International Monetary Fund. External Relations Dept.
On September 1, 2001, Anne Krueger took up the reins as the IMF’s First Deputy Managing Director. She brought with her a wealth of experience from the public and private sectors, including long stints in academia—most recently as an economics professor at Stanford University—and, from 1982 to 1986, as the World Bank’s Vice President for Economics and Research. She is a Distinguished Fellow and past President ofthe American Economic Association.
This paper describes the issue of corruption around the world. The paper surveys and discusses issues related to the causes, consequences, and scope of corruption, and possible corrective actions. It emphasizes the costs of corruption in terms of economic growth. It also emphasizes that the fight against corruption may not be cheap and cannot be independent from the reform of the state. If certain reforms are not made, corruption is likely to continue to be a problem regardless of actions directly aimed at curtailing it.
In recent years, the appropriate level and structure of interest tates have come to be seen as major issues in connection with stabilization programs undertaken by members. These issues arise from consideration both on the demand side, as interest rates affect the magnitude of aggregate demand, and on the supply side, as they influence the volume and quality of investment and, thus, the growth of output.