Mathew Nolan

Abstract:

Much has been written over the past decades on the deleterious effects bribery and corruption have on economic development and sustainability. . It comes by many names: bribery, kickbacks, grease, soborno, baksheesh, rusvet, mordida, just to name a few. But regardless of the moniker, the impact is usually the same. Whether it concerns provision of basic public services like electricity, public health, or water, to lost revenue from tax dodgers, to individual firms getting preference on sales or service contracts, bribery often acts as a deadweight loss to social welfare and inhibits growth and often sustainability goals. Even humanitarian aid is not immune. But it is part of the fabric of many countries, despite laws enacted and aggressive international efforts to combat it. In some countries it is viewed as necessary to “get things done” when dealing with underpaid public servants, or as a way to facilitate otherwise valid transactions. But when does a transaction cross over from “facilitating” to “debilitating” for an economy, and do such payments ever really advance sustainability objectives? And, are current laws effective in combatting corruption or is more work needed to maximize growth prospects for developing and developed economies? We will examine these questions and consider impacts of corruption, current anticorruption efforts and the realities of the current global environment.