Columbia International Affairs Online: Working Papers

CIAO DATE: 05/2014

The Costs of Corruption

Daniel F. Runde, Sadika Hameed

February 2014

Center for Strategic and International Studies

Abstract

Corruption remains a priority area for both the private sector and development implementers. However, there is no consensus on practical steps to address it on a global level. This issue is especially important in the context of international trade and development as the private sector plays an increasing role in development outcomes. Moreover, countries with the weakest governance structures tend to be those that most need economic development. This report reviews the literature surrounding corruption; identifies the opportunity costs of corruption; and posits actionable steps for the private sector to effectively address corruption worldwide, as well as ways for private-sector actors to work with governments to achieve this goal.