Poor countries lose $1.4T to corruption in 2008

Corruption, which always takes place in poorer countries, has hurt economic performance by reducing private investments, by adversely affecting the quantity and quality of public infrastructure, by reducing tax revenue, by resulting in a shallower and less efficient financial system, and by reducing human capital formation, says a 2011 report by the Paris-based Financial Action Task Force. In its report titled "Laundering the Proceeds of Corruption," the task force claimed that corruption can also have adverse distributional effects as it hurts the poor disproportionately, adding that countries with high levels of corruption achieve lower literacy rates, higher mortality rates, and overall have worsen human development outcomes. The task force estimated that between USD 1.26 trillion to USD 1.44 trillion disappeared from the national coffers of poorer countries in 2008 due to corruption. "These numbers have increased and corruption plays a significant role in the il...