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IMF: 2% of global GDP goes to bribes

IMF Chief Christine Lagarde addresses Brookings Institute in Washington

It is estimated that bribes and graft correspond between 1.5% to 2% of global GDP, according to IMF head Christine Lagarde. The IMF Managing Director said that systemic corruption was jeopardising the ability of states to create growth and lift populations out of poverty during a speech at the Brookings Institute in Washington. “Thanks to the work of some in this room, it has become clear that systemic corruption undermines the ability of states to deliver inclusive growth and lift people out of poverty. It is a corrosive force that eviscerates the vitality of business and stunts a country’s economic potential., she said. Mrs. lagarde went on to outline ways in which te Fund was approaching the problem. “The Board agreed that our members would benefit from an increase in granular policy advice, and a candid, even-handed assessment of the economic impact of corruption.
To achieve this goal, new methodologies are needed to better quantify and analyze the problem. That is why I am pleased that today’s event marks the launch of two new anti-corruption research initiatives led by Brookings, the World Bank, the IFC, and their partners.” “On the legal front, it is often the institutions charged with enforcement — the police, the public prosecutors, and the judiciary — where the rot of corruption sets in.”, she stressed.