A handcuff hanging from a bar in a prison cell.

Attracting foreign investment to Southeast Europe requires reform.

The Cost of Corruption

January 2012, Number 03.01

“Corruption is one of the main diseases that have plagued Southeast Europe in the last 20 years. This phenomenon is perceived as an impediment to the development of these countries by: weakening the legitimacy and effectiveness of institutions, undermining economic growth, jeopardizing foreign direct investment (FDI), threatening democracy and [undermining the well-being of the population.

Research on the political and international economy has yielded important insights on the relationships between corruption, the quality of institutions, FDI and economic growth. Still, there are few systematic and comprehensive studies of corruption trends and consequences. For this purpose, an analytic study was conducted using recent econometric methodologiesin Southeast Europe4 to research and understand the relationship between FDI and the quality of institutions, since this issue has recently become a major item for the security of the region.

Corruption and organized crime have also been identified by the European Union as major problems in Southeast Europe and have been considered main obstacles to the very-much-aspired-to integration of these countries into the EU...”

Excerpt from Valbona Zeneli, “The Cost of Corruption,” per Concordiam: Journal of European Security Defense Issues  3, No. 1, 2012: 14-19.

This article reflects the views of the author and are not necessarily the official policy of the United States, Germany, or any other governments.