Premium Essay

Corruption and Development

In:

Submitted By spahwa
Words 3084
Pages 13
DEVELOPMENT THEORY AND EXPERIENCE PROJECT
CORRUPTION AND DEVELOPMENT

PREPARED BY:-
SHREYA BHARADWAJ(623)
SWATI PAHWA(662)

CONTENTS 1. What is corruption? 2. Need for a theory of corruption 3. Origin of corruption 4. Causes of corruption 5. Measuring corruption 6. A sketch of a theory linking corruption and development. 7. Correlation 8. Effect of corruption on development 9. Conclusion
10.Bibliography
11. Appendix

1. What is corruption?
Now-a-days corruption can be seen everywhere. It is like cancer in public life, which has not become so rampant and perpetuated overnight, but in course of time. When we talk of corruption in public life, it covers corruption in politics, state governments, central governments, "business, industry and so on. Public dealing counters in most all government offices are the places where corruption most evident. If anybody does not pay for the work it is sure work won't be done. Corruption is a particularly serious issue in developing economies like India. “High levels of corruption limit investment and growth and lead to ineffective government. Developing countries and those making a transition from socialism are particularly at risk, but corruption is a worldwide phenomenon.”
“If corruption does slow down economic development, East Asia must be an exception because while the region seems corrupt, it is able to attract lots of foreign investment and generate growth.”

2. The Need For A Theory Of Corruption.
Corruption is an endogenous phenomenon of organisations and societies. In order to target the right level of corruption in a society, it is essential to design a proper cost/ benefit analysis, and therefore to build a good understanding of the mechanics of corruption.
A scientific approach to the analysis of corruption is a necessary requirement

Similar Documents

Premium Essay

Corruption Effect in Economics Development

...Economics Development Final Assignment Endemic Corruption Cases in Indonesia’s Economics Development [pic] International Undergraduate Program Poppy Puspita Rini 1006718624 Statement of Authorship I certify that the attached material is my original work. I declare that no other person’s work has been used without due acknowledgement. Except where I have clearly stated that I have used some of material elsewhere, it has not been presented by me, for examination in any other course or unit at this or any other institution. I understand that the work submitted may be reproduced and/or communicated by the University or third party authorized by the University for the purpose of detecting plagiarism. Name : Poppy Puspita Rini Student Register Number : 1006718624 Depok, June 11 2013 Poppy Puspita Rini Introduction Corruption in Indonesia is widespread and costly. Recently, corruption cases become a major on-going economics development sector issue. Indonesia’s Corruption Eradication Commission (Indonesian: Komisi Pemberantasan Korupsi) (abbreviated KPK) shows there has been a sharp increase in all enforcement activity, relating to the sector. Political organizations in economic sector continue to face significant corruption risks. How far the current corruption and bribery case in Indonesia’s economic development? ...

Words: 8080 - Pages: 33

Premium Essay

Phillip Corruption and Sids Development

...Corruption and Development Making the link between corruption and development: An Appraisal of Selected SIDS Genève Phillip (Ms) University of the West Indies Author Note Ms. Genève Phillip, University of the West Indies, St. Augustine Campus, Trinidad and Tobago c/o Head, Department of Behavioural Sciences, Faculty of Social Sciences E-mail: geneve.phillip@sta.uwi.edu/genphillip18@yahoo.com Abstract: The development strategies of small island developing states have promoted extensive, ongoing and intense debate in academia. In assessing the political economy of SIDS it is useful to note not only the factors that give way to development but also the ones that impede it. While a variety of models have been used to describe the development strategies of SIDS, the extent to which some of these models have been able to adequately capture the major constraints to development in Caribbean SIDS is questionable. Having said this, the overarching argument in the discourse which follows is that corruption can be a major hindrance to the development efforts of Caribbean SIDS. In addition to this, an investigation will be launched into the impact that corruption has had on the development of Jamaica and Trinidad and Tobago. For all intents and purposes, the selected duo consists of one largely homogenous state and one heterogeneous state which will be juxtaposed to determine whether any similarity exists in the degrees of corruption in both countries. The...

