ABSTRACT
This chapter considers the different definitions of corruption because it is important to know exactly how corruption is defined in social sciences. It reviews the existing measures of corruption and considers the consequences of corruption for economic development. There are two main methods used to measure corruption: objective measures quantify observed acts of corruption while subjective measures evaluate perceptions of corruption by those who are either confronted with it or with its consequences. Corruption is a long-term phenomenon that can have deep roots. Societies do not become corrupt or law abiding simply as a result of policy changes. A very well-known survey of corruption is the Corruption Perceptions Index, published each year since 1995 by Transparency International. According to the Transparency International index, countries with darker colors and lower Corruption Perceptions Indices (CPI) have a higher level of corruption. Researchers have tried to determine whether higher pay for civil servants was, in general, a good strategy for fighting corruption.
