Can corruption and economic crime be controlled in developing economies – and if so, is the cost worth it?
| Date | 08 August 2008 |
| Pages | 273-283 |
| Published date | 08 August 2008 |
| DOI | https://doi.org/10.1108/13685200810889425 |
| Author | Adam Salifu |
| Subject Matter | Accounting & finance |
Can corruption and economic
crime be controlled in developing
economies – and if so, is the cost
worth it?
Adam Salifu
Department of Development Studies, University of Cambridge, Cambridge, UK
Abstract
Purpose – The purpose of this paper is to examine the question of whether corruption and economic
crime can be controlled in developing economies and whether the cost of doing that can be justified.
It also explores the implications of corruption in the development of developing economies.
Design/methodology/approach – The paper reviews a range of published articles (1964-2005),
which offer theoretical and empirical research on corruption, economic crime and development.
Themes discussed range from; the causes, implications, controls and the cost of controlling economic
crime and corruption in developing economies.
Findings – Provides a critical analysis of the debate on corruption and economic crime in developing
economies. The paper generally concludes that no single institution can be used to control corruption
and economic crime and efforts to control these phenomena need to come from multiple fronts. The best
way to tackle corruption in developing countries is through sector-by-sector control and that efforts to
eliminate corruption are unlikely to be entirely successful in developing countries, not even in the
developed countries.
Practical implications – The paper reminds developing countries to adopt measures that best suit
their local circumstances in setting up anticorruption agencies/institutions while taking into
consideration the borderless nature of crime – economic crime and corruption. Policy makers,
especially in developing countries should re-examine both local and international tools for combining
economic crime and corruption to ensure development.
Originality/value – Although the paper argues along similar lines with the neo-liberal approach to
combating economic crime and corruption in developing countries, a major departure of this paper is
that it proposes the need for a global effort to corruption and economic crime as a result of the
increasing borderless nature of crime in this present age of information communication technology.
Keywords Corruption, Crimes,Developing countries
Paper type Research paper
1. Introduction
In recent years, economic crime and corruption have become issues of major economic
and political significance in many countries across the globe, especially in developing
economies. As Robinson (1998) argues, while corruption is a feature of all societie s
to varying degrees, it is a particular concern for developing countries because it
undermines economic growth, discourages foreign investment and reduces the
resources available for infrastructure, public services and anti-poverty programmes. It
may also undermine political institutions by weakening the legitimacy and
accountability of governments (Johnston, 1997).
The transparency international (TI) corruption perception index (CPI), the influential
anti-corruption watchdog, ranks 70 per cent of 133 countries as below the median score,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
Corruption and
economic crime
273
Journal of Money Laundering Control
Vol. 11 No. 3, 2008
pp. 273-283
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685200810889425
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