Corruption In The Baltic State Region

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Frank Wadsworth
Brenda Swartz
Jerry Wheat

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Abstract

The corruption studied here includes illegal, immoral, or dishonest acts that undermine economic and government activities.  This gray area of economic activity is often referred to as the “underground economy,” and the number of individuals and the amounts of money involved can only be ascertained by educated guesses.  Corruption is used to mean a state of progressive putrefaction; on a large scale corruption curtails a country’s ability to grow efficiently and effectively.  The European Bank for Reconstruction and Development (EBRD) and the World Bank have developed a methodology to study transition economies.  Through one-on-one interviews the Business Environment and Enterprise Performance Survey (BEEPS II 2002) gathered information from business owners and managers on a variety of topics in 23 transition economies.  This paper uses the BEEPS data to examine the perceptions of corruption in Estonia, Latvia, Lithuania, and Poland.

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