How Corruption Affects Emerging Economies?

Economies that are afflicted by a high level of corruption -- which involves the misuse of power, whether in the form of money or authority, in order to achieve certain goals in illegal, dishonest or unfair ways -- are not capable of prospering as fully as those with a low level of corruption.

Corrupted economies are just not able to function properly because corruption prevents the natural laws of the economy from functioning freely. As a result, corruption in a nation's political and economic operations causes its entire society to suffer.

According to the World Bank, the average income in countries with a high level of corruption is about a third of that of countries with a low level of corruption. Also, the infant mortality rate in such countries is about 3 times higher and the literacy rate is 25% lower.

No country has been able to completely eliminate corruption, but studies show that the level of corruption in countries with emerging market economies is much high.

Corruption in its many forms (bribery, nepotism, fraud, embezzlement) adversely impacts the economies and societies of affected nations.