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Comparative Economic Systems Assignment

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Answer each question and bring your printed or hand-written answers to class on Friday, Jan. Comparative Economic Systems Assignment
31.
1.
a. Write a working definition of corruption. What is it? What is included?
b. Discuss the various ways in which the level of corruption has been measured or
estimated.

2. Milanovic lists 3 reasons why he things that worldwide corruption is intensifying. The
first is “hypercommercialized and globalized capitalism, where life success is measured
only by financial success.” (Milanovic, p. 163)
a. Expand on this argument, summarizing his comments about the financial crisis of
2007-09
b. Expand on this argument, summarizing why corruption has intensified in Comparative Economic Systems Assignment
formerly communist countries that are now reforming to capitalist economies
3. The second reason why Milanovic believes that corruption is on the increase globally is
that there is an “enabling framework” or scaffolding that makes it easier to move, hide,
and launder stolen money or evade taxes.
a. Well known and respected multinational banks and well respected financial
centers of Switzerland, Luxembourg, London, New York, and the Cayman Islands
cia are implicated. Expand on this argument, providing examples that Milanovic
presents.
b. What is “moral” money laundering?
c. Take a look at this NY Times 2019 article: Comparative Economic Systems Assignment

4. The third factor is the “demonstration effect” where entrepreneurs or bureaucrats in
developing countries feel entitled to be corrupt and pile away money in tax havens.
a. Look at “Visualizing Corruption Around the World”:

Visualizing Corruption Around the World

b. Prepare some comments to explain what you learned from looking at the data
presented. How does it complement what Milanovic calls the “middle-
income/poor demonstration effect”?
5. What can be done about corruption? Comparative Economic Systems Assignment

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