- International Monetary Fund
- Published Date:
- July 2016
This 2015 estimate is an extrapolation by Daniel Kaufmann based on his work in Myths and Realities of Governance and Corruption (2005).
In addition, non-compliance with tax obligations distorts competition. See IMF. 2015a. Current Challenges in Revenue Mobilization. Washington, D.C.: IMF.
See also, for example, Tanzi, V. and Davoodi, H. 2002. “Corruption, Public Investment, and Growth.” In G. T. Abed and S. Gupta, eds., Governance, Corruption & Economic Performance. Washington DC: IMF, pp. 280–299. Military spending is, in addition, prone to corruption, because of secrecy and a lack of transparency (see Gupta, S., de Mello, L. and Sharan, R. 2002. “Corruption and Military Spending.” In G. T. Abed and S. Gupta, eds., Governance, Corruption & Economic Performance. Washington, D.C.: IMF, pp. 300–332).
While the analysis of the association between corruption and growth remains controversial, a meta-analysis of 52 cross-country studies found that a one-unit increase in the perceived corruption index is associated with a nearly 1 percentage-point decrease in the growth rate of per capita GDP (see Ugur, M. and Dasgupta, N. 2011. Evidence on the Economic Growth Impacts of Corruption in Low-Income Countries and Beyond: A Systematic Review. London: EPPI-Centre, Social Research Unit, Institute of Education, University of London).
Over the past decade, risk-rating agencies have realized that their previous models, driven by economic variables alone, were unsatisfactory and have incorporated governance and corruption factors, such as the Worldwide Governance Indicators.
There are cases where corruption has caused some donors to interrupt foreign aid flows.
For example, the Fiscal Transparency Evaluation conducted by the Fund in Mozambique (the first in Sub-Saharan Africa) identified a need for greater transparency in public procurement and state-owned enterprises (see IMF. 2015c. Republic of Mozambique – Fiscal Transparency Evaluation). In Tunisia, the Fund has supported the development of a more transparent budget law that would strengthen budget preparation and execution procedures and introduce performance-based budgeting.
Many countries are taking the positive step of automating public services, which not only allows for simplification and efficiency, but also eliminates the potential for abuse of discretion.
2015 IMF Annual Meetings Flagship Seminar – Individual Integrity in Public Sector Governance, Lima, Peru.
A good example is the “I paid a bribe” website in India (www.ipaidabribe.com). For other examples in Bhutan, Pakistan, and Kenya, see Strom, S. 2012. Websites shine light on petty bribery worldwide. New York Times. 6 March 2012. Available from: http://www.nytimes.com/2012/03/07/business/web-sites-shine-light-on-petty-bribery-worldwide.html?_r=0).
2002. “Corruption and the Provision of Health Care and Education Services,” In Governance, Corruption, and Economic Performance, eds. G.T.Abed and S.Gupta (ed) (Washington, D.C.: IMF): 245–79..,
IMF. 1997. “The Role of the Fund in Governance Issues—Guidance Note.” IMF News Brief No. 97/15.Washington, D.C.: International Monetary Fund.
IMF. 2004. “Legal, Judicial, and Governance Reforms in Indonesia.” Indonesia: Selected Issues, IMF Country Report No. 04/189. Washington, D.C.: International Monetary Fund.
IMF. 2006. Islamic Republic of Mauritania: 2006 Article IV Consultation—Staff Report, Washington, D.C.: International Monetary Fund.
IMF. 2015a. Current Challenges in Revenue Mobilization. Washington, D.C.: International Monetary Fund.
IMF. 2015b. Ukraine—Request for Extended Arrangement. IMF Country Report No. 15/69. Washington, D.C.: International Monetary Fund.
IMF. 2015c. Republic of Mozambique—Fiscal Transparency Evaluation.Country Report No. 15/32.Washington, D.C.: International Monetary Fund.
1998. “Corruption and the Composition of Government Expenditure.” Journal of Public Economics (69): 263–79.
OECD. 1997. “Convention on Combating Bribery of Foreign Public Officials in International Business Transactions” [online] Paris: OECD Publishing.
Born in Paris in 1956, Christine Lagarde completed high school in Le Havre and attended Holton-Arms School in Bethesda, Maryland (USA). She then graduated from law school at University Paris X and obtained a Master’s degree from the Political Science Institute in Aix en Provence.
After being admitted as a lawyer to the Paris bar, Lagarde joined the international law firm of Baker & McKenzie as an associate, specializing in labor, anti-trust, and mergers and acquisitions. A member of the Executive Committee of the firm in 1995, Lagarde became the Chairman of the Global Executive Committee of Baker & McKenzie in 1999, and subsequently Chairman of the Global Strategic Committee in 2004.
Lagarde joined the French government in June 2005 as Minister for Foreign Trade. After a brief stint as Minister for Agriculture and Fisheries, in June 2007 she became the first woman to hold the post of Finance and Economy Minister of a G7 country. From July to December 2008, she also chaired the ECOFIN Council, which brings together economics and finance ministers of the European Union.
As a member of the G20, Lagarde was involved in the group’s management of the financial crisis, helping to foster international policies related to financial supervision and regulation and to strengthen global economic governance. As Chairman of the G20 when France took over its presidency in 2011, she launched a wide-ranging work agenda on the reform of the international monetary system.
In July 2011, Lagarde became the eleventh Managing Director of the IMF and the first woman to hold that position.
Lagarde was named Officier in the Légion d’honneur in April 2012.
A former member of the French national team for synchronized swimming, Christine Lagarde is the mother of two sons.