Saturday, September 23, 2017

Corruption in Latin America: Taking Stock, by David Lipton, Alejandro Werner y Carlops Gocalvez

Corruption continues to make headlines in Latin America. From a scheme to shelter assets leaked by documents in Panama, to the Petrobras and Odebrecht scandals that have spread beyond Brazil, to eight former Mexican state governors facing charges or being convicted, the region has seen its share of economic and political fallout from corruption. Latin Americans are showing increasing signs of discontent and demanding that their governments tackle corruption more aggressively.
In this first part of two blogs, we look at how corruption in Latin America compares to other regions and explain why it is so difficult to combat. Part of the answer lies in the fact that systemic corruption is so endemic to the fabric of society, that changes in behavior require a major shift in expectations. As corruption drains public resources and drags down economic growth in multiple ways, the IMF has committed to work together with our members to confront the problem.

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