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© 2012 Pearson Education, Inc. Publishing as Prentice Hall

Corruption

Many people have argued that one barrier to economic development in a number of countries is the level of corruption and inefficiency in the government.

One reason corruption is bad for an economy is that it often leads to the wrong firms, the less efficient firms, producing the goods and services in the society.

The chart shows the World Bank’s rating of corruption levels in a number of countries around the world.

The countries are ranked from those with the strongest controls on corruption—Germany and France—to those with the lowest controls—Pakistan and Nigeria.

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