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Corruption and Poverty - United States Agency for ...

Corruption and Poverty : A Review of Recent Literature Final Report Eric Chetwynd Frances Chetwynd Bertram Spector January 2003 Management Systems International 600 Water Street, SW Washington, DC 20024 USA 1 Table of Contents Executive 1 Defining Poverty and 2 Examining the Relationship Between Corruption and Economic Governance 3 2 List of Acronyms USAID US Agency for International Development GDP Gross Domestic Product PPP Purchasing Power Parity IMF International Monetary Fund BEEPS Business Environment and Enterprise Performance Survey ECA Europe and Central Asia TI Transparency International CPI Corruption Perceptions Index OECD Organization for Economic Cooperation and Development FSU Former Soviet Union LAC Latin American and the Caribbean 3 Executive Summary A substantial number of recent studies have examined the relationship between Poverty and Corruption to clarify the ways in which these phenomena interact.

poverty: an economic model and a governance model. The Economic Model postulates that corruption affects poverty by first impacting economic growth factors, which, in turn, impact poverty levels. Economic theory and empirical evidence both demonstrate that there is a direct causal link between corruption and economic growth.

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