Annual cost of bribery equals 2 percent of global GDP, says IMF chief

NEW DELHI: The annual cost of bribery, which is just one subset of corruption, is estimated to be between $1.5 trillion and $2 trillion — roughly two per cent of global gross domestic product. These costs represent only the tip of the iceberg and the long-term impacts go much deeper, says Christine Lagarde, managing director, International Monetary Fund. 

Speaking at a Brookings Institution event in Washington on Monday, she pointed out that there is a growing consensus among members that corruption is a macro-critical issue in many countries. Hence, this has to be taken head on. “We also are committed to looking at transnational private actors who influence public officials,” she said. 

Since private actors may help generate corruption through direct means such as bribery, they also can facilitate corruption through indirect means such as money laundering and tax evasion. 

“The recent example of the ‘Panama Papers’ highlights the importance of these facilitators, and underscores

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