The Indicator from Planet Money · Thursday, July 30, 2026
Economist Ray Fisman argues that corruption is detrimental to economic growth, countering the idea that it can 'grease the wheels' of commerce. He highlights 'indigenous red tape' – regulations created to extract bribes – and rent-seeking societies where success depends on proximity to officials rather than product quality, leading to overall economic decline and stagnation.
“And so we have this problem of what's called indigenous red tape.”
“That is where success is dictated by who can get closest to, um, uh, public decision makers rather than who makes the best product and so forth.”
“Looking at the data overall, Ray says that corruption is associated with lower economic growth.”