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Corruption and economic development on the Baltic littoral: Focus on Latvia

Abstract This paper explores corruption and its impact on economic development on the Baltic littoral. Its main focus is on Latvia, the country with the weakest economy and allegedly the most affected by corruption. Comparative rankings of Baltic countries on corruption and various indicators of economic freedom reflect how much is at risk in allowing corruption to continue unchecked. The paper explores the origins of corruption in weak social organizations and deficiencies in social capital, and ends with policy suggestions for corruption abatement.