Controversies of Corruption

Fabian Zhilla

doi:10.5901/mjss.2015.v6n3p400

Abstract

Corruption is widely conceived as producing negative effects for the society. However, there are still many controversial issues surrounding this phenomenon which may be seen critically. Some consider them the “positive” aspect of corruption. What can constitute corruption in public sector cannot be seen as such in the private sector. Research shows that corruption may not be as harmful for the society in certain stages of development. And yet financial instrument thought to stimulate the economy of a developing country may have adverse effect. Foreign aid has proved a vivid example. This research aims to broaden the prospect of a critical analysis of the role of corruption in society. To do that, this research will see corruption in the context of three sectors, the economy, public investments and foreign aid. DOI: 10.5901/mjss.2015.v6n3p400

Highlights

Corruption is perceived as one of the main factors rooting the economy worldwide
Financial instrument thought to stimulate the economy of a developing country may have adverse effect
We show that while corruption may have some “external” effects, there may be positive financial instruments for the development which may have an adverse effect if the process is corrupted

Summary

Introduction

Corruption is perceived as one of the main factors rooting the economy worldwide. It has become a problem even in developed countries ( Jolly 2014). The study of corruption got attention of the researchers after the cold war It was especially on the focus of the international organisations such World Bank in relation to the developing countries. Research shows that corruption may not be as harmful for the society in certain stages of development. This research will see corruption in the context of three sectors, the economy, public investments and foreign aid. The research shows that the developing stage of the society should be considered very carefully before defining corruption as a malicious phenomenon.

The Concept of Corruption in Public and Private Sector

Corruption Effects on the Society

Detrimental Effects of Corruption to Economic Growth

External Effects of Corruption

Corruption in Development Assistance

Conclusion