09 October 2009

What does corruption have to do with development?

A commentator suggests that a "tolerable administration of justice" needs to incorporate "zero-tolerance of corruption." I agree about the importance of predictability, but corruption is a pretty broad concept, and is it always the most binding constraint?

Mushtaq Khan at SOAS has some great work skewering the cross-country approach to corruption and growth which dominates the literature. This chart in particular articulates that old favourite: Correlation does not necessarily mean causation.


Update: Mushtaq Khan and Daniel Kaufmann are on the next Development Drums, send your questions to Owen Barder


Ranil Dissanayake said...

You're completely right here, Lee. I'm going to post another lengthy rant about this shortly. I was taught by Mushtaq back when I did my MSc, and he's brilliant, particularly on corruption.

Lee said...

I was never taught by him but I went to his inauguration lecture which was great. Generally I feel SOAS is a bit too critical of the 'mainstream' and not quite constructive enough. But Khan is still the best person I've read on corruption.

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