Consequences Of Corruption Research Articles

Latin American Corruption in Geographic Perspective

La corrupción, el abuso del cargo público para obtener beneficios privados, es un fenómeno canceroso en América Latina, aunque también varía ampliamente entre los países de la región. Este documento comienza con un breve examen de las causas y consecuencias de la corrupción, incluidos los papeles decisivos de la pobreza, la desigualdad, el analfabetismo, la democracia y los medios de comunicación. A continuación, se profundiza en las raíces históricas de la corrupción en la región, que en algunos casos se extienden a la época colonial. La tercera parte ofrece una serie de viñetas nacional para resaltar la desigualdad espacial de la corrupción. En cuarto lugar, se evalúa la corrupción Latinoamericana utilizando un índice de Transparencia Internacional, mapas, y ofrece algunas correlaciones simples para examinar sus vínculos con el bienestar nacional. La conclusión resume los hallazgos y observa la ineficacia de las campañas de lucha contra la corrupción.

The benefits of anti-corruption programming: implications for low to lower middle income countries

The consequences of corruption are typically examined in terms of the economic costs that they impose on a society. This study suggests that as good an argument can be made for the inverse relationship: significant benefits can be accrued by countries that effectively implement anti-corruption programming. Together, a powerful cost-benefit analysis can serve to motivate practical anti-corruption policy planning and action. An advantage of the “benefits” approach is greater data reliability. The study finds that strong implementation of anti-corruption initiatives is more important to achieving social, political, economic and human development benefits for society than merely establishing a good legal-institutional framework to fight corruption. Raising public expectations without strong delivery of visible anti-corruption programming is especially detrimental. Most interestingly, the study finds that a country’s level of development and wealth has little to do with its level of anti-corruption programming. Thus, it is not a good excuse for Vietnam or other developing countries to point to their level of development or wealth as a reason for why they are not doing as much as they can to implement anti-corruption reforms effectively. A country’s wealth is not a predictor of progress or success in this area.

Conflict between social structure and legal framework: political corruption in Pakistan

There is a growing body of literature on the conflict between social environment and legal system. This article seeks to unravel the contradiction between Pakistan's anti-corruption laws and its social world. The study of this uncharted territory becomes even more urgent when the consequences of corruption are taken into account in the broader context of Pakistan's internal cohesion, democratic development and sustainable growth. Despite the fact that Pakistan inherited a British legal framework based on the division between public and private spheres, the article argues that a greater part of Pakistani society does not recognise such division. The split between public and private realms which provides a conceptual framework for any definition of political corruption seems culturally deficient. In particular, the paper attempts to demonstrate that ethnic loyalties by taking precedence over the public interest give rise to the ‘moral view of corruption', which explains why many people do not view the use of public office for ethnic gain to be an act of corruption. In these particular circumstances, the paper finds an underlying conflict in the treatment of corruption between the social and legal systems. The disparity between the legal system and social world has given rise to grave concern on the part of civil society.

Corruption as a Problem of Political Theory and Political Practice

The present article is dedicated to the analysis of "corruption" from point of view of political practice and political theory. The present article studies historical examples of corruption: corruption during the era of Alexander the Great, Carthage, Roman Republic. The article gives the evolution of the term "corruption", pointing out current aspects of the term. The article provides positive and negative results of corruption, gives resume. The present article analyses corruption results: economical, political and social. Most important economical consequences of corruption are the following: increase of shadow economy, decrease of tax payments, weakening of the state budget, breach of market competition, decrease of market effectiveness, destabilization of the idea of market economy. Most important social consequences of corruption are the following: great distinction between the declared and real values, which creates a "double standard" of the moral and behavior, distraction of great sums from public and humanitarian development, increase of property disproportion, increase of social tension. The present article names most important political consequences of corruption: shift of ideas from public development to the security of power of oligarchy, decrease of trust to the state, decrease of image of the country at the international arena, increase of its economical and political isolation, decrease of political competition. The present article gives one of the resumes that the globalization process increases corruption. Together with globalization most important role is given to corporations and corporate corruption comes to the front raw.

