Saturday, September 26, 2020
Home Uncategorized Two percent global GDP lost to corruption every year

Two percent global GDP lost to corruption every year

Lima: Around $1-1.5 trillion or around two percent of global GDP, are lost to corruption every year, president of the Natural Resource Governance Institute (NRGI) has said.

Speaking at a panel on integrity in public governance during the World Bank Group and International Monetary Fund annual meeting on Sunday, Daniel Kaufmann, president of (NRGI), presented the statistic, result of a study by the NRGI, an independent, non-profit organisation based in New York.

However, according to Kaufmann, the figure is only the direct costs of corruption as it does not factor in the opportunities lost on innovation and productivity, Xinhua news agency reported.

“The mis-allocation of talent away from productive activities and innovation” has a costlier impact on countries suffering from corruption in the long term.

A country that addresses corruption and significantly improves rule of law can expect a huge increase in per capita income in the long run, the study showed.

It will also see similar gains in reducing infant mortality and improving education, said Kaufmann.

Countries with better control of corruption averaged a five percent improvement in their budget deficits or surplus in the long term, he said.

Based on the findings of the study, Kaufmann called for a new definition of corruption.

Believing that corruption is no longer a simple transaction between two parties, he called it a “tax on the poor and, increasingly, the middle class… leading to higher levels of inequality”.

“Corruption has shifted to large colluding networks, such as FIFA. These networks shape the rules of the game, institutions, policies and contracts. This is more insidious than petty corruption,” he said.

(IANS)

STAY CONNECTED

19,140FansLike
362FollowersFollow
1,776FollowersFollow

Most Popular

Excessive Alcohol Affects Cognitive Brain Function

A new study released this week describes how excessive alcohol-consuming too much alcohol, too fast — affects the brain, leading to anxieties and other...

Playback Singer S. P. Balasubrahmanyam Dies at 74

Sripathi Panditaradhyula Balasubrahmanyam also known to as S. P. Balu or S. P. B. was not just an Indian musician or playback singer instead...

Weather During Winter Could Increase Spread of COVID

As winter brings shorter days and lower temperatures to the Northern Hemisphere, there is a chance we could see more COVID-19 cases. But experts say...

Dogs That Sniff Coronavirus Layout Safer Travel: Helsinki

Helsinki Airport is getting creative when it comes to operating safely in the age of COVID-19. Beginning this week, travelers arriving at Finland's busiest...

Common Diabetes Drug Associated With Lower Heart Issues

Drugs known as sodium-glucose cotransporter 2 (SGLT2) inhibitors are associated with a lower risk of major heart problems in patients with type 2 diabetes...

Taapsee Pannu Recalls her First Attempt as a Stand-up Comedian

Actress Taapsee Pannu has shared what was going on in her mind before she tried stand-up comedy last year. Follow NewsGram on Facebook to stay...

Into The Wild: Bear Grylls’ Episode Featuring Akshay Kumar Sets Record

Akshay Kumar has set a new record. This time, though, the big-screen superstar has made history on television. The recent episode of British adventurer Bear...

Transparency: Pradarshita- The Unspoken Story of How Dilli was Cheated by its Own

By Sudisha Limbu In April this year, Munish Raizada Films debuted Transparency: Pardarshita, a Hindi-language political documentary that talks about the India Against Corruption (IAC)...

Recent Comments