The consequence of systemic failure in national accountability systems is catastrophic corruption. Such corruption exists in the world, including in conflict-affected and fragile countries, resource rich countries, and aid-dependent countries. This Development Practice Note (DPN) explores, through a public finance lens, how corruption flourishes when there is a failure in national accountability systems. This is done through the “follow-the-money corruption cycle,” which tracks corruption mechanisms as funds move through the entire public finance system.
Read additional analysis from the author on the International Money Fund’s (IMF’s) Public Financial Management blog and view a presentation given to U.S. Treasury Office of Technical Assistance’s Budget and Financial Accountability Team Meeting on the topic here.