Measuring Local Corruption in China: a Cautionary Tale

The intensification of corruption in China has led to a recent surge of scholarship examining the causes and consequences of corruption within the country. Nevertheless, no consensus exists as to how corruption should be measured at the local level. In this article, I evaluate the internal and external validity of three major groups of measures for local-level corruption in China, namely: perception-based measures, demand-side measures, and supply-side measures. In applying these measures to a model that examines the effect of corruption on local economic growth in China, I show that the results are highly dependent on the choice of the corruption measure. In conclusion, I suggest that future research using local-level corruption as a key variable should at least explore alternative measures to check for the robustness of the findings.

Corruption in the Middle East and North Africa: A Geographic Perspective

Corruption—rent-seeking behaviour in which a few benefit at the expense of the many—is widespread and deeply entrenched throughout the Middle East and North Africa (MENA) region. This article examines this issue geographically. It opens with a discussion of the causes and consequences of corruption, noting its multiple forms and levels of severity and the contexts in which it tends to thrive. Second, the article focuses on MENA corruption in particular, emphasizing the deleterious role of oil exports (the “resource curse”) and offering a series of vignettes of corruption in different countries. Third, it offers an empirical analysis, using data from Transparency International, which illustrates the relative severity of corruption in the area and its relationship to several economic and political variables. The conclusion highlights the principal findings and notes that although anti-corruption campaigns usually fail, other measures can be taken.

Assessing the Strategies of the Defunct Kenyaas Anti-Corruption Commission (KACC): Lessons for the Ethics and Anti-Corruption Commission (EACC)

Corruption has been identified as the biggest obstacle to progress and leading impediment to Kenya’s socio-economic development. The country has been bearing the consequences of corruption, including increase in poverty levels, poor governance, and inadequate provision of basic services. Efforts have been made by past and present governments to curb corruption. One of such was the establishment of the defunct Kenya Anti-Corruption Commission (KACC) in 2003 which was later replaced by the Ethics and Anti-Corruption Commission (EACC) in 2011. This paper examines the anti-corruption strategies of the defunct KACC amidst numerous impediments including unresolved celebrated corruption cases, legal and judicial constraints, absence of prosecutorial power and negative public perception among others, notwithstanding its modest accomplishments. The paper posits that the EACC needs to break away from the past anti-corruption strategies of the KACC which reached marginal ends. Hence, the EACC does not only have the lifetime opportunity of reviewing the anti-corruption strategies of its predecessor to see what went right, but also needs to learn from the pitfalls of the KACC.

Corruption and Tax Evasion: Evidence from Albanian Enterprises

This article focuses on survey data and qualitative evidence from Albanian manufacturing firms to examine the scale and consequences of corruption and tax evasion at the enterprise level. It discusses the costs and benefits from the entrepreneur’s perspective. The vector of covariates includes information about; use of external finance, policy influence, experience of corruption, firms size and ownership structure. To control for differences in the availability of collateral, the proportion of the fixed assets is included. The models used in the paper are probit where the dependent variable is binary and ordered probit where the dependent variable is categorical and orderable. Empirical results show that manufacturing firms operating in an environment in which tax evasion is more prevalent are more likely to suffer demands for bribes from corrupt officials. The regression analysis shows that tax evasion is a matter of degree and that is not limited to small and medium-sized enterprises. Even quite large firms acknowledge concealing part of their sales from tax authorities. Enterprises that are evading taxes are less likely to obtain an external audit. In addition, the data predict that corruption and tax evasion is more likely to occur when the principal owner is male rather than female. Moreover, findings show that the main effect of the separation of ownership on the likelihood of bribery is insignificant.

Enterprises Dealing with Corruption: A Microeconomic Analysis

This study focuses on survey data and qualitative evidence from Albanian manufacturing firms to examine the scale and consequences of corruption and bribery at the enterprise level. It analyses the costs and benefits from the entrepreneur’s perspective. The set of covariates includes information about; use of external finance, policy influence, experience of corruption, firms size and ownership structure. To control for differences in the availability of collateral, the proportion of the fixed assets is included. The models used in the paper are probit where the dependent variable is binary and ordered probit where the dependent variable is categorical and orderable. Empirical results show that manufacturing firms operating in an environment in which tax evasion is more prevalent are more likely to suffer demands for bribes from corrupt officials. The regression analysis shows that tax evasion is a matter of degree and that is not limited to small and medium-sized enterprises. Even quite large firms acknowledge concealing part of their sales from tax authorities. Enterprises that are evading taxes are less likely to obtain an external audit. In addition, the data predict that corruption and tax evasion is more likely to occur when the principal owner is male rather than female. Moreover, findings show that the main effect of the separation of ownership on the likelihood of bribery is insignificant.

