Many of these aspects of good governance are discussed elsewhere in the chapter, particularly in the sections on human and institutional capacities and social infrastructure and participation. One of the most controversial elements of good governance, the absence of corruption, is discussed here. Although principles of good governance have been adopted in most democratic governments and corruption tends to be either limited to isolated incidents or to a few institutions, many developing countries have not adopted such principles or put them into practice. Until the 1980s the literature on corruption tended to take a relativist tone and was functionalist in approach. Since then there has been a tendency to take a more critical approach to corruption which includes embezzlement and bribery.
Corruption can be incidental, institutional or systemic.
Incidental corruption can be dealt with and controlled through existing legal mechanisms in most countries. However, institutional and systemic corruption is far more difficult to deal with. However, not all these payments deter economic growth. Such corruption can be seen not only in the developing countries but also in the developed countries. Since 1977, when the Foreign Corrupt Practices Act was adopted in the USA, the US is trying to end tax deductibility in relation to bribes to foreign nationals in order to persuade them to buy certain technologies.