Can corruption and economic crime be controlled in developing economies, and if so, is the cost worth it?

Abstract

Purpose

The purpose of this paper is to examine corruption as the most ancient and common type of economic crime, and its significance in a developing country's progress. The paper seeks to elaborate on why underdeveloped countries are more prone to corrupt acts and more open to investments by criminals. The paper attempts to answer the question whether such criminal activites can be controlled by developing societies and states in transition.

Design/methodology/approach

Research is based on relevant literature and empirical findings, approaching the issue from more than one theoretical point of view. The paper analyses the two faces of corruption when dealing with specific countries and inefficient governments. It discusses how corruption in the long term is damanging for the development of less‐developed states.

Findings

Corruption is not a localized crime but rather a crime without borders. Domestically it can only be controlled through state mechanisms and with the support of society and the media. Internationally it can be controlled with international cooperation and enforcement of bilateral regulations. This research concludes with the importance of global action in fighting economic crimes with destinations in developing countries.

Originality/value

This paper advances the academic debate on economic crimes and countries in transition in particular, while in general presents a more realistic approach to citizens, civil society, the independent media, and state officials themselves, who can have a crucial role in controlling corruption, hence economic crimes.

Citation

Budima, G. (2006), "Can corruption and economic crime be controlled in developing economies, and if so, is the cost worth it?", Journal of Financial Crime, Vol. 13 No. 4, pp. 408-419. https://doi.org/10.1108/13590790610707546