Explaining varieties of corruption in the Afghan Justice Sector

Judicial reform in Afghanistan is seriously undermined by systemic corruption that has resulted in low legitimacy of the state and weak rule of law. This article reviews the main shortcomings in the Afghan justice system with reference to 70 interviews conducted in Kabul. Building on legal pluralism and a political economic approach, the shortcomings and causes and consequences of corruption in the Afghan justice sector are highlighted. These range from low pay, resulting in bribery; criminal and political intrusion into the judiciary; non-adherence to meritocracy, with poorly educated judges and prosecutors; and low funding in the judicial sector resulting in weak case tracking and human rights abuses in the countryside. This is followed by sociological approaches: understanding corruption from a non-Western approach and emphasis on religion, morality and ethics in order to curb it.

The Impact and Consequences of Corruption on the Nigerian Society and Economy

There is no doubt that corruption has eaten deep into the fabric of the Nigerian society. Successive governments in the country since independence in 1960 had in recognition of the evil of corruption established programmes and agencies to deal with it. These include the War Against Indiscipline and Corruption (WAIC); Independent Corrupt Practices and other Related Offences Commission (ICPC); the Economic and Financial Crimes Commission (EFCC); etc. Despite the establishment of these agencies and targeted programmes, corruption has continued to ruin every aspect of the country’s national life with serious damages to her image before the international community. Corruption has not only become pervasive in Nigeria but it is more or less a way of life, much to the detriment of the Nigerian society and economy. The paper interrogates the nature of corruption and its implications for national development efforts in Nigeria. The paper concludes that without effectively dealing with corruption in a holistic manner, there can be no meaningful socio-economic and political development of the country. This is because in the opinion of the paper, corruption is evil, which is not reformable but must be removed in its entirety.Key words: Corruption, Impact, Consequences, Society, and Economy

Removing Impediments to Sustainable Economic Development: The Case of Corruption

This paper examines causes and consequences of corruption within the process of economic development. Drawing on experiences and insights accumulated during the post-war period and reflected in a growing body of academic research, the paper analyzes institutional mechanisms that sustain corruption and the impact of corruption on development. It argues that many forms of corruption stem from the distributional attributes of the state in its role as the economy's central agent of resource allocation. It also addresses the question of what can be done about corruption and discusses the role of economic policies in developing incentives and institutions to reduce its incidence.

Kenya's corruption problem: causes and consequences

The culture of corruption has grown roots in Kenyan society at large and become endemic. Institutions, which were designed for the regulation of the relationships between citizens and the State, are being used instead for the personal enrichment of public officials (politicians and bureaucrats) and other corrupt private agents (individuals, groups, and businesses). Corruption persists in Kenya primarily because there are people in power who benefit from it and the existing governance institutions lack both the will and capacity to stop them from doing so. This work takes a governance and development perspective to analytically examine the causes and consequences of corruption in Kenya. It identifies the key factors (such as absence of strong and effective democratic institutions, centralised power, lack of public accountability, and impunity) and synthesises and analyses available data, indicators, and other information in that regard.

Crime and Conflicts in Africa: Consequences of Corruption?

With earthshaking and jaw-breaking levels of corruption in the African continent, the question on the extent to which corruption influences crime still remains unanswered. This paper assesses the effect of corruption (corruption-control) in 38 African countries using updated data. We find that, crime is highly positively (negatively) correlated with corruption (corruption-control). The potential mitigation effect (by corruption-control) is higher than the corresponding positive effect of corruption, implying, corruption-control offsets crime emanating beyond the corruption mechanism (inter alia, other poor governance mechanisms). The relationship is statistically strong when controlling for the number of police officers, age dependency, per capital economic prosperity, level of education, government effectiveness and population density. Given that crime is proxied by the level of organized internal conflict, the findings also sustain the substantial role of corruption in the birth and propagation of conflicts within and across Africa. Policy implications are discussed.

