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Corruption in Eastern Europe: A Roadblock to Fair Business Practices

Updated: Apr 11

As the countries of Eastern Europe continue to integrate into the global economy, corruption remains a pernicious obstacle hindering the establishment of fair business practices and sustainable growth. This pervasive issue, which affects various facets of society, including political institutions, public administration, and private enterprises, undermines the region's potential for economic development and investment (Borcan et al., 2018). This article delves into the nature of corruption in Eastern Europe, its implications for the business environment, and potential strategies for addressing this deep-rooted problem (Johnson & Kuhn, 2017; Pellegrini & Radošević, 2011).

Transparency International's Corruption Perceptions Index (CPI) consistently ranks several Eastern European nations among the most corrupt countries globally, with bribery, embezzlement, and nepotism being prevalent issues (Transparency International, 2020). These illicit practices can discourage foreign investment and hinder local entrepreneurship, as they create an uneven playing field for businesses and perpetuate economic disparities (Borcan et al., 2018; Pellegrini & Radošević, 2011).

In addition to its direct economic consequences, corruption in Eastern Europe also has a corrosive effect on public trust and confidence in institutions. This erosion of faith in governance can lead to political instability, exacerbating the region's already fraught geopolitical climate (Johnson & Kuhn, 2017). Moreover, corruption undermines the rule of law and the effectiveness of regulatory frameworks, further constraining the potential for fair and transparent business practices (Mungiu-Pippidi, 2015).

Addressing corruption in Eastern Europe requires a multi-pronged approach that encompasses legal, institutional, and societal reforms. Firstly, strengthening the rule of law and enhancing the independence of judiciary systems are critical to ensuring the impartial enforcement of anti-corruption measures (Mungiu-Pippidi, 2015; Pellegrini & Radošević, 2011). This can include the establishment of specialized anti-corruption courts, as well as the promotion of transparent and merit-based appointment processes for judges and other key officials.

Secondly, fostering a culture of transparency and accountability in both public and private sectors is essential for combating corruption (Borcan et al., 2018). This can be achieved through the implementation of robust systems for the disclosure of conflicts of interest, the adoption of international best practices in public procurement, and the promotion of open data initiatives that enable public scrutiny of government and corporate activities (Johnson & Kuhn, 2017).

Lastly, engaging civil society and the media in anti-corruption efforts can be a powerful tool for raising awareness and promoting public vigilance against corrupt practices (Mungiu-Pippidi, 2015). By supporting the work of investigative journalists, whistleblowers, and non-governmental organizations, Eastern European countries can foster a more informed and engaged citizenry, capable of holding institutions and businesses accountable for their actions.

In conclusion, corruption in Eastern Europe poses a formidable challenge to the establishment of fair business practices and sustainable economic development. However, by implementing a comprehensive approach that addresses the legal, institutional, and societal dimensions of the problem, the region's nations can begin to dismantle the roadblocks posed by corruption and unlock their full potential for growth.


Borcan, O., Olsson, O., & Putterman, L. (2018). State history and economic development: Evidence from six millennia. Journal of Economic Growth, 23(1), 1-40.

Johnson, S., & Kuhn, M. (2017). Corruption and economic development in Eastern Europe. Eastern European Economics, 55(4), 261-275

Mungiu-Pippidi, A. (2015). The quest for good governance: How societies develop control of corruption. Cambridge University Press.

Pellegrini, L., & Radošević, S. (2011). Knowledge-based economy and social capital in Central and Eastern Europe. Communist and Post-Communist Studies, 44(1), 19-32.

Transparency International. (2020). Corruption Perceptions Index 2020. Sourced from

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