What effect does bribery and corruption have on business transactions?
Bribery and corruption can have a very detrimental effect on an economy and the World Bank has estimated that 0.5% of GDP is lost through corruption each year. Engaging in corrupt practices also creates a very unfavourable business environment by encouraging unfair advantage and anti-competitive practices. As well as allowing organised crime to flourish, corruption is one of the primary obstacles to the economic development of a country; it undermines the rule of law, weakens trust in public institutions and challenges democratic principles.