Words: 7580 - Pages: 31

Premium Essay

Assess the Effects That Corruption May Have on Economic Development. How Do You Reconcile the Anecdotal Evidence with Theoretical Ideas?

...Assess the effects that corruption may have on economic development. How do you reconcile the anecdotal evidence with theoretical ideas? Introduction The World Bank defines corruption as: “abuse of public office for private gains”1. Corruption is seen to be an integral part of human society and demonstrates itself through a variety of ways – bribing politicians, using kickbacks or tipping a waiter in a restaurant to get a better table are all examples of corruption. Corruption is generally seen as an important factor that hinders the economic development of an economy. Overwhelming amount of literature, through presenting empirical and anecdotal evidence, argues that corruption reduces the efficiency, economic growth, domestic and foreign direct investment (FDI), disadvantages the poor, reshapes the government spending to an unsustainable way and is generally harmful for the economy. A small proportion of literature on corruption, however, presents rigorous arguments in favor of corruption- presenting evidence that corruption may actually “speed up the wheels of commerce” Wei (1998) and hence stimulate economic growth. My essay is based on the assumption (which most of the authors on corruption agree on) that generally – corruption is harmful for the economy, however one should distinguish the effects of corruption on a developed and developing economy. The main argument of my essay is that there is a major distinction between effects of corruption on developed and developing...

Words: 631 - Pages: 3

Free Essay

Solutions to the Weaknesses of Globalisation and Corruption

...and corruption in the world that we are currently living based on the mixed economic worldview which is my personal economic worldview which threatens to undermine the stability of economic and political development on both a national and global scale, and which requires both immediate and wide-ranging policy interventions. The recent concern with corruption is attributable, not to any substantive increase in corrupt practices, but rather, to the re-framing of corruption in light of broader shifts and transformations within the global economy. The historical context of globalization covers centuries. This paper reviews the types, forms as well as the consequences of corruption. The paper also reviews the issues associated with globalization and the effect it has on the lives of various individuals. It questions the view that, under certain conditions, corruption may enhance efficiency and argues that though corruption may benefit powerful individuals it will indubitably lead to greater inefficiency and a waste of resources at a macro-economic level. Table of Contents ABSTRACT i INTRODUCTION iii BACKGROUND iv Forms of Corruption vi 1.1 Bribery vi 1.2 Theft and fraud vi 1.3 Embezzlement vi 1.4 Nepotism vi 1.5 Conflict of Interest vi 1.6 Favouritism vii Types of Corruption vii 2.1. Grand corruption vii 2.2 Political corruption vii 2.3 Corporate corruption vii 2.4 Administrative corruption vii 2.5 Petty corruption vii 2.6 Systemic corruption vii ...

Words: 5314 - Pages: 22

Free Essay

Corruption in Nigeria

...CHAPTER THREE CONCEPT OF NATIONAL DEVELOPMENT 1. MEANING AND NATURE OF DEVELOPMENT Development is a multi-dimensional process. Development according to international encyclopedia of social science "is a rapid sustained rise in real output per head and attendant shift in technological, economical and demographic characteristic of a society together with the more concept of social development and political development". Walter Rodney opined that "Development in human society is a many sided process. At the individual level it implies increased skill and capability, greater freedom, creativity, self discipline, responsibility and material well being". Amaucheaz, in his submission stated that, development is a multi-dimensional process involving the totality of man in his political,, economical, psychological, social relations among others. Development as a concept is multi-dimensional phenomenon that embraces economics, political and socio-cultural aspect of a nation. When the political, social and economic conditions of a state are in good shape, that state qualifies to be termed developed or developing state. 3.2 NATIONAL DEVELOPMENT STRATEGIES, NEED AND ECONOMIC DEVELOPMENT. The national development strategy is a means, way, and plan in which the government formulates and implements its policies in order to accelerate the rate of development in the policy. Obasanjo administration made series of efforts to lay a solid foundation for the socio-economic growth...

