Corruption in Moldova: macroeconomic impact
CORRUPTION IN MOLDOVA: MACROECONOMIC IMPACT   
coruptia_cusnir.jpg1. Corruption in transition countries: its genesis, causes, main forms    
Corruption  = Monopoly + Discretion – Accounting  

By the beginning of ’90s one of the biggest problems for the transition countries was shadow economy, and the main objective of the state policy in this domain was supposed to be the creation of conditions for the incorporation of shadow economy into the formal one. During the last years the problem modified into a national tragedy for a series of countries – corruption.

Corruption in many cases undertook the mechanisms, structures, and functions of the state.   If at the beginning of the decade corruption in transition countries served in a big part as a brake to the economic development, creating obstacles for local producers and pushing out the potential foreign investors, then, actually it simply blocks the reforms in the country.

Any attempt to improve the acting legislation does not have any positive expected effects due to the impact of corruption; the economy does not develop according to market rules, there are no competition and progress in utilizing the disposable resources, state debts grow spontaneously, pauperization of the society deepens, a decrease of population’s credibility in the state and a creation of a conflict situation take place.

click the link below to download the full document
Corruption in Moldova: macroeconomic impact