Seminar paper from the year 2010 in the subject Business economics
- Miscellaneous, grade: 1,0, Berlin School of Economics (Global
Governance), language: English, abstract: During the last decades,
corruption became an important topic. About twenty years ago the
issue started to gain increasing attention. Different Organization
engage in the fight against corruption. This is a remarkable change
compared to the situation before the 1990s. Back then, most people
did not see it as a pressing problem. Actually, it was more seen as
an integral part of doing business. Most European countries allowed
for tax deductibility of bribes. Even the World Bank, not
constricted by such national concerns, was avoiding the topic. The
changed perception of corruption has manifold reasons. Foremost,
the geopolitical situation changed remarkably. During the cold war,
governments, despite their corruptness, were supported to make sure
they were not joining the communist bloc. After the end of this
ideological competition, the imperative to tolerate and not to
address issues like corruption and abuse of political power ceased
to exist. Last, but not less important, the USA, not constraint by
geopolitical considerations, had economic interest to put the topic
on the agenda. While for US-companies bribing abroad was forbidden,
most other developed countries used graft to initiate business
abroad. Therefore, the US had a special interest to push for
anti-corruption laws to level the playing field for its companies.
From a western normative and moral point of view this fight against
corruption on the international level seems to be a desirable
development. However, if those were the only reasons for this
crusade, it could be misperceived as another example of the
imposition of rules from the Global North on the Global South. Then
again, if corruption has negative impacts, other than moral
concerns, it would legitimize this movement. Prevailing corruption
might influence the development and e
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