The economic and social consequences of corruption: The South American case.

When we think about corruption, we tend to see it as just an issue of morality and compliance with the law, about a politician taking advantage of his position in the structures of government to get more personal wealth, stealing from the people they are meant to serve and represent and, in the case of democratic countries, got them to power through the popular vote in the first place. But corruption isn´t just about the law or politics, it also affects our daily lives in a negative way. Corruption also harms the economy and stunts, growth and development in various different aspects. 

Primarily, corruption takes away resources meant for the betterment of society and the commonwealth of a country, and pours them into the pockets of the corrupt politicians. Funds that should be used to satisfy people’s necessities don´t reach their final destination. In countries that face major issues of poverty and inequality, government intervention through systems like healthcare and education, and projects like public works initiatives, is meant to help the citizens have a higher quality of life, but because the government funding doesn´t go to what it should actually go, those economic inequalities and needs will go unattended, perpetuating those issues instead of fixing them. 

But, this isn´t the only negative impact or consequence of corruption in the economy. Corruption also leads to a lack of private investment. Companies, and in particular foreign ones, usually don´t want to invest in countries plagued with corruption, since the only way to access the market is through bribery to government officials. Corruption also involves companies that in the name of profit and gaining more control over a part of the market, will pay money to politicians to by-pass regulations and get government contracts, cementing their already strong presence and reducing the window for competition from other companies. 

For countries already plagued with inequality and economic instability, like the countries of South America (for example Argentina, Bolivia, Brasil, among others.), corruption only worsens said economic situations. Sadly, the region’s politicians, across political party and ideological  lines, are well known for their corruption, with countries like Argentina, Brazil, Bolivia, Colombia with Corruption Perception Index numbers below the global average  (using the CPI, we measure the public perception of corruption in every country). With famous cases like Odebrecht, the region’s corruption problem has been evident for quite some time. 

If the region wants to achieve real economic growth and development, and give people access to the resources they need, we must take an active stance and combat corruption. Only with transparent governments will the countries of South America get the chance to develop their economies, bringing private investments and allowing public spending to reach where it should actually be going to, citizen’s welfare and development.