What are the principal causes and costos of corruption? This article examines these questions and suggests specific ways to enhance anticorruption efforts in developing and transition economies. Certain Claims about corruption in developing countries are often heard: bricery and corruption can have positive effects; corruption is endemic everywhere; the costos of eddressing corruption are prohibitively high, and the few resources that exist should be spent on enforcement measures, such as a high-tpofile government watchdog agencies. But, in fact, there is increasing evidence that the economic costs of corruption are enormous; levels of corruption vary widely among devolping countries; controlling corruption is feasible; and strategies to address corruption need to pay more attention to its root causes- and thus to the roles of incentives, prevention, and specific economic and institutional reforms.

World Bank Institute (WBI)