|
|
'Two pc global GDP lost to corruption every year'
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 12 Oct, 2015
Around USD 1-1.5 trillion or around
two percent of global GDP, are lost to corruption every year, president
of the Natural Resource Governance Institute (NRGI) has said.
Speaking
at a panel on integrity in public governance during the World Bank
Group and International Monetary Fund annual meeting on Sunday, Daniel
Kaufmann, president of (NRGI), presented the statistic, result of a
study by the NRGI, an independent, non-profit organisation based in New
York.
However, according to Kaufmann, the figure is only the
direct costs of corruption as it does not factor in the opportunities
lost on innovation and productivity, Xinhua news agency reported.
"The
misallocation of talent away from productive activities and innovation"
has a costlier impact on countries suffering from corruption in the
long term.
A country that addresses corruption and significantly
improves rule of law can expect a huge increase in per capita income in
the long run, the study showed.
It will also see similar gains in reducing infant mortality and improving education, said Kaufmann.
Countries
with better control of corruption averaged a five percent improvement
in their budget deficits or surplus in the long term, he said.
Based on the findings of the study, Kaufmann called for a new definition of corruption.
Believing
that corruption is no longer a simple transaction between two parties,
he called it a "tax on the poor and, increasingly, the middle class...
leading to higher levels of inequality".
"Corruption has shifted
to large colluding networks, such as FIFA. These networks shape the
rules of the game, institutions, policies and contracts. This is more
insidious than petty corruption," he said.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|