Words: 4660 - Pages: 19

Free Essay

Corruption in Local Govt Administration

...Hewlett-Packard [Year] CORRUPTION AND LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA: Introduction Nigeria is rich in natural and human resources, with a population of over 150 million people; the most populous country in Africa. At the time of her political Independence, on 1st October 1960, Nigeria excelled in production of agricultural produce such as groundnut, palm oil, cocoa, cotton, beans, timber and hides and skins. Then, during the oil boom period of the seventies Nigeria made headlines with her oil wealth, as a country richly endowed with oil and natural gas resources capable of financing a number of important projects to meet basic consumption and development needs (Salisu, 200:2). With per capital income of around $1,100 during the late 1970’s Nigeria was regarded as the fastest growing country in Sub-Sahara Africa (Salisu, Ibid). Yet it remains predominantly underdeveloped due to the scourge of corruption that has corroded it. Corruption denies the ordinary citizen the basic means of livelihood, it worsen unemployment and erodes our image as a nation and as individual (Danjuma Goje 2010:1). It has undermined Nigeria’s economic growth and development potential, with a per capital income of $340, Nigeria now ranks amongst the least developed countries in the World Bank League table (Salusi, op.cit). Nigeria’s higher education system once regarded as the best in Sub-Sahara Africa is in deep crisis. Health services are woefully inadequate, graduate unemployment...

Words: 2922 - Pages: 12

Premium Essay

Corruption

...Corruption is a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. Corruption may include many activities including bribery and embezzlement, though it may also involve practices that are legal in many countries. https://www.google.com.ph/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=corruption Political corruption is the use of powers by government officials for illegitimate private gain. An illegal act by an officeholder constitutes political corruption only if the act is directly related to their official duties, is done under color of law or involves trading in influence. Forms of corruption vary, but include bribery, extortion, cronyism, nepotism, gombeenism, parochialism patronage, influence peddling, graft, and embezzlement. Corruption may facilitate criminal enterprise such as drug trafficking, money laundering, andhuman trafficking, though is not restricted to these activities. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is also considered political corruption. The activities that constitute illegal corruption differ depending on the country or jurisdiction. For instance, some political funding practices that are legal in one place may be illegal in another. In some cases, government officials have broad or ill-defined powers, which make it difficult to distinguish between legal and illegal actions...

Words: 6310 - Pages: 26

Premium Essay

Business

...The Hong Kong Polytechnic University MGT682 Independent Studies Corruption in China: Effects on Economic Development and Remedial Policies Thomas Wu 02715615G August 6, 2003 The Hong Kong Polytechnic University MGT 682 Independent Studies Corruption and Bribery in China Thomas Wu 02715615G August 6, 2003 Table of Content RESEARCH PROPOSAL TOPIC.........................................................................................................3 INTRODUCTION....................................................................................................................................3 OBJECTIVES AND HYPOT HESIS.......................................................................................................4 NATURE OF RESEARCH.....................................................................................................................5 RIVAL THEORIES.................................................................................................................................5 “GREASE-THE-WHEELS” THEORY .........................................................................................................5 MULTIPLE EQUILIBRIUMS ......................................................................................................................7 LOGIC MODEL......................................................................................................................................8 SIGNIFICANCE OF STUDY..............................

Words: 13305 - Pages: 54

Premium Essay

Poverty in Small Countries in Africa and the Roll of Corruption

...in Africa and the Roll of Corruption The major cause and reason for poverty around the globe is corruption. Unfortunately corruption occurs at all levels of every society, from national to local governments, judiciary functions, civil society military, small and large businesses and other services and so on (www.globalissues.org). The poorest countries are mostly affected by corruption despite it being in almost all nations. Political development is undermined by corruption since all aspects of society are somewhat affected (www.globalissues.org). It is not fundamentally useful to make collective differences between corruptions in several parts of the globe. In the end it all comes down to the same thing the abuse or use of public office and resources for private gain. However, corruption can be split into grand corruption, petty corruption and looting (unpan1.un.org). Petty corruption is a situation where small gifts and small amounts of money change hands. The parties involved are relatively minor officials within an organization where the transaction took place. An example is paying a policeman a dollar to look the other way after doing a minor infraction (unpan1.un.org). Grand corruption is a situation whereby a businessman and a senior ranking government official, and the figures exchanging hand are significant. A good example is the kickback received after government tenders or contracts are awarded. Looting is the third type of corruption. It has recently been described...

