Economic Effects of Using Nepotism and Cronyism in the Employment Process in the Public Sector Institutions

Abstract

<p>This study aims to discern the role of nepotism and cronyism in the weakening of economic<br />performance of the government institutions through exposure to this practice in the three<br />Arab Countries; Iraq, Saudi Arabia, and Jordan, The study relied on the analysis of what was<br />stated in the related literature which illustrate the effect of using nepotism and Cronyism in<br />the employment process in a governmental position, to result in a slowdown and stumbled in<br />the delivery of government services to citizens. After analyzing how the practice of nepotism<br />and cronyism in the three countries, the study found the following results:<br /> Nepotism and cronyism are practiced not only in developing countries, but also in<br />advanced countries.<br /> Using nepotism and cronyism in employment process is unethical behavior.<br /> The use of nepotism and cronyism in the public sector is much more than private sector.<br /> Nepotism and cronyism can be considered as a part of the national culture in Arab<br />countries.<br /> Nepotism and cronyism have negative economic repercussions, both at the level of the<br />national economy, or the per capita income level. Because the salaries paid to staff<br />recruited through them considered as a burden on the state treasury. Also, the large<br />number of times to visit the citizen government department, to get the same service, lead<br />to the loss of his income as a transition expenses.<br /> Nepotism and cronyism are from reasons of administrative corruption in the studied<br />countries.</p>