What is the relationship between property rights, corruption, and economic progress? How important are anticorruption efforts in the effort to improve a country’s level of economic development?
Innovation and entrepreneurship are widely recognize as important to long run economic growth. Innovation and entrepreneurship flourish in environments that are free of corruption and where proprietary property is protected. Support for companies and individuals is important to this process. Individuals or companies that must pay bribes to obtain licenses or face other types of corrupt behavior are less likely to carry out the activities necessary for economic growth and progress. Similarly, companies and individuals are likely to shy away from environments where property rights are not well protected.
Corruption in a country, specifically in a country’s government leadership, can halt economic progress. Often times, in developing economies, corruption comes in the form of the powerful elite taking advantage of their position to benefit themselves at the expense of the economic progress of the people. Anticorruption efforts protect against this stunting growth.