Case study (7) Focus on CorruptionSyllabus: Explain the importance of good governance in the development process.
In countries where there is a more interventionist approach to growth and development, the role of government is crucial. Watch the video produced by Voice of America, which highlights the importance of good governance, controlling corruption and infrastructure if countries are to grow and develop.
- Explain what is meant by corruption.
- Is corruption more likely to happen in poor countries than in rich countries? Explain your answer.
- Is corruption more likely to happen in a country operating with an interventionist strategy rather than a market oriented strategies? Explain your answer.
- Examine the reasons why corruption impedes economic growth and development.
- One of the roles of good governance is to provide a stable macroeconomic environment in which businesses can operate efficiently. Comment on macroeconomic policies that governments can adopt to stabilise the economic environment.
- To what extent would such macroeconomic policies be considered market oriented or interventionist?