The Role of Legal Corruption in Hindering Economic Growth

45571-atlasofeconomiccomplexity2

The Role of Legal Corruption in Hindering Economic Growth

When we have a system where the extractors have the final say, where there is no check for the sake of public good and you have wealth leaving the country enmasse to simply produce more wealth for the compan(ies) and the compan(ies) only, then, you get dysfunction in the economic system and increased chances for poverty in the social system.  The work that people do to produce the wealth isn’t rewarded, and you get less innovation and less development as a result of stagnant or declining wages and excessively large profits in the companies.

It’s probably only part of the story.  There’s also dysfunctional or non-existent government and public influence and unsettled ethnic/religious conflicts that prevent wealth from being realized.

But the wealth that is currently being produced in the Third World probably isn’t being invested or used to build up the societies in which the companies work, other than to make the companies more profitable.  Even that is handled by the public funds (as in Kenya, or China) and not by the private companies themselves.  That’s how societies aren’t becoming rich or becoming rich as quickly or ably as they could be.

All because a small handful of people just have to have more than they can actually use in a lifetime, even by spending lavishly and irresponsibly.

Think about it.

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