Chapter 8

Building Integrity Among Organizations in Southeast Asia

Roberto Martin N. Galang

Manuel J. De Vera

Introduction

There remains little doubt that corruption plays a negative role in the economic and social development process. There is an expanding academic literature on the destructive impact of government corruption on economic outcomes,1 detailing how its prevalence lowers foreign investments,2 increases risks and uncertainty,3 and promotes greater oligarchic control4 among others. The debilitating impact of corruption on economic performance is not only due to the additional costs involved in the payments demanded by crooked government officials, but also through its inherent unpredictability that penalizes firms to a much larger ...

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