How much does corruption cost Ukraine?

Corruption is one of the main problems in Ukraine, which is always in the focus of both local and international observers. Civic activists and investigative reporters have talked repeatedly about how corruption destroys trust and the value system in society.

Apart from the moral aspect, corruption has significant economic consequences. The purpose of our research, based on a review of existing global studies, is to show how much corruption hinders economic development and reduces the welfare of citizens.

We demonstrate the effects of corruption in quantitative terms, focusing on those “channels” through which it inhibits the growth of economic and social well-being, namely:

  • public investment and expenditure;
  • private (inter alia foreign) investment;
  • the quality of governance;
  • human capital (quality of education and healthcare, poverty, resource allocation, efficiency).

Our study provides a strong argument to activists fighting against corruption that it is not just a moral issue but also generates massive quantifiable costs to society.