Nigeria’s former minister of Finance and Managing Director of the World Bank, Mrs. Ngozi Okonjo-Iweala, yesterday warned that if corruption is not properly checked, it would result to another economic recession, especially in developing countries.
Okonjo-Iweala, who sounded this warning in an interview she granted the CNN, decried a situation whereby corruption has become a globalised phenomenon where money leaves developing countries illicitly and finds its way into the banking and financial sectors abroad in developed countries.
She, however, observed that it takes a partnership to have the foreign countries return the money to the developing countries where it belongs, adding , “There is a United Nations convention against corruption which combines a framework for this to happen in a much faster way”
She said, “We see the world economy recovering with the developing countries growing at 6%. Much of the world’s growth is coming from developing countries, but in Europe, there is a problem. If this continues and we keep seeing a rise in the situation where interest rates are high and capital is unaffordable for many countries, especially the developing countries where these could lead to another recession.
“We hope this will not happen. We hope the recovery will continue. We think governments are taking responsible measures by discussing how to balance fiscal consolidation with resumption of growth.”