State THREE ways in which corruption impacts economic development in a country ?

1. Misallocation of resources: Corruption often leads to resources being allocated based on personal connections or bribes rather than merit or need. This can result in inefficient use of resources and hinder economic development.

2. Reduced foreign investment: High levels of corruption can deter foreign investors from doing business in a country, as they may be concerned about the risks and uncertainties associated with corrupt practices. This can limit the flow of capital into the country and slow down economic growth.

3. Weakened institutions: Corruption can undermine the effectiveness and credibility of key institutions such as the judiciary, law enforcement, and regulatory bodies. This can erode trust in the government and the rule of law, leading to a lack of confidence in the business environment and hindering economic development.