ETHICS, CORRUPTION, GOVERNANCE AND EMERGING MARKETS

Abstract

In this article we seek to substantiate the relation between ethics, corruption, governance and development in emerging markets, especially in Latin America. This is a theorical article where we develop a conceptual model with relations between ethics, corruption and the improve of governance of the countries. We first construct a relation between ethics and corruption and between corruption and governance of the country. For doing this last relation, we consider that the level of the corruption in a country is opposite of the level of governance. Then, we try to provide evidence of the relation between the levels of governance of twenty five emerging nations and their economic performance indicators. The data of the twenty five emerging countries around the world, that we use in the tables, were collected at the World Bank site. We observe the need to improve the ethic all around the countries in Latin America and in many of the emerging countries. We also observe the need to diminish the corruption in some of emerging countries. We conclude that institutions and governments must act speedily and effectively to improve the environment for business in various emerging markets, in order to provide more adequate conditions for world trade growth and satisfy the needs of consumers worldwide.