Book chapter(print)2002

Corruption and Development: A Review of Issues

Bardhan, Pranab

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Abstract

The effects of political corruption on a nation's administrative efficiency & economic development are explored. Multiple arguments that perceive political corruption as accelerating political & economic processes are critiqued. It is contended that the centralization of political corruption produces fewer negative consequences than noncentralized bribery; & bribes are generally larger in autocratic governments than in democratic ones. How political corruption can stunt economic development is identified, eg, an official's decision to require bribes before granting investment licenses actually reduces individuals' incentives to invest. Literature is also reviewed to determine factors that contribute to varying rates of incidence of political corruption in different nations, eg, the probability that one official will expose another official's acceptance of bribes. 34 References. J. W. Parker

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