Words: 1554 - Pages: 7

Premium Essay

Corruption

...Business and Behavioral Sciences Vol. 2, No.6; June 2012 Corruption: Causes and Effects in Pakistan’s Case (A Review Research) *Dr. Muhammad Tariq Khan1, Dr. Naseer Ahmed Khan2, Sheraz Ahmed3, & Khalid Mehmood4 1 Assistant Professor, Department of Management Sciences University of Haripur, PAKISTAN 2 Postmaster General, Pakistan Post, Rawalpindi, PAKISTAN, 3Lecturer, Department of Management Sciences University of Haripur, PAKISTAN, 4Lecturer, Department of Management Sciences Hazara University, PAKISTAN *tariq_phd@yahoo.com Abstract There is a growing worldwide concern over corruption at the present time. The increasing public interest and concern over corruption have resulted in a large amount of scholarly research on the subject. The concept of economic rent is important in corruption. In Pakistan, the corruption is deep rooted and has many dimensions. There are several causes and remedies for the public policy makers to root out corruption in Pakistan. Key Words: Corruption, Economic rent, Developmental obstacle. Social evil, Remedies Introduction Corruption is a universal curse around the world and exists in all the countries as a common phenomenon, both in developing or poorer countries and developed countries. The difference is only of the degrees of corruption. In the last five years, leading politicians in U.K., Belgium, France, Spain and Italy have been convicted of corruption and in fact, the entire European Commission resigned because...

Words: 7080 - Pages: 29

Premium Essay

R.A. 6713

...EC-OMB Corruption Prevention Project Integrity Development Review of the Department of Agrarian Reform Executive Summary The Department of Agrarian Reform (DAR), now called Department of Land Reform, was created by virtue of Republic Act 6389 signed into law on September 10, 1971. It is the lead implementing agency of the government’s Comprehensive Agrarian Reform Program (CARP). It undertakes land tenure improvement, development of beneficiaries, land surveys in resettlement areas, land acquisition and distribution and delivery of support services to farmer beneficiaries. Ten dimensions were assessed under the Integrity Development Review Project namely, Leadership, Code of Conduct, Gifts and Benefits Policy, Human Resource Management, Financial Management, Performance Management, Whistleblowing, Internal Reporting and Investigation, Corruption Risk Management, and Interface with the External Environment. The assessment provided a thorough diagnosis of corruption vulnerability and resistance, availability of control mechanisms and the effectiveness of existing systems. Agency strengths include compliance to minimum standards of laws pertinent to corruption prevention except for Gifts and Benefits and Whistleblowing and Internal Reporting, which are both fairly new concepts being integrated into government systems. The agency has a fairly high rating for Human Resources Management as it has achieved level of enforcement of policies required in this dimension. For Performance...

Words: 949 - Pages: 4

Premium Essay

Ang Mga Bata

...Sir Dennis Duyag Introduction Corruption has recently become a major issue in foreign aid policies. However, behind the screens it has always been there, referred to as the “c-word”. The major concern for international aid policy through the last five decades is to improve the living conditions for the poor in the poorest countries of the world. This endeavour requires a close co-operation with the national governments in poor countries. Generally speaking, however, the governments in poor countries are also the most corrupt. This is one of the few clear empirical results of recent research on corruption. The level of GDP per capita holds most of the explanatory power of the various corruption indicators (Treisman, 2000; Paldam, 1999a). Consequently, if donors want to minimise the risk of foreign aid being contaminated by corruption, the poorest countries should be avoided. This would, however, make aid policy rather pointless. This is the basic dilemma corruption raises for aid policy. Unlike international business most development aid organisations and international finance institutions have the lion’s share of their activities located in highly corrupt countries (Alesina and Weder, 1999). The international community in general and some donor countries in particular are, however, increasingly willing to fight corruption. Within the “good governance” strategies of the World Bank and the International Monetary Fund initiatives to curb corruption are given priority. OECD and the...

