In one World Bank survey, more than 150 high-ranking public officials and top citizens from over 60 developing nations ranked corruption as the biggest impediment to economic development and growth in their countries.
Corrupt practices drain government coffers, play havoc with free trade and scare away investors.
The World Bank estimates that corruption can reduce a country's growth rate by 0.5 to 1.0 percentage points per year. IMF research has shown that investment in corrupt countries is almost 5 per cent less than in countries that are relatively corruption-free. Standard and Poor's, the bond rating agency, gives investors a 50 to 100 per cent chance of losing their entire investments within five years in countries with various degrees of corruption. Such odds make long-term investment C which is of most benefit to a country C risky and unlikely. Obviously, it is wiser to invest in countries with more transparency, independent and well-regulated banks and strong court systems.