US$ 2 trillion lost to bribery and corruption every year, (2% of global GDP), claims IMF

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Christine Lagarde said direct economic costs of corruption are clear, but indirect costs may be even worse “leading to low growth and greater income inequality.”
Christine Lagarde said direct economic costs of corruption are clear, but indirect costs may be even worse “leading to low growth and greater income inequality.”
Christine Lagarde said direct economic costs of corruption are clear, but indirect costs may be even worse “leading to low growth and greater income inequality.”

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Mercopress
US$ 2 trillion lost to bribery and corruption every year, (2% of global GDP), claims IMF

IMF chief says the direct economic costs of corruption are clear. But the indirect costs may be even worse “leading to low growth and greater income inequality.“

”It undermines trust in government and erodes the ethical standards of private citizens,“ she said this week in London.

Lagarde says investors look for countries whose public officials are high on the integrity list because they want assurances they will not have to constantly pay bribes.

The IMF defines corruption as ”an abuse of public office for private gain.” But it also includes tax evasion and arbitrary tax exemptions that give citizens little incentive to pay taxes themselves.

Bribery and corruption weaken banking systems and shut people out of the financial markets.

The IMF also says the social and environmental costs of corruption are significant, leading to poorly enforced regulations, more pollution, and destruction of natural resources.

The report recommends nations adopt international standards for fiscal and financial transparency to fight corruption and make the threat of prosecution for such crimes credible. It also calls a free press a key player in uncovering the problem.


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2 COMMENTS

  1. This is the pot calling the kettle ‘black’ Of course everyone knows that both of them are very ‘black’

  2. Tragic. And of course there is no legal nor alien possibility to determine the US/UK grey economy stake in that number, but for all others that are surely corrupt there are ‘Panama papers’ and frequent voodoo dolls. How could IMF founder(s) ever be corrupt? And half of planet don’t even have that much country GDPs combined. In the US and UK corruption is called ‘government lobbying’, otherwise guys like Stephen Hadley or Tony Blair would never have a job in politics. Or to believe such western propaganda that all those hawkish think-tanks are non-profit?

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