corruption

Oil for (almost) nothing and gas for free

Natural resource giveaways to friends and family have long been a global concern, and there is an extensive literature documenting the problem.  This 1999 paper by the International Monetary Fund, for example, finds a link between the degree to which a nation or state is dependent on natural resources and the level of corruption.  This paper from 2009 divides the problems into corruption and patronage:

Corruption and fraud in agricultural and energy subsidies: identifying the key issues

Government subsidy programs, like many areas of government expenditure, are at risk of corruption and fraud that cost taxpayers millions of dollars. The extent to which these two factors affect subsidy policy is difficult to fully estimate because it is not commonly detected or reported to official sources. Precise figures are difficult to obtain, and governments are also often unwilling to publicize occurrences of fraud and corruption out of fear of bad publicity or public concern at their lack of oversight.

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