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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.
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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