The Bank states that “corruption undermines development by distorting the rule of law and weakening the institutional foundation on which economic growth depends.”6 Fortunately, there is some evidence from studies of emerging markets that firm-level corporate governance matters more in countries with weak legal systems, and one can infer from this work that firms can partially compensate for ineffective legal systems by practicing ethical behavior.7 Let me close by saying that the economy of the United States depends greatly on an educated workforce.
My own research demonstrates that our productivity boom of the last nine years requires a talented and flexible work force.8 Education, however, must be broadly defined to include moral and ethical behaviors and good decisionmaking.