Corruption
Corruption is the abuse of entrusted authority for private or political gain, involving bribery, embezzlement, nepotism, and abuse of power. It undermines development, reduces government legitimacy, and perpetuates inequality.
Real World
The 1MDB scandal in Malaysia saw an estimated $4.5 billion embezzled from a state development fund by officials connected to Prime Minister Najib Razak, diverting funds intended for infrastructure and poverty reduction into private accounts and luxury assets.
Exam Focus
When 'explaining' how corruption hinders development, link each mechanism (e.g. diverted funds, deterred FDI) to a specific development outcome — chains of causation score highest.
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