Abstract

After years of being treated as a taboo subject, the issue of corruption has begun to attract serious attention from the aid donor community. Corruption is, in its simplest terms, the abuse of power most often for personal gain or for the benefit of a group to which one owes allegiance. This book achieves a balance between a theoretical and a practical discussion of corruption and its causes and remedies. It explores the interaction between corruption and economic performance. While the economic costs of corruption are difficult to measure, some studies suggest that its costs would include: An additional 3-10 percent increase for the price of a given transaction to speed up the delivery of a government service. Inflated prices for goods by as much as 15-20 percent. Diverted tax revenues that can cost the government as much as 50 percent of its tax revenues. This volume focuses on the following: Lessons learned with two examples of good practice (Hong Kong and Singapore). The economic and institutional approaches to anti-corruption efforts, with particular attention to the role of the public sector and civil society, including the media. Case studies on Uganda, Tanzania, and Sierra Leone. Lessons learned indicate that an effective anticorruption strategy would be multifaceted, combining economic reforms, and strengthening national integrity institutions. And political commitment would be key to sustaining this effort.

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