Why are developing countries dependent on export of a few major products particularly vulnerable to corruptions?
Correct answer: B. The revenue arrives in a very concentrated form of large payments oh hard currency
- A. Those exports are typically controlled by a handful of large landowners
- B. The revenue arrives in a very concentrated form of large payments oh hard currency
- C. When the price for those exports drops on the world market, local government officials seek to supplement their income by corrupt means
- D. It is nearly impossible to officially track the value and payment receipts for a few large exports in developing countries
Explanation
A few export commodities can generate very large foreign-currency payments that are difficult to monitor and easy for officials or elites to divert. This concentrated revenue stream creates strong opportunities for corruption.
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Practise International Political Economy
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