This brief overview analyzes corruption and its relationship to economic growth. The brief continues to consider the idea of economist Amartya Sen that development means more than economic growth. Additionally, provided, a quick risk analysis of two countries where corruption is common everyday practice.
Corruption and Economic Growth
What is the relationship between corruption in a country and economic growth? Answer this question. Research indicates corruption weakens an economy. Ho (2001) contends there is a direct relationship between corruption and economic growth (pg. 67). Ho further states “a 1% increase in the corruption level reduces the growth rate by about 0.72% or, expressed differently, a one-unit increase in the corruption index reduces the growth rate by 0.545 percentage points” (pg. 76). Corruption’s relationship to economic growth will always have a negative impact.
Corruption: Good or Bad
There are arguments for and against corruption. Some would argue corruption makes things go easier or bypasses imperfection in the system. Isaiah teaches those who are corrupt have forsaken the Lord (Isaiah 1:4 NIV). A Christian’s opinion should never be for corruption at any level.
Concept of Development
Economist Amartya Sen argues the concept of development should [sic] include more than just economic development.
Factors to Include What other factors does Sen think should be included in an assessment of development? Answer this question. Sen contends (Hill, 2011) the assessment of development should include more measurements of capabilities and opportunities (pg. 65). Sen indicates development is a process of expanding freedoms and barriers to freedom have to be eliminated (pg. 65). Sen suggests a “political freedom” measurement should be included in the Human Development Index (HDI) (pg.65).
Adoption of Sen’s Views How might the adoption of Sen’s views influence government