Corruption is one of the main problems in Ukraine that is constantly gaining national and international attention
The country’s fight against corruption is rather inefficient and slow. From 2013 onwards however, the position of Ukraine in the Transparency International’s Corruption Perceptions Index slightly improved, having climbed 14 places in the ranking. The country now ranks 130th, sharing the position with countries such as Nicaragua and Cameroon.
The Center for Economic Strategy decided to research how corruption affects Ukraine.
The conclusions were:
● Corruption slows down the economic growth rate of the country, making citizens poorer, and the economy less productive. It also hinders entrepreneurship.
● State expenditures are inefficient in corrupt countries, particularly less is spent on education and healthcare, but more on military projects that in turn slows down overall GDP growth.
● State budgets and revenues suffer as a result of tax evasion. In Ukraine, 62% of enterprises avoid paying taxes, with half choosing to pay bribes instead..
● Corrupt countries engage in less private investments due to higher risks and higher costs of capital.
● The quality of state administration suffers from corruption as officials seek the opportunities to enrich themselves instead of carrying out duties of their office.
● Corruption hinders the development of state institutions , as it is in the interest of corrupt authorities to keep the status quo.