This paper discusses the relationship between corruption and economic development. It questions the view that under certain conditions, corruption may enhance efficiency and argues that though corruption may benefit powerful individuals, it will indubitably lead to greater inefficiency and a waste of resources at a macroeconomic level. Following a brief introduction, the author suggests that a possible cause of corruption is the weak productive base, the essential condition for the appearance of shortage which, in turn, spurs corruption. Some possible impacts of corruption are then examined.
