This paper sets out a framework within which the problem of corruption may be analysed in any specific country. It does not seek to establish the importance of such activity in a general sense, or seek to propose particular economic policy or institutional programmes that should be pursued in order to reduce the impact on the development process. Rather, the objective is to provide a structure for two distinct areas of analysis. Firstly, it considers the investigation of the determinants of corruption, emphasising the environment in which corruption evolves — whether shaped by international, national or specific institutional factors — and the manner in which the different parties to corruption interact and organise themselves in conducting these activities.

Secondly, the paper focuses on the importance of corruption for economic development by considering the different forms of corruption and the characteristics of these forms that are most critical for economic activity ...