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INCAE study describes strong correlation between the level of transparency of a nation and its economic prosperity

05 2019 March
Susan Fernandez

An exclusive study developed by INCAE Business School and disseminated by CNN en Español, entitled Corruption in Latin America and its potential solutions, summarizes the magnitude of corruption practices and details their impact on the lack of transparency in the effectiveness of the State, the management public funds, private investment and social progress; clearly showing how this phenomenon continues to plague the Central American isthmus. The content of this study will premiere today at 2:00 pm (Miami time) on Portafolio Global, and will be available at CNN.com/español.

The study indicates that between 2012 and 2017, 13 of the 21 nations in the region worsened their score on the corruption index. "Corruption creates poverty," explained Niels Ketelhöhn, one of the study's authors. "No corrupt country is rich, and no rich country is corrupt." The economic cost of corruption is estimated to be close to 5% of world GDP, which in Latin America would be equivalent to US $ 278,000 million. According to the study, corruption decreases the effectiveness of the state, skews public investment, reduces the efficiency of public services, and increases transaction costs. In addition, it drives away private investment (national and foreign) and distorts the efforts of entrepreneurial talent.

The study authors point out that the solution to the problem must be multidimensional. “At the individual level, we must promote values ​​and norms of conduct from the initial educational levels. At the level of companies and organizations, anti-corruption programs should be established that include clear policies, control mechanisms, correct incentives, and an environment that promotes the reporting of corruption. And, finally, at the institutional level, adequate legal frameworks with effective implementation mechanisms must be defined, ”says Octavio Martínez, Director of the Latin American Center for Competitiveness and Sustainable Development (CLACDS) and co-author of the study.  

For her part, Susan Clancy, a member of the INCAE faculty and also the author of the study, explained that "last year, INCAE became the first MBA to have a required course on anti-corruption programs, best practices in the private and public sectors." . Professor Clancy currently teaches the business ethics class to students in INCAE's master's programs.

The findings of the exclusive study entitled "Corruption in Latin America and its potential solutions", starting this Wednesday at 2:00 pm (Miami time) only on CNN in Spanish.

About INCAE Business School

INCAE was named the # 11 business school in the Americas, according to the Financial Times, and is a recognized think tank in the region, which actively seeks to promote the integral development of the countries of the region, training leaders in key sectors. improving their practices, attitudes and values, through research and promoting dialogue on key issues in the region.

Ethics and Transparency Initiative of INCAE Business School

Last year, INCAE Business School became the first MBA to have a required course on anti-corruption programs, best practices in the private and public sector. For this initiative the school partnered with the Seattle International Foundation to develop teaching materials on cases in Latin America. Finally, in October 2018, the Ethics and Transparency Conference was held, in which leaders from the private and public sectors participated. During the event, understanding and dialogue on ways to combat corruption were promoted.

About CNN in Spanish

The CNN en Español news network is responsible for several multimedia platforms targeting Spanish-speaking audiences around the world, reaching almost 50 million households including CNN en Español 24 hours of cable news for the United States, Mexico and America. Latin. This together with CNNEspanol.com, CNN en Español Radio, CNN en Español on Twitter, Facebook and Instagram. The CNN en Español brand provides a multi-platform experience to Spanish-speakers in the Americas.

CNN contacts in Spanish:

Mariana Piñango, Latin America - mariana.pinango@turner.com

Isabel Bucaram, USA - isabel.bucaram@turner.com

Javier Merino, Mexico - javier.merino@turner.com   

INCAE Business School Contacts:

Susan Fernández, Costa Rica - susan.fernandez@incae.edu

Karola Fonseca, Nicaragua - karola.fonseca@incae.edu