Corruption and Economic Growth
Index of Economic Freedom done by Heritage Foundation (2013) indicated that rules of law has an importance to economic growth. One rule that reflected rules of law is freedom from corruption. We can see that Freedom from Corruption has positive relationship with GDP per capita. Developing countries need rules of law to found economic growth. In the past ten years, Thailand has economic freedom index higher than the average of the world (picture 1) but freedom from corruption is relatively low compared to world average (picture 2). Hence, corruption is the negative factor to Thai economy.
Index of Economic Freedom done by Heritage Foundation (2013) indicated that rules of law has an importance to economic growth. One rule that reflected rules of law is freedom from corruption. We can see that Freedom from Corruption has positive relationship with GDP per capita. Developing countries need rules of law to found economic growth. In the past ten years, Thailand has economic freedom index higher than the average of the world (picture 1) but freedom from corruption is relatively low compared to world average (picture 2). Hence, corruption is the negative factor to Thai economy.
Source: http://tdri.or.th/tdri-insight/corruption-problem-in-thailand/
There are several corruption cases which impact our economic significantly. Here are some of them
1) Rice Subsidy Scheme
Thailand Rice Pledging/Subsidy Scheme (2011 - During Prime Minister Yingluck Shinnawatra)
What it is?
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How it was corrupted?
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2) Conflict of Interest (PTT oil company case)
Conflict of Interest (PTT oil company) (2001 - During Prime Minister Taksin Shinnawatra)
Source: Corruption Menu Book by TDRI, 2014
What it is?
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How it was corrupted?
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3) Hopewell Highway Project
Hopewell Highway Project (1989) (During Prime Minister Chartchai Choonhawan)
What it is?
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Source: Corruption Menu Book by TDRI, 2014