Conventional wisdom suggests a negative relationship exists between corruption and economic activity. However, some studies* have shown that fraud could serve as a fount of innovation harnessed to more positive outcomes. Even if at the firm-level bribes sometimes present a more efficient alternative to introduce innovative products to markets, economy-wide data prove that a reduction of corruption and administrative barriers is crucial to enable the advantages of a competitive business environment and to unlock the innovative potential of entrepreneurship for more rapid and sustainable economic growth.
For a given level of corruption, one can predict fairly accurately the strength of a country's innovation climate because of the demonstrated relationship between corruption and entrepreneurial and innovative activity. No country with high levels of corruption has simultaneously achieved a score of more than 50 on the Entrepreneurship and Innovation indices scales (from 0 to 100). Individual deviations from the global trend, such as China or Russia which are ranked among the top 50 countries worldwide on the Global Innovation Index, are exceptions that only prove the rule. The development of innovation conditions in these countries has been very slow in part because government intervention that selects industry winners and corruptly awards contracts also reduces the incentive to innovate.
In the developed world, Italy and Greece exemplify how high rates of corruption slow economic activity. Both countries have among the highest corruption rates in Europe and belong to a cluster of inferior EU member states based on entrepreneurial conditions and innovative capabilities.**
The UN Convention against Corruption's implementation is powered by a Review Mechanism that has enabled the training of anti-corruption experts and helped countries revise their legislation. In 2017, the Seventh Session of the Conference of States Parties to the UN Convention against Corruption will be held in Vienna, Austria. Date of Event: 6-10 November 2017 Event Holder: United Nations Source of data: Corruption Perception Index, Worldwide Governance Indicators
With inclusiveness, implementation and investment at the centre of Turkey’s G20 Presidency, the fight against corruption is instrumental to ensure all businesses, from SMEs to big MNEs, play their part in contributing to growth and investment, and can operate with clean hands in a safe environment. Jointly organised by the Turkish Presidency of the G20 and the OECD, this conference builds on the conclusions of the G20 and B20 discussions, implementing the G20 priority for closer co-operation between governments and the private sector. The Event Holder: Organisation for Economic Co-operation and Development
Source: TRACE Matrix - Global Business Bribery Risk IndexEconomyCrimeDemographicsGDP, current prices USDHomicide RateTotal Population ForecastGDP, PPP current intern. $HomicidesPopulation Growth Rate ForecastGDP per capita, current prices USDPercentage of homicides by firearmPopulation Density ForecastGDP per capita, PPP current intern. $Number of homicides by firearmMedian Age of the Population ForecastForeign Direct InvestmentHomicide by firearm rate Total populationTotal External Debt, USDAssault, ratePopulation Growth RateShare of AgricultureKidnapping, ratePopulation DensityShare of ManufacturingRobbery, rateMedian Age of...