Corruption, Governance and Security: Challenges for the Rich Countries and the World
AbstractTraditionally, national governance and corruption challenges have been seen as: i) particularly daunting in the poorer countries, with the richer world viewed as exemplary; ii) anchored within a legalistic framework and focused on formal institutions, iii) a challenge within public sectors, and, iv) divorced from global governance or security issues - seen as separate fields. Through an empirical approach based on the analysis of the 2004 survey of enterprises by the World Economic Forum, we challenge these notions and portray a more complex reality. We suggest that the undue emphasis on narrow legalism has obscured more subtle yet costly manifestations of misgovernance, which afflict rich countries as well. Emphasis is also given to measurement and analysis of misgovernance when the rules of the game have been captured by the elite through undue influence. We construct a new set of ethics indices, encompassing forms of (legal) corruption not subject to measurement in conventional (illegal) corruption indicators. It is found that manifestations of legal corruption may be more prevalent than illegal forms, such as outright bribery, and particularly so in richer countries. Further, we find that governance constraints, and corruption in particular, is a key determinant of a country's global competitiveness. These findings challenge traditional notions of what constitutes the country's 'investment climate', and who shapes it. It is also found that illegal forms of corruption continue to be prevalent in the interaction between transnationals of the rich world and the public sectors in many emerging countries. Finally, we suggest an empirical link between governance and security issues.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8207.
Date of creation: Oct 2004
Date of revision:
Other versions of this item:
- Daniel Kaufmann, 2004. "Corruption, Governance and Security: Challenges for the Rich Countries and the World," Public Economics, EconWPA 0411009, EconWPA.
- H4 - Public Economics - - Publicly Provided Goods
- K2 - Law and Economics - - Regulation and Business Law
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Krishna Chaitanya Vadlamannati & K K Shakya Lahiru Pathmalal, 2009. "Exploring the Relationship Between Military Spending and Human Rights Performance in South Asia," Working Papers id:1833, eSocialSciences.
- Krishna Chaitanya Vadlamannati & Artur Tamazian, 2008. "Impact Of Institutional Quality On Human Rights Abuses In Transition Economies," William Davidson Institute Working Papers Series wp928, William Davidson Institute at the University of Michigan.
- Goetz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2008.
"What makes countries initiate WTO disputes on food-related issues?,"
Discussion Papers, University of Bonn, Institute for Food and Resource Economics
56974, University of Bonn, Institute for Food and Resource Economics.
- Götz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2010. "What makes countries initiate WTO disputes on food-related issues?," Food Policy, Elsevier, Elsevier, vol. 35(2), pages 154-162, April.
- Goetz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2008. "What makes countries initiate WTO disputes on food-related issues?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium, European Association of Agricultural Economists 44335, European Association of Agricultural Economists.
- Utz Weitzel & Sjors Berns, 2006.
"Cross-border takeovers, corruption, and related aspects of governance,"
Journal of International Business Studies,
Palgrave Macmillan, vol. 37(6), pages 786-806, November.
- G.U. Weitzel & S. Berns, 2006. "Cross-border takeovers, corruption, and related aspects of governance," Working Papers, Utrecht School of Economics 06-03, Utrecht School of Economics.
- Stephane Straub, 2004.
"Opportunism, Corruption and the Multinational Firm’s Mode of Entry,"
ESE Discussion Papers, Edinburgh School of Economics, University of Edinburgh
102, Edinburgh School of Economics, University of Edinburgh.
- Straub, Stephane, 2008. "Opportunism, corruption and the multinational firm's mode of entry," Journal of International Economics, Elsevier, Elsevier, vol. 74(2), pages 245-263, March.
- Salinas-Jimenez, M del Mar & Salinas-Jimenez, Javier, 2007. "Corruption, efficiency and productivity in OECD countries," Journal of Policy Modeling, Elsevier, Elsevier, vol. 29(6), pages 903-915.
- Dalla Pellegrina, L. & Masciandaro, D. & Pansini, R.V., 2013. "The central banker as prudential supervisor: Does independence matter?," Journal of Financial Stability, Elsevier, Elsevier, vol. 9(3), pages 415-427.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.