Corruption and Economic Growth

(Part 2)


Factors to Include


What other factors does Sen think should be included in an assessment of development? Answer this question.

Sen contends (Hill, 2011) the assessment of development should include more measurements of capabilities and opportunities (pg. 65). Sen indicates development is a process of expanding freedoms and barriers to freedom have to be eliminated (pg. 65). Sen suggests a `political freedom’ measurement should be included in the Human Development Index (HDI) (pg.65).


Adoption of Sen’s Views


How might the adoption of Sen’s views influence government policy? Answer this question.
Adapting Sen’s views may influence governments to change policy in many ways. Freedom is a right we have and enjoy very much in the United States. In order to have freedom, governments must have laws to support freedom, additionally; governments must embrace freedom in order to allow growth.

U.S. Department of State: Investment Climate Statements
The DoS (Doing business in Russia: Market overview) contends , `Conducting business in Russia [sic] may be impeded by protection and enforcement, extensive corruption and inadequate rule of law, inconsistent application of laws and regulations; lack of transparency, large state-owned or controlled enterprises (2012). The DoS (Doing business in the Czech Republic: Market overview) indicates recent laws make corruption illegal and the risk of political violence in the Czech Republic is extremely low (2012).




Forbes determined `The Best Countries for Business by grading 141 nations on 11 different factors: property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection, [sic] and stock market performance’ (Best Countries for business) ranks the Czech Republic 41 and Russia 105. The ranking is from one to 100 the lower the ranking the higher the recommendation.


Doing Business


Doing business ranks (as cited in World Bank Group) business on the `ease to conduct business in’ (2011). The rankings range from one to 183 with a ranking of 183 being the worse conditions possible to conduct business. Doing business ranks the Czech Republic with a 65 and Russia rank is 112.


Transparency International


Transparency International provides the Corruption Perception Index (PCI). According Transparency International (Corruption perceptions index 2012) this index scores the perception of corruption in the public sector of countries and territories (2102). A country or territory’s score indicates the perceived level of public sector corruption on a scale of 0 – 100, where 0 means that a country is perceived as highly corrupt and 100 means it is perceived as very clean (2012). The ranking of the Czech Republic, 49, indicates the perception of corruption is far less than that of Russia with a ranking of 23.




Corruption is in every country and comes in many forms. As a responsible manager and above all a Christian, understanding and dealing with corruption is required. Even though the Czech Republic scored better than Russia in the PCI, the development of a risk mitigation plan is required along with training of managers and employees in order to reduce this risk and allow the investment to provide earnings.




Best Countries for business (2012). In Forbes. Retrieved February 25, 2013, from

Corruption perceptions index 2012. (2012). In Transparency International. Retrieved February 25, 2013, from
Cunningham, B. (2009, November 25). Czech Republic ranks among Europe’s most corrupt. The Prague Post [online edition]. Retrieved February 25, 2013, from

economic. 2011. In Retrieved May 8, 2011, from

Doing business in the Czech Republic: Market overview. (2012). In Retrieved February 25, 2013, from
Doing business in Russia: Market overview. (2012). In Retrieved February 25, 2013, from

Fey, C. F., & Shekshnia, S. (2008, January). The key commandments for doing business in Russia . In INSEAD: The business school for the world. Retrieved February 24, 2013, from
Hill, C. W. L. (2011). Global business today (7th ed., pp. 65-75). New York, NY: McGraw-Hill/Irwin.

Mo, P. H. (2001, March). Corruption and economic growth. Journal of Comparative Economics, 29(1), 66-79. doi:10.1006/jcec.2000.1703
World Bank Group, . (2011). Doing business 2011: Making a difference for entrepreneurs [pdf]. Doing business, 1-22. doi:10.1596/978-0-8213-7960-8