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Chapter 22: 22-9DQ (page 456)

Why do you think there is so much government corruption in some developing countries ?

Short Answer

Expert verified

Corruption in some developing countries is more due toweak institutions, poor law and order, illiteracy, etc.

Step by step solution

01

Weak Institutions

The institutions in the DVCs countries are not that strong due to poor policies, lack of discipline, poor administration, and mismanagement of such institutional corruption.

02

Poor law and order

Law and order in the DVCs are very poor, due to which there are lack of responsibility and discipline, causing corruption.People bribe the officers in these countries. Those who bribe the officers will utilize the poverty of the nation, and this increases corruption. Lack of strict law and order also helps them.

03

Illiteracy

Due to high rates of illiteracy, people of DVCs are not aware of their rights, and therefore, it becomes easy for the officials to exploit them.The illiteracy of these people makes them unaware of the rights which they have. They blindly believe what the officers say and will pay the amount which they say.

Illiteracy also leads to lower social development and increased unemployment in society. To make a livelihood, they follow several methods and all end up in corruption

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Most popular questions from this chapter

Question. A DVC’s population is growing 2 percent per year and output is growing 3 percent per year. If the government wants to improve living standards over coming decades, which of the following would probably be the best savings rate for the economy?

a. 2 percent.

b. 0 percent.

c. 10 percent.

d. 5 percent.

Suppose a country’s total output is growing 10 percent per year, but its population is growing 11 percent per year. What will happen to living standards?

  1. Remain the same
  2. Fall
  3. Rise

As it relates to the vicious circle of poverty, what is meant by the saying, “Some DVCs stay poor because they are poor”? Change the box labels as necessary in Figure 22.3 to explain rapid economic growth in countries such as South Korea and Chile. What factors other than those contained in the figure might contribute to that growth?

True or False. Some economists argue that the single best thing that IACs could do for DVCs in terms of economic growth is to eliminate trade barriers between IACs and DVCs.

Do you favor debt forgiveness to all DVCs typically, just the process ones, or none at all? What incentives problem might debt relief create? Would you be willing to pay \(20 a year more in personal income taxes for debt forgiveness? How about \)200? How about $2000?

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