CORRUPTION AND ECONOMIC STAGNATION IN SOUTHEAST ASIA: A LEGAL REVIEW OF THE RELATIONSHIP BETWEEN GOVERNANCE FAILURE AND ECONOMIC GROWTH

Abstract

Corruption remains a persistent structural issue that continues to plague the governance system in the Southeast Asia region. The high level of corruption has had a profound impact on governance, directly contributing to economic stagnation in several countries. This study aims to analyze the relationship between governance failure due to corruption and economic stagnation in Southeast Asia and to evaluate the role of law in addressing this issue. This study employs normative and empirical legal methods, utilizing a legislative, comparative, and case study approach. Data were obtained through literature studies and documentation of laws and regulations, the Corruption Perception Index (CPI), governance indicators, and regional macroeconomic data. The study’s results indicate that governance failure in Southeast Asia is characterized by weak legal supremacy, low bureaucratic accountability, and ineffective anti-corruption institutions, all of which have a direct impact on the investment climate, national productivity, and long-term economic growth. Although most countries in the region have anti-corruption regulations, their implementation remains weak due to political interference and inequality in the judicial system. Therefore, progressive legal reform, strengthening of anti-corruption institutions, and harmonization of ASEAN anti-corruption regulations are important agendas in promoting clean governance and sustainable economic growth