Enrichment with Growth

This essay first sets out the "business model" problems entailed by corruption and their effects as well as implications for economic growth. Key issues are the need for secrecy and co-operation with partners in crime. Dealing with these leads to behavior which is ostensibly bizarre and undermines economic efficiency, but is in fact a rational way of managing corrupt practices. However, different economic policies can be pursued that are compatible with corruption. Some are more pro-growth than others. Pro-growth corrupt policies hold the promise of enriching the corrupt elite more in absolute terms even though the share of national wealth diverted may be smaller. The most effective pro-growth polices that help enrich an elite resemble fairly orthodox economic policy prescriptions. Eventually the abolition of corruption holds the greatest promise to enhance growth and with it the wealth of elites. The expectation of such growth may explain why more and more political elites pursue "sound" economic policy and may embrace anti-corruption efforts, while securing legal ways of enrichment for themselves. Country examples illustrate policy approaches with different combinations of enrichment and growth properties.

Bibliographic Details

Main Author:	Klein, Michael
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2011-10-01
Subjects:	ABUSE, ACCOUNTING, ALLOCATION OF FUNDS, ALTERNATIVE EMPLOYMENT, ANTI-CORRUPTION, ARBITRATION, ASSETS, AUCTION, BANK ACCOUNTS, BANKING SYSTEM, BANKRUPTCY, BANKS, BASIC, BRIBE, BRIBES, BUSINESS ASSOCIATIONS, BUSINESS OWNERS, BUSINESS RELATIONS, BUSINESS SUCCESS, CIVIL SERVANTS, CODES, CORPORATE GOVERNANCE, CORRUPT, CORRUPT PEOPLE, CORRUPT PRACTICES, CORRUPTION, COST ESTIMATES, CRIME, CRISES, CRONY, DEBT, DEMOCRACY, DEVELOPMENT ECONOMICS, DISCRETION, DIVERSIFIED PORTFOLIO, DOMESTIC MARKET, ECONOMIC ACTIVITY, ECONOMIC ANALYSIS, ECONOMIC DEVELOPMENT, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC POLICIES, ECONOMIC POLICY, ECONOMICS, ENGINEERING, EQUIPMENT, ETHNIC GROUP, ETHNIC GROUPS, EXPENDITURES, EXTERNAL SHOCK, FAMILIES, FINANCES, FINANCIAL CRISIS, FINANCIAL PERFORMANCE, FOREIGN EXCHANGE, GOVERNANCE STANDARDS, GOVERNMENT FINANCES, GOVERNMENT FUNDING, GRAND CORRUPTION, HOLDING, HOLDINGS, INCOME LEVEL, INCOME LEVELS, INNOVATION, INTERNATIONAL BANK, LAND REFORM, LAND REFORMS, LAWYERS, LEGAL RIGHT, LOSS STATEMENTS, MARKET ECONOMIES, MARKET FAILURE, MINISTER, MINISTERS, MINORITY SHAREHOLDERS, MONOPOLY, OIL BOOMS, OIL PRICES, OPERATING COSTS, PENSION, PENSION FUND, PERSONAL GAIN, POLICE, POLICES, POLICY ENVIRONMENT, POLITICAL LEADERS, POLITICAL SCIENTISTS, POLITICIANS, PORTFOLIO, PORTFOLIOS, PREFERENTIAL, PRIVATE DEBT, PRIVATE DEBT MARKETS, PRIVATE GAIN, PRIVATIZATION, PROCUREMENT, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PROSECUTION, PUBLIC POLICY, PUBLIC-PRIVATE PARTNERSHIPS, REGISTRATION SYSTEM, RENTS, RESIDUAL RISK, RETURN, RULE OF LAW, RULING PARTY, SCANDAL, SOURCES OF INCOME, SUPPLIERS, TAX, THEFT, TRANSACTION, TRANSACTION COSTS, TRANSPARENCY, TRIALS, UNION, VALUATION, WEALTH CREATION,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111024140343 http://hdl.handle.net/10986/3621
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