Monday, November 30, 2015

Adam Hano, Chapter 13, Question 1

Charles Wheelan in chapter 13 explains what polices or factors are common in wealthier nations. An idea that stayed in my mind was the one about corruption. Charles explains that effective government is very important for Economies to grow. He argues that when there is a huge corruption in a country that makes government less efficient then there are many bad results such as: Discouragement of foreign investment, misallocation of resources and decrease in innovation.

I have never thought of corruption in that way. In our country corruption is lots of times seen differently. You meet with corruption almost every day. From trying to bribe a bus ticket inspector, to bribing police officers when they give you a ticket or when you simply want to pass a driving test (people usually give 30 Euros bribes). In many undeveloped countries it is even much worse, but the worst thing is that people perceive corruption as a way to move forward. You are simply more skillful if you can bribe an official. 

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