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![]() Monday, July 25, 2005 Corruption and economic development do not mix. Last week, newspapers in Cleveland revealed a federal probe into the city's activities under the former mayor. The administration of former Mayor Mike White allegedly engaged in a widespread extortion scheme. Read more. After an effective turnaround starting in the early 1980's under Mayor Voinovich, the city began to stall in the 1990's under Mayor White. Now we can see why. Bureaucratic corruption undercuts economic growth. This issues has been explored in far more detail in international economic development. See, for example, a recent commentary on the impact of corruption on sub-Saharan Africa. Read more. Transparaency International represents one organization focused on addressing issues of corruption. Corruption is generally understood by civic leaders operating in a regional economy infected by these practices. People know what is going on. While the facts may not rise to the level of a newspaper report, suspicions about shady business practices circulate just below the surface. That is certainly true in Cleveland, where rumors concerning Mayor White's administration have been circulating for years. In my experience, corruption generally appears when the civic leadership of the business community is weak, apathetic or compromised. Unethical political leaders can then operate their schemes with little regard for the long term consequences. posted by Ed Morrison | |
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