Thursday, March 19, 2009
Corruption and Underdevelopment
Corruption is a major contributor to underdevelopment and the cycle of poverty that plagues a host of developing countries. The Economist recently ran an article featuring the subject of aid, political graft and how large amounts of money get funneled by into western banks. Rather than putting all the blame on corrupt officials, the author says much of the blame should be placed on banks that enable and even court corrupt leaders. Paul Collier, author of The Bottom Billion, calls such banks “pimps” because they profit from the large sums of money that enter their institutions. America’s Riggs Bank – ironically had honest Abe Lincoln as a former customer – was mentioned for stashing away millions for former Chilean dictator Augusto Pinochet.
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