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CAF: 2% of world production is lost in corruption acts

14:00 | Lima, Nov. 21.

The Development Bank of Latin America (CAF) on Thursday affirmed that —according to estimates by the International Monetary Fund (IMF)— 2% of the world's Gross Domestic Product (GDP) is lost in acts of corruption, mainly in bribes.

"The IMF says that approximately 2% of GDP is lost in bribes worldwide, and a similar figure is registered in Latin America," CAF Chief Economist Gustavo Fajardo expressed.

The officer argued the main concern is that corruption has a bad impact on the collective well-being of society, through different forms.

"On the one hand, there is a decrease in the capacity of States to provide quality goods and services to citizens. Growth and productivity are also affected," Fajardo said.

"And perhaps the most worrying thing is that there can also be a harmful effect on the trust in institutions and even in the democratic system," he added.

Fajardo emphasized that —according to various surveys— citizens consider corruption as the main problem of society and the economy.

"Corruption manifests itself in many ways, that is, public policy decisions can be biased in favor of particular interests," he indicated.

The CAF officer presented today the Economy and Development Report (RED) 2019 titled "Integrity in public policies. Keys to prevent corruption."

The CAF study seeks to contribute to the current agenda of reforms in favor of integrity in public policies, covering a broad spectrum of fields of action, including the functioning and deterrent capacity of State control and oversight bodies.

(END) CNA/JJN/MVB

Published: 11/21/2019

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CAF: 2% of world production is lost in corruption acts

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