STRATEGIC DIRECTIONS TO OVERCOMING CORRUPTION: FINANCIAL AND LEGAL PERSPECTIVES

Abstract

Abstract. Corruption was always intrinsic to all types of economy, but the most developed countries had the smallest level of corruption and this rule worked opposite. But recently, the scope of the problem has increased and changed sharply around the world. This negative phenomenon in a long run is absorbing almost all executive branches. So, the article is devoted to analyzing the main spheres and areas of corruption. Results showed that many countries have high rates in a corrupted society. The article shows the reasons and roots of corruption behavior. Regression analysis for the Rule of Law Index and corruption indicators is carried out with a focus on the relation between ROL Index and CPI, GCI. The direct link between ROL Index and CPI is confirmed empirically (R2 = 0,9155). Also, an indirect link between ROL Index and GCI (R2 = 0,9294), ROL Index and ESG Index is confirmed (R2 = 0,7209). The main recommendations was given to develop and implement the integrated anti-corruption technologies in the tangent spheres: public administration, local self-government, justice, education and medicine, et. Major approaches that define the rule of law were clarified with the aim to prove the interaction between non-compliance of rule of law and the appearance of corruption as a phenomenon. It is considered that the rule of law and human rights are two sides of the same principle that defines the freedom to live worthily without corrupted actions that destroy people’s independence firstly from the shadow economy and secondly from dishonest behavior from different dependent officials. Keywords: rule of law, corruption, correlation, Corruption Perceptions Index, Rule of Law Index, Environmental, Social and Governance Index, Global Corruption Index. JEL Classification C40, F68, G38, K40, K42 Formulas: 1; fig.: 14; tabl.: 1; bibl.: 60.