The world is constantly reminded that corruption knows no geographic boundaries. In South Africa, former President Jacob Zuma is embroiled in an inquiry into whether he ran a patronage system that drained money from the country’s treasury. A money laundering investigation launched in Brazil in 2008 expanded to take down a vast network of politicians and business leaders across Central and South America. And U.S. President Donald Trump’s administration has been plagued by officials who have used their offices for private gain and been forced to resign.
The impact of actual corruption is devastating, whether it siphons money from public use or drives policy that is not in the public interest. The effects can be particularly pernicious in developing countries, where budgets are tight and needs are vast. The United Nations estimates that corruption costs $2.6 trillion in losses every year.
A street cleaner walks past a poster promoting Peruvian President Martin Vizcarra and his proposed reforms aimed at tackling corruption, in Lima, Peru, June 4, 2019 (AP photo by Martin Mejia).
But even the perception of corruption is dangerous, undermining people’s faith in government institutions, a phenomenon that is helping to drive a crisis of democracy worldwide. In Transparency International’s latest Corruption Perceptions Index, most governments are seen as corrupt by their own citizens. The rise of populist governments in particular poses challenges. By their nature, populists tend to define themselves against a corrupt elite, which then allows them to weaken institutions and divert attention from their own use of the levers of power to enrich themselves.
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