver impact at scale

The agenda .chakra .wef-dog8kz{margin-top:var(--chakra-space-base);margin-bottom:var(--chakra-space-base);line-height:var(--chakra-lineheights-base);font-weight:var(--chakra-fontweights-normal);} weekly.

A weekly update of the most important issues driving the global agenda

.chakra .wef-1dtnjt5{display:flex;align-items:center;flex-wrap:wrap;} More on Geo-Economics and Politics .chakra .wef-17xejub{flex:1;justify-self:stretch;align-self:stretch;} .chakra .wef-2sx2oi{display:inline-flex;vertical-align:middle;padding-inline-start:var(--chakra-space-1);padding-inline-end:var(--chakra-space-1);text-transform:uppercase;font-size:var(--chakra-fontSizes-smallest);border-radius:var(--chakra-radii-base);font-weight:var(--chakra-fontWeights-bold);background:none;box-shadow:var(--badge-shadow);align-items:center;line-height:var(--chakra-lineHeights-short);letter-spacing:1.25px;padding:var(--chakra-space-0);white-space:normal;color:var(--chakra-colors-greyLight);box-decoration-break:clone;-webkit-box-decoration-break:clone;}@media screen and (min-width: 37.5rem){.chakra .wef-2sx2oi{font-size:var(--chakra-fontSizes-smaller);}}@media screen and (min-width: 56.5rem){.chakra .wef-2sx2oi{font-size:var(--chakra-fontSizes-base);}} See all

Is the Rise of China Reshaping Global Dynamics? | Dr Qian Lu

What Global Dynamics are Shaping Leaders’ Actions? | Dr Samir Saran

How the Global Future Councils use 'knowledge collisions' to address today’s challenges

Globalization isn't finished – it can unlock new growth and beat the climate crisis

Chief Risk Officers Outlook: October 2024

How political leadership transitions could shape Southeast Asia's future

• The Global Impacts of Corruption Words: 553
• The Problem of Corruption for the Economic Development of Countries Words: 1717
• Corruption in Public Administration Words: 2244
• The Impact of Corruption on International Trade Words: 14040
• Cause of Corruption in Nigeria and Solution of the Problem Words: 1434
• Corruption in Africa’s Developing States Words: 3395
• Corruption as a Problem in Public Administration Words: 2354
• Corruption in Developing Countries – a Cultural Phenomenon Words: 2224
• Accountability and Corruption in the Public Sector Words: 2022
• Corruption in the African Countries Words: 553

Corruption: The Global Problem

Regarding human rights abuses, Morocco, which is ranked 39 on the index, proposed an emergency law that denied citizens their right to movement, as well as assembly and free speech. Furthermore, the act was applied as legal protection targeting government critics and advocates of human rights. Thus, companies that would have complained against the inhuman treatment of the citizens would face severe judgments. Blasts that occur as a result of corruption lead to economic collapse, which affects company operations and profitability. For example, the Beirut blast in Lebanon resulted in widespread protests that caused an economic standstill.

Most companies suffer inequality and discrimination across corrupt regions. Corrupt use of personal connections allows known persons to refer friends to companies only linked to them. In Arab states, waste has been applied, consequently leading to slow business and sometimes the collapse of companies that are not favored. There are numerous ways that savvy marketers can apply to safeguard their global community. They should ensure citizens are enlightened on graft matters at regional, governmental, and intercontinental levels. Furthermore, keep them updated with the scale and scope of corruption. Marketers can use the emergence of technology to strengthen a continuous exchange between key stakeholders like governments, the public, civil society formations, academicians, and the media. Additionally, they should work with both governmental and non-governmental groups to alter conduct and observe progression.

Safeguarding organizational reputation requires transparency, which involves open procedures in business operations. Organizations should also comply with procurement rights, from advertisements to tender awards. Furthermore, they should make the company the frontline agent in reporting any misinformation to protect its reputation. If a newspaper print highlights false information, the company should report the issue and provide true data. Lastly, whistleblowing is necessary for a corrupt state to protect the company’s image.

Conclusively, I have learned that corruption is a global problem that needs urgent attention. The problem is more prevalent in developing countries, necessitating intervention from politically stable nations. Additionally, developed nations such as the United States should invest resources and power in combating this menace in the Middle East and African countries. Unfortunately, corruption denies citizens basic needs such as food and better health care services, in addition to infrastructural development.

Cite this paper

• Chicago (N-B)
• Chicago (A-D)

StudyCorgi. (2023, May 18). Corruption: The Global Problem. https://studycorgi.com/corruption-the-global-problem/

"Corruption: The Global Problem." StudyCorgi , 18 May 2023, studycorgi.com/corruption-the-global-problem/.

StudyCorgi . (2023) 'Corruption: The Global Problem'. 18 May.

1. StudyCorgi . "Corruption: The Global Problem." May 18, 2023. https://studycorgi.com/corruption-the-global-problem/.

Bibliography

StudyCorgi . "Corruption: The Global Problem." May 18, 2023. https://studycorgi.com/corruption-the-global-problem/.

StudyCorgi . 2023. "Corruption: The Global Problem." May 18, 2023. https://studycorgi.com/corruption-the-global-problem/.

