Evidence paper on corruption

Published by DFID in January 2015

(The paper was written by a team led by Alina Rocha Menocal who was then at the Overseas Development Institute and several others including anti-corruption advisers working for U4 at the time: Nils Taxell, Jesper Stenberg Johnsøn, Aranzazú Guillan Montero, Francesco De Simone, and Kendra Dupuy.)

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Headline messages

What are the factors that facilitate corruption?

• A variety of economic, political, administrative, social, and cultural factors enable and foster corruption.
• Corruption is collective rather than simply individual, going beyond private gain to encompass broader interests and benefits within political systems.
• Corruption is a symptom of wider governance dynamics and is likely to thrive in conditions where accountability is weak and people have too much discretion.
• The collective and systemic character of corruption makes it entrenched and difficult to address.
• Democracy does not in itself lead to reduced corruption.

What are the gender dimensions of corruption?

• There is no conclusive evidence that women are less predisposed to corruption than men.
• Greater participation of women in the political system and political processes is not a “magic bullet” to fight corruption.

What are the effects of corruption on growth and broader development?

• The effect of corruption on macroeconomic growth remains contested, and corruption has not been a determining factor constraining growth.
• Corruption has a negative effect on both inequality and the provision of basic services, disproportionately affecting poor people.
• Lack of trust, reduced legitimacy, and lack of confidence in public institutions can be both a cause and an effect of corruption.
• Corruption has a negative effect on domestic investment and tax revenues.
• At the micro level, corruption imposes additional costs on growth for companies, especially in terms of their performance and productivity.
• The relationship between corruption and fragility varies: it can be a source of conflict but has also been an important stabilizing factor in some settings.
• Corruption has negative consequences for the environment.

What anti-corruption measures are effective?

• Not all types of corruption are the same; differing responses are needed depending on the context (one size does not fit all).
• Anti-corruption measures are most effective when other contextual factors support them and when they are integrated into a broader package of institutional reforms.
• Public financial management reforms are effective in reducing corruption.
• In the right circumstances, supreme audit institutions, social accountability mechanisms, and organized civil society can be effective in combating corruption.

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