Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati stated that corruption exacerbates conditions in countries with middle-income trap and impedes efforts to achieve the status of developed country.

"One of the key factors of the middle-income trap is the inability of a country to manage threats of corruption in their country," Indrawati stated during the ministry's 2022 World Anti-corruption Day commemoration here, Tuesday.

A country will remain stuck in its middle-income trap if it fails to control and contain corruption, she remarked.

The minister said that corruption issues brought greater burden on countries with a middle-income trap, as they also had to concomitantly address issues pertaining to human resources and policies.

Corruption crimes will sabotage progress achieved in a country and might cause it to fail to develop further in its intended direction, she stated.

Moreover, corruption widens the gap between the super-rich, who control the political and economic aspects of a country, and the poorer residents, who must endure policies disadvantaging them enacted by corrupt means, she pointed out.

Meanwhile, Indrawati recalled that through her visit to more than a hundred countries during her tenure as managing director of the World Bank, she came to the realization that administration, corruption, and institutional arrangement are essential factors that determine the progress of a country.

She said that if a country failed to develop an institution with good governance and checks and balances, then the institution would be plagued by administration abuse and corruption.

Hence, efforts to eradicate corruption must continue to be promoted at the national and international levels to realize a just and prosperous society, the minister underlined.

"We are currently toiling to preserve our economic recovery momentum to free ourselves from the middle-income trap," Indrawati remarked.

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Translator: Astrid FH, Nabil Ihsan
Editor: Sri Haryati
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