Information and Incentives

Anti-corruption efforts: What's working?

The issue

Developing countries are, in large part, stuck “developing” due to weak government institutions. Much of this is motivated by corruption. Corruption impedes growth and development through inefficiency, misallocation, and lowered quality of services. Historically, increased accountability has proven effective in reducing corruption. Such interventions have decreased missing expenditures in Indonesian public works projects, reduced the likelihood of corrupt Brazilian incumbents’ reelection, and even improved the efficiency of Ugandan public healthcare. More recent literature on corruption, however, focuses on incentives.