What is the impact of corruption on economic development? 🔊
Corruption has a detrimental impact on economic development, undermining trust in institutions and diverting resources away from essential services. When corruption infiltrates governance, it leads to inefficiencies, inflated costs, and misallocation of public funds, stunting economic growth and exacerbating inequality. Investors may be deterred by high corruption levels, stalling foreign direct investment and economic innovation. Furthermore, it diminishes public service quality, perpetuating cycles of poverty. Addressing corruption is therefore critical for fostering a healthy economic environment, ensuring broad-based development, and enhancing overall societal well-being.
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