Corruption undermines market economies by creating an uneven playing field that favors those businesses that will pay bribes in their operations – and greatly disadvantaging those businesses that refuse. Not only does that raise the cost of doing business, but it undermines a market economy in which all actors have an opportunity to participate. As Michael Hershman states in this video, businesses can play an important role in fighting corruption by working with civil society and other private sector organizations to collectively condemn participation in corruption.
In addition to distorting market economies, however, corruption also destabilizes democratic institutions. When a few rich oligarchs pay public officials for political favors, policymakers tend to exclude input from other voters and stakeholders. If revenue for development only reaches those areas from which public officials draw their political support, citizens lose faith that their government works for everyone. If anti-corruption efforts are to improve democratic governance, decisions must be made in a transparent and open manner. That makes decision-makers accountable to stakeholders, reduces opportunities for corruption, and strengthens democratic governance.
These discussions played an important role in CIPE’s Democracy that Delivers event last year. The video above contains a few words of wisdom from Greg Lebedev, Boris Begovic, Judy Shelton, and Betty Maina, who develop a link between fighting corruption and strengthening democracies.
Published Date: December 09, 2010