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IMF Seminar on the Effects of Corruption on Youth - Brendan Cody, Intern, George Washington University

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This year’s annual meeting of the International Monetary Fund and the World Bank has a special focus on inequality. In keeping with this theme, the IMF held a seminar discussing the effects of corruption on youth and the direct correlation between the level of corruption and income inequality. Corruption perpetuates income inequality in several ways. First, systematic corruption erodes public trust in the government and leads to extreme lack of tax compliance. Since most education funding comes from government, corruption limits the amount of money spent on education and the potential for human capital growth. Corruption also creates uncertainty for foreign investors in a country who do not know if bribes or government regulation could harm business. This limits the private sector job market for youth who do receive education. In a society where who you know is more important than what you know, youth are often discouraged from studying and from pushing impactful reforms on their go…