- Research Article
3
- 10.1300/j097v14n01_05
Impact of Corruption on the Development of Information and Communications Infrastructures in Bulgaria and Romania
- Feb 05, 2008
- Journal of East-West Business
- Laszlo A Pook
Bulgaria and Romania joined the European Union in January of 2007. Joining the EU is expected to promote the candidate country's economic growth, provide access to western technology, increase employment and attract foreign investments, the collective result of which is expected to be social, economic and technological advancement. In a perfect world where all factors contribute favorably those goals can be achieved. However, the detrimental impact of corruption on achieving national goals must also be addressed. This article examines linkages between information infrastructures and social development in Bulgaria and Romania as well as investment needs and financing were addressed with the objective to improve National Information Infrastructures (NII), expected payoffs from NII improvements were identified; the role of corruption in retarding information infrastructure development was also investigated. Using regression analysis the relationship between information infrastructures, social development, corruption, and economic development in Bulgaria and Romania were compared to those of the EU10 countries admitted into the EU in 2004 as well as to those in the original EU15 countries. It is concluded that given present conditions in Romania and Bulgaria development financing will have to come from internal and from World Bank sources rather than from foreign direct investment.
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