Corruption, Crime and Economic

Growth
Syed Mahfujul Haque Marjan
Course Teacher
 Introduction
 The relationship between corruption, crime
and economic growth seems obvious to most
people.

 Both crime and corruption increase

uncertainty and the cost of doing business,
so crime and corruption must discourage
entrepreneurial activities that cause growth.

 However, the relationship between crime and

growth and corruption and growth is
much more complex than it first appears.
 Corruption is difficult to define and measure precisely.
Corruption, whether public or private, violates a principal–
agent relationship for the benefit of the agent.

 Public corruption occurs when a government official uses

state property or authority for their own private benefit or
the benefit of their friends rather than for promoting the
general interest.

 Defend as such, corruption can be legal, such as when

campaign contributions influence legislative policy in the
USA, or illegal, such as when a politician explicitly takes a
cash payment for themselves for the equivalent legislative
action.
 Measuring corruption is equally difficult. Using
hard empirical data such as the amount of
bribes, or number of corruption convictions in a
country, are inadequate measures because
differences in exposing corruption vary greatly
across countries.

 The leading cross-country measure of corruption

is the Corruptions Perceptions Index (CPI)
published by Transparency International. It is a
composite index of 13 different polls and
surveys that measure the perceived level of
corruption in countries.
 Definition of Corruption
• It is very a very challenging task to define a
complex phenomenon like corruption
because it is viewed differently from different
aspects. Although there is rapidly growing
interests among policy makers, NGOs ,donor
agencies, academicians etc. to identify the
causes and consequences of corruption, still
no consensus has been made to define
corruption comprehensively in existing
literatures.
In general, the term “corruption” is always used
to label a large set of illegal activities ranging
from “bribery” to “extortion”, from
“embezzlement” to “nepotism”. The World
Bank’s definition of corruption is “The abuse
of public office for private gain.
Corruption is every transaction between actors
from the private and public sectors through
collective utilities that are illegally transformed
into private gains”.
• Corruption can be defined in a broader
perspective as the exploitation of public
resources and avoidance of public laws that
results in unfair personal gains, lessen
economic growth rate and encourages greater
inequality of income.
 Corruption and Economic Growth
in Bangladesh
• Bangladesh poses a positive relation between
corruption and growth. This relationship has
been significant since 1977 when Bangladesh
embarked on a market economy and unleashed
private investment, but failed to implement
corresponding reforms in bureaucracy and
major public utilities.

• As a result, consumers with rising income and

producers with thriving business opportunities
confronted public regulatory bodies for utilities
and permits, and indulged in increasing
corruption.
• Thus, both corruption and economic growth
increased with the pace of privatisation and the
market economy in Bangladesh. Hence, a positive
association between corruption and growth,
though spurious and co-incidental, becomes
apparent.
• Bangladesh is an interesting case to study the
interaction between corruption and growth. The
country, on one hand, is noted for its high level of
corruption. On the other hand, Bangladesh has
been registering 5-7 percent growth in recent
decades.
“‘এতই যদি িুর্নীদত, তাহলে জিদিদি বালে কের্ন?’ কযর্ন
িুর্নীদত হলে জিদিদি বাোর সুলযাগ কর্নই! অথচ
অথর্নীদতলত
থ কের্নলির্ন বােলেই জিদিদি বালে। কসই
অলথ র থ াস্তা, োেভার্থ , দিি বা ফ্লাইওভার দর্নর্ালে
থ যতই
েুর্িার্ কহাে; এর্দি, কর্নতা, ঠিোিার দর্লে যতই
ভাগ-বালর্ায়ারা েরুে, যতই োদিলয় োদিলয় প্রেল্প
বযয় বােুে, র্াোর কের্নলির্ন কতা বােলে, তাই
জিদিদিও বােলব। কযর্র্ন এে রাস্তা অর্নথে থ িশবার
োর্াোঠর্, ভাঙাভাঠঙ েরলেও জিদিদি বালে, কিলশর
অলধে থ র্ার্নুষ িাদর্নিষূ ে, বায়ুিষ
ূ ে, বা দসসািষূ লের
োরলে ভয়াবহ সব অসুখ–দবসুলখ আক্রান্ত হলয়
হাসিাতালে ভদতথ হলেও জিদিদি বালে, ঢাোর
‘োইিোইর্ন’ খাে এবং র্নাোগুলো িখে েলর
প্রভাবশােীলির বহুতে র্ালেথর্ ততদর হলেও জিদিদি
বালে। বাচ্চালির কখোর সবুি র্ািগুলো িখে েলর
দবজডং উিলেও জিদিদি বালে।” তিদর্নে প্রথর্ আলো,
০৩ এদপ্রে, ২০১৮