THE IMPACT OF CORRUPTION ON ECONOMIC FREEDOM

The aim of the article is to analyze the influence of corruption on different aspects of economic freedom. Nowadays on macroeconomic level, the terms economic freedom, globalization, and corruption are increasingly intertwined. There are ten factors for measuring the level of economic freedom. The level of openness and democracy in the political and economical systems has influence on the level of corruption. The development of the legal and institutional infrastructure is connected with radical changes in the society and the economy that were taken part recently in many counties. There are two central dangers: disorder and dictatorship that any society faces. The main problem is how to find an optimal tradeoff between the costs of disorder and those of dictatorship via institutions-building. Disorder is also connected with the private subversion of various public institutions (such as for example courts) through bribes and threats. Another extreme situation is dictatorship. One advantage of the fundamental economic reform approach is that by linking anticorruption strategies to the reform of economic policies and institutions, the fight with corruption can be seen as one of the issues in economic policy. Finally, anticorruption strategies are related to the reform of state institutions. Nowadays the role of the state in the economy is increasing. States suppose to provide stable and reliable conditions, under which firms organize, compete, cooperate, and exchange. Counteracting corruption requires actions in the following areas: prevention, education, and disclosure and elimination of corruptive practices.