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Corruption as an obstacle to development in developing countries: a review of literature

Corruption as an obstacle to development in developing countries: a review of literature Purpose – Contemporary literature has paid scholarly attention to corruption from a variety of competing perspectives. However, broader accounts of the impact of corruption on development in developing countries are relatively scarce. The purpose of this paper is to examine the effect of corruption as a social impediment to development, which has a devastating effect on developing countries. Design/methodology/approach – The paper explores the relevant literature and the different perspectives that have been developed and conducted for investigating corruption in developing countries. The paper uses publicly available evidence to show that political, economic elite engaged in corrupt practices. Findings – The evidence shows that socio‐political and economic development, politics, power, history and globalisation have continued to reproduce and transform the institutional structures and actors which have facilitated corrupt practices in developing countries. The review shows that large sums of government revenue have been undermined by the corrupt practices of the political and economic elite (both local and international), which have enriched a few, but impoverished most. Practical implications – The paper seeks to bring the anti‐social activities of political, economic and professionals under scrutiny and offers some suggestions for reforms. Social implications – Corruption has played a major role in causing serious damage to the economic and social landscape in developing countries. This in turn, has undermined social welfare and also investment in the public services, thereby eroding the quality of life and producing a decline in average life expectancy. Originality/value – The paper is a general review of literature and evidence on contemporary issues. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Money Laundering Control Emerald Publishing

Corruption as an obstacle to development in developing countries: a review of literature

Olatunde Julius Otusanya
Journal of Money Laundering Control , Volume 14 (4): 36 – Oct 11, 2011
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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1368-5201
DOI
10.1108/13685201111173857
Publisher site
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Abstract

Purpose – Contemporary literature has paid scholarly attention to corruption from a variety of competing perspectives. However, broader accounts of the impact of corruption on development in developing countries are relatively scarce. The purpose of this paper is to examine the effect of corruption as a social impediment to development, which has a devastating effect on developing countries. Design/methodology/approach – The paper explores the relevant literature and the different perspectives that have been developed and conducted for investigating corruption in developing countries. The paper uses publicly available evidence to show that political, economic elite engaged in corrupt practices. Findings – The evidence shows that socio‐political and economic development, politics, power, history and globalisation have continued to reproduce and transform the institutional structures and actors which have facilitated corrupt practices in developing countries. The review shows that large sums of government revenue have been undermined by the corrupt practices of the political and economic elite (both local and international), which have enriched a few, but impoverished most. Practical implications – The paper seeks to bring the anti‐social activities of political, economic and professionals under scrutiny and offers some suggestions for reforms. Social implications – Corruption has played a major role in causing serious damage to the economic and social landscape in developing countries. This in turn, has undermined social welfare and also investment in the public services, thereby eroding the quality of life and producing a decline in average life expectancy. Originality/value – The paper is a general review of literature and evidence on contemporary issues.

Journal

Journal of Money Laundering Control – Emerald Publishing

Published: Oct 11, 2011

Keywords: Corruption; Developing countries; Economic development; Political elite; Multinational companies

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