Words: 1740 - Pages: 7

Premium Essay

State of Hartal and Corruption in Bd

...Introduction: The economy of Bangladesh is characterized as poor and developing. In a developing country like Bangladesh, hartal, crime and corruption are some of the major impediments of economic growth. All type of people suffers from these problems. During hartal, schools, colleges and universities, business institutions, offices, transportation and others facilities remain closed. So students can not join in class or seat in exam, the business people and officials cannot go to their workplace. During harlal,the poor, mainly, suffer a lot because they deprive from their daily earnings. The poor suffer from corruption in many ways. Their access to services, such as public health and education, is reduced when drugs and textbooks are stolen from public facilities and sold privately and when doctors and teachers have high rates of absenteeism from their public jobs and sell their services privately. Corruption invariably channels public resources to the rich–the poor lack the funds to bribe or pay for the private provision of services that are supposed to be provided for free as public services. Almost everybody suffers from corruption, but the poor suffer more. Economic crises tend to have a series of impacts on society and security, depending on their severity and on people’s capacities to cope with and adapt to stresses on livelihoods and community relations. this leads people to engage in crimes which in tern, hinder the economic growth of the country. Hartal: Hartal...

Words: 3334 - Pages: 14

Free Essay

Poverty

...services and so on.corruption undermines political development, democracy, economic development, the environment, people’s health and more. The Dark Side of Social Evolution (London: Anthem Press, 2002), “Rich countries and their agencies … commonly have been and are accomplices in corruption abroad, encouraging it by their actions rather than impeding it… · The impact of Cold War corruption (supporting dictatorships, destabilizing democracies, funding opposition, etc); · Firms from rich countries bribing rulers and officials from developing countries to gain export contracts, particularly in the arms trade and in construction (even justifying it by suggesting bribery is “customary” in those countries, so they need to do it to, in order to compete); · The “corruption-inducing effects of the purchase, by the rich countries and their international corporations, of concessions in Third World countries to exploit natural deposits of oil, copper, gold, diamonds and the like.” Payments made to rulers often violate local (and Western) rules, keeping corrupt rulers in power, who also embezzle a lot of money away. · The drug trade. Neild suggests that international law and national laws in rich countries that prohibit drugs may serve to “produce a scarcity value irresistible to producers, smugglers and dealers.” Governments and civil society in the third world are often “undermined, sometimes destroyed” by the violence and corruption that goes with the drug trade. “This is probably...

Words: 1356 - Pages: 6

Premium Essay

Liberia Correption

...factors that are costing it high level of Corruption in public offices, What are the roots costs of the corruption, how its affecting the Country and its people at lager. I also investigated what mention could be put into place to help the Liberian combat, eliminate or eradicate their nightmares ( the corruptions ) from their country. I did consider some pacific President terms in office as well. Liberia is bounded on the west Coast of Africa by these following Countries; on the north by Guinea, on the west by Sierra Leone, on the East by Ivory Coast (Cote D’Ivoire) and on the South by the Atlantic Ocean. The name Liberia came from a Greek word which mean Liberty/Freedom was given to that portion of land in west Africa which covers the area of 111,369 square kilometers (43,00 sp M) during the arriver of the Freed Slaves and was fully accept during the declaration as an independent State in the 1847. According to the World bank and the IMF historical Account, in the early 1960 Liberia economic growth very fast making it to the second ranking in the world to that of Japan in income. Liberia economic growth report is not new. At different periods in more than half a century ago, Liberia has experienced the so-called fastest economic growth. Liberia was once regarded as the “fastest growing economy in the world”. Liberia's economic growth has been so enviable to the point that economists described Liberia as "growth without development", clearly pointing to Liberia as a good example...

Words: 3164 - Pages: 13