CORRUPTION AND ECONOMIC GROWTH

Impact of Corruption on Economic Growth of Central Asian Countries

Impact of Corruption on Economic Growth of Central Asian Countries

Introduction

Recent probes of international monitoring agencies in cities and towns across the Central Asian countries have uncovered widespread corruption among Central Asian states. An eight-month investigation of the transparency international that ended in October 2009 reported that majority of Central Asian countries governments are involved under various acts of misconduct (Trenin, 2007). Widespread corruption has prompted some observers to question whether corruption has become endemic to economic growth and establishment of state and to ask how best to tackle the problem.

While instances of corruption in Central Asian countries grab headlines, some analysts say that other forms of corruption, such as taking bribes or lying about evidence, may be more widespread and can be equally damaging to the criminal justice system in these countries. Although corruption occurs in many forms, it usually involves the misuse of police authority for material rewards or personal gain (OECD, 2011). In some cases, government officials have been convicted for accepting payoffs to overlook illegal activities, for providing false testimony and for submitting false economic reports. Some government representatives have stolen money from the national accounts and kept or sold the national property in an illegitimate manner. Many experts say that corruption is also inextricably linked to negative economic growth of the country (Mayhew, 2010). 

Corruption is an illegal act that occurs when a person abuses his power to turn a profit for himself, his families, or his friends (Heyneman, 2004). It requires the participation of two actors: one for his position of power can offer something valuable and one that is willing to pay a "bite" or bribe to get it. Corruption breaks the social structure of the country as it reduces confidence in the institutions, government, and justice system. It also affects the ethical standards of society as a whole (Guardian, 2010). To the extent that corruption is widespread, ethical scruples are lost.

The project is about investigative the impact of corruption on the economic growth of Central Asian countries. Notable devastating impact of the corruption has been observed on the economic degradation of the country. Corruption in its massive manifestation directly threatens the security of the state, and its impact on the economy could be very damaging (Heyneman, 2004). These actions can be called idle speculation; however, it is now necessary to firmly tackle the speed and performance of the authorities bound by decisions (Guardian, 2010). Corruption occurs where these decisions are made very slowly. The explanatory variables that I have decided to look at are as follows:

Volume of corruption made in a year

Corruption Index

Changes in the GDP level

Corruption level of Central Asian and European Countries

Changes in the education level

Changes in the health level

These variables will be assessed against the economic development of the Central Asian countries. Economic development will be measured in terms of net change in the economic growth level (that is measured in percentage) with respect to prevailing interest rate in the economy (Mayhew, 2010). This research includes assessing the effects of corruption on ...