Political corruption in the developing and newly industrialised states

Distinguishing between less developed, or developing, countries, on the one hand, and newly industrialised countries (NICs) on the other, the chapter discusses, first, the extent and causes of corruption in these countries; second the effects of corruption there, and finally, attempts to combat it. The chapter argues that the problems of corruption in the two types of country are of a somewhat different order of magnitude deriving, ultimately, from their distinctive characteristics. These are, in the case of the developing countries, limited manufacturing sectors; dependence on raw materials, or agricultural commodities, for export earnings (and therefore unusually heavily reliance on world markets over which they have little control); weak states. In the NICs, stronger states have enabled them to undergo rapid industrialisation and urbanisation such as to lead them, in terms of (what is often export-led) growth, to outpace their developing-country counterparts. Consequently, relatively high levels of corruption in the NICs have not been as strong a break on economic and social improvement as they have in the developing countries.