This paper, “Corruption: The Global Problem”, was written and voluntary submitted to our free essay database by a straight-A student. Please ensure you properly reference the paper if you're using it to write your assignment.

Before publication, the StudyCorgi editorial team proofread and checked the paper to make sure it meets the highest standards in terms of grammar, punctuation, style, fact accuracy, copyright issues, and inclusive language. Last updated: May 18, 2023 .

If you are the author of this paper and no longer wish to have it published on StudyCorgi, request the removal . Please use the “ Donate your paper ” form to submit an essay.

Along with Stanford news and stories, show me:

• Student information
• Faculty/Staff information

We want to provide announcements, events, leadership messages and resources that are relevant to you. Your selection is stored in a browser cookie which you can remove at any time using “Clear all personalization” below.

As we near the end of a “mega election” year in which as many as 2 billion people will cast ballots globally, concerns about the health of democracy are growing. Among the most frequently cited threats to democratic systems are increased discontent with political parties, the spread of disinformation, despair about the future, and a shift toward authoritarian and extremist discourse.

Also on the list: corruption. A 2020 global survey found high levels of dissatisfaction with democracy in countries where misgovernance is endemic. In Latin America, a growing share of citizens believe corruption is their country’s top problem, coinciding with eroding faith in democratic institutions.

Although the causal relationship between corruption and democracy’s decline may seem apparent, it is hard to prove empirically. Saumitra Jha , an associate professor of political economy at Stanford Graduate School of Business, teamed up with Eduardo Rivera of the Massachusetts Institute of Technology and Enrique Seira of Michigan State University to explore the connection. “We confirmed that corruption does have a causal impact on undermining support for democracy, which people express in a variety of ways: trusting government institutions and one another, willingness to volunteer to support electoral agencies, and voting itself,” Jha says.

Their study focused specifically on “apex corruption” — when politicians at the highest levels misuse public office for private gain. Its findings provide a glimpse into how corrosive this type of corruption is as well as ideas for possible antidotes and lessons for countries where democracy seems fragile, including the United States.

Rot at the top

Jha and his colleagues’ first step was to build a database of high-level corruption scandals in Latin America between 2008 and 2018. A prominent example was Operation Car Wash, the code name of the investigation into a massive bribery and kickback scheme involving major Brazilian companies and politicians.

The researchers also collected surveys about support for democracy and perceptions of corruption during that period. By identifying responses gathered before and after the corruption scandals made headlines, they confirmed that apex corruption reduced trust in democratic institutions and increased preference for authoritarianism. They also found these top-level scandals increased violent protests by 70% and that such effects could linger for several months after the news broke.

The researchers’ next step was a field experiment involving 3,300 people in the Mexican state of Oaxaca during the run-up to the 2021 congressional elections. The region was known as a bastion of support for then-President Andrés Manuel López Obrador (aka AMLO), who’d won the 2018 elections on an anti-corruption platform. By the time of the congressional elections, though, corruption scandals had hit AMLO’s government and his family members.

Participants were shown two videos: one featured AMLO’s brother at a restaurant receiving a thick envelope of money from a government official; the second showed senators and leaders of the two main opposition parties exchanging bribes. Surveys showed that the first video had a greater impact on the viewers’ trust in democracy than the second one. The spillover effect of the first video was particularly corrosive: It reduced people’s trust not only in democracy but also in other citizens.

To counter the effects of apex corruption, the researchers showed participants a custom-made video designed to boost their sense of shared identity. It featured stunning images of Mexico’s natural and architectural landmarks, historical events, and famous personalities, guided by a voice-over reminding viewers, “Mexico always rises up because it is indestructible, inevitable, and the hope that is found again and again.”

Yet its message of national pride only went so far. “I found it deeply emotive, and so did my coauthors, who are both from Mexico,” Jha says. “But even though people thought it was a high-quality production, it did not have the expected result of offsetting the effects of apex corruption.”

The researchers tried another possible antidote: exposing people to financial markets to test whether participating in shared economic gains can impact attitudes toward democracy. Participants were offered about $10, of which they could trade a portion weekly to buy stocks in the main Mexican index. Although less than a third of participants agreed to make these trades, this exercise raised their support for democracy, trust in other citizens, and even voter turnout.

Not just an international problem

Although many Americans associate corruption with developing countries, research finds that perceptions of widespread government malfeasance are comparable in the United States and Latin America. “I was surprised to see that,” Jha says. “This isn’t talked about in many circles, but this perception carries a political message that resonates with people.”

He notes that Americans increasingly believe that private interests are corrupting democracy, which may be linked to calls by U.S. politicians on both sides of the aisle to “drain the swamp.” Former President Donald Trump based his 2016 platform on this pledge. In 2019, then-House Majority Leader Nancy Pelosi promised that Democrats would “drain the swamp of dark-interest money” in Washington, D.C.

Jha is optimistic, however. Just as the study reveals that high-level corruption erodes support for democracy, it also suggests ways to reverse course. “The concept of corruption at the top can also give us agency,” he explains. “That means that honesty at the top can also have the reverse effect. If we see leaders, whether they are elected or not, being explicitly honest and supporting honest business practices, their prominence can change the equilibrium.”