In early 2019, The Economist reported that Venezuela’s GDP had fallen by 50% over just five years. During the same time period, charges of bribery and corruption were piling up upon members of the Venezuelan government, including President Nicolás Maduro, whose reelection that year was widely perceived as illegitimate. Using what you learned in the chapter, indicate how bribery and corruption in the Venezuelan government could lead to declines in GDP. a. The negative impact of bribery and corruption on growth is primarily due to their impact on consumption . What are some of the crucial elements that governments must provide to encourage innovation and growth?
b. Governments should
A. adopt efficient regulations.
B. recognize and guarantee property rights.
C. establish and maintain a stable society.
D. embrace policies that encourage innovation.