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CORRUPTION (Department of Economics) PowerPoint Presentation

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About This Presentation

Slide 1 - CORRUPTION Transition Economies Presented By AJ Cericola
Slide 2 - Definition of Corruption Misuse of Power for private gain  Bribery  Extortion  Manipulation of Laws It’s all about growth…
Slide 3 - Corruption Type 1: State Capture Corruption  Influencing Laws, Regulations, Policies for own advantage
Slide 4 - Corruption Type 2: Administration Corruption  Intentional imposition of distortions in the prescribed implementation of existing laws
Slide 5 - Corruption Across the Globe
Slide 6 - Corruption and Growth
Slide 7 - Corruption and Development
Slide 8 - Sectors of Corruption: Enterprise Growth SME’s are most important for jobs, innovation, and growth 1. Labor force and new jobs 2. Less capital intensive – more labor 3. Product innovative, not process innovative 4. More financially constrained; represent 94% of business finance 5. Contribute to growth in recession more than larger firms
Slide 9 - Bribes Paid
Slide 10 - Sectors of Corruption: Investment Much economic theory assume positive relationship between investment and growth 4 areas Corruption affects investment: 1. Total investments 2. Size and composition of FDI 3. Size of public investment 4. Quality of decisions and projects
Slide 11 - Sectors of Corruption: Investment Studies show that improvements in the corruption index (i.e. reduction in corruption) can increase investment GDP ratio Comparison: 1% increase in MTR on FDI = reduction of incoming FDI ~ 3.3% 1pt. increase on corruption index = reduction in the flow of FDI ~ 11%
Slide 12 - Anti-Corruption: What can be done?
Slide 13 - Case Study: Poland 1956: Khrushchev denounces Stalin Worker’s strike in Poznan starts market socialism and limited civil liberties 1980: emergence of Solidarity 1989: parliamentary political system with proportional representation Strong public administration skills
Slide 14 - Case Study: Croatia & Slovak Republic Advanced among Central & Eastern European countries Nationalism Concentration of political power 1994: worst year of corruption for Slovak Republic and Croatia
Slide 15 - Croatia
Slide 16 - Slovak Republic
Slide 17 - Case Study: Latvia State Capture is high Economy is highly concentrated: political parties run close with economic interests 1995: adoption of conflict of interest laws 1997: Corruption Prevention Council
Slide 18 - Latvia
Slide 19 - Transparency: CPI Index
Slide 20 - After thoughts… Why does Poland have a decreasing CPI? Do they not have an anti-corruption strategy? Can bad infrastructure cause corruption? Your Questions…
 

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