Evidence from Uganda confirms that corruption retards development even more than taxation does.Exploiting a unique data set containing information about the estimated bribe payments of Ugandan firms, Fisman and Svensson study the relationship between bribe payments, taxes, and firm growth in...

Disbursements of foreign aid are guided (in part) by the needs of the poor. Anticipating this, recipients have little incentive to improve the welfare of the poor. In principle, conditionality could partly solve the problem, but this requires a strong commitment ability by the donor. Without...