Governance and Corruption

The concept of governance denotes the use of political authority and exercise of control in a society in relation to the management of its resources for social and economic development. This broad definition encompasses the role of public authorities in establishing the environment in which economic operators function and in determining the distribution of benefits, as well as the nature of relationship between the ruler and the ruled. Theoretically, corruption reduces economic growth through two main channels. First, corruption decreases the efficiency on which an economy depends because it often leads to choices that are not optimal: for example, students getting jobs by getting the marks altered or with fake marks cards/certificates, workers being paid bribes just to perform routine tasks, non-credit-worthy firms securing loans by bribing the bank officials etc. this paper gives a brioader spectrum of relationship between governance and corruption