A Formal Model of Arms Market with Cash-for-Favours

AbstractBoth corruption and market imperfections are important facets of modern arms markets. In the standard literature of arms market, production, procurement, sales (exports) and purchases (imports) of arms take place in the shadow of corruption. Corruption is an integral part of the environment of the arms trade that exerts an influence upon the outcome in the arms market. In our work, we make corruption as a choice variable of the powerful players in the global arms market and examine the equilibrium consequence of corruption that is strategically chosen by armament firms. We develop a simple duopoly to characterize a perfect Nash equilibrium of cash-for-favors and establish perplexing comparative static properties of this equilibrium. The primary intuition here is that cash-for-favors can have serious impacts on the equilibrium of an oligopoly through their effects on the incentives of and constraints on individual firms. We offer a model of endogenous corruption, to our understanding for the first time, to examine the global arms market in order to establish that the equilibrium outcome in the arms market cannot be fully captured by the standard results of oligopoly. Researchers have to extremely careful in applying the standard tools of oligopoly to the arms market as our results suggest that endogenous corruption can reverse most of the known results of oligopoly.

Corruption: Reasons & Remedy to Sustain Economic Development

The paper stresses the need to keep the issue of corruption squarely in view in the development agenda. It discusses the causes and consequences of corruption, especially in the context of a least developed country with considerable regulation and central direction. Lack of transparency, accountability and consistency, as well as institutional weaknesses such as in the legislative and judicial systems; provide fertile ground for growth of rent seeking activities in such a country. In addition to the rise of an underground economy and the high social costs associated with corruption, its adverse consequences on income distribution, consumption patterns, investment, and the government budget and on economic reforms are highlighted in the paper. The paper also touches upon the supply side of bribery and its international dimensions and presents some thoughts on how to address the corruption issue and to try and bring it under control.

Exploiting the Poor: Bureaucratic Corruption and Poverty in Africa

Summary While extant research has focused on the causes and consequences of corruption at the macro-level, less effort has been devoted to understanding the micro-foundation of corruption. We argue that poor people are more likely to be victims of corrupt behavior by street-level bureaucrats as the poor often rely heavily on services provided by governments. We test this proposition using micro-level survey data from the Afrobarometer . Multilevel regressions across 18 countries show that poor people are much more prone to experience having to pay bribes to government officials.

Corruption in Higher Education and Government Measures for its Prevention

The problem of corruption at universities in Kazakhstan and other CIS countries is considered in the article. The author tries to discover the problem of corruption as a social issue preventing state development and higher education system development. The author attempted to describe in detail the preconditions, causes and consequences of corruption in higher education. Specific examples of different corruption cases at Kazakhstan universities are provided.The problem of corruption existence at Kazakhstan universities really prevents university development and accrediting Kazakhstan universities by international organizations and accreditation agencies.The definitions of the term “corruption” provided by different authors are compared and analyzed in the article. The author also made an attempt to provide reasons for being higher education system free from corruption. Some techniques and measures to avoid corruption are offered.

Do High Levels of Economic and Political Freedom Cause Less Corruption?

A growing body of evidence documents numerous and deleterious economic and social consequences of corruption. These findings beg the question: How to reduce corruption? We exploit exogenous sources of variation in latitude, ethno linguistic fractionalization, settler mortality rates, legal origin and initial values of economic and political freedom as instrumental variables for economic freedom and political freedom. We document the existence of a negative, robust, statistically significant and economically consequential impact of economic and political freedom on corruption and both freedoms are complementary. However, “horse race” results suggest that economic freedom trumps political freedom in the effort to deter corruption.

Corruption in Ghana: Causes, Consequences and Cures

The paper stresses the need to keep the issue of corruption squarely in view in the development agenda. It discusses the causes and consequences of corruption, especially in the context of a least developed country with considerable regulation and central direction. Lack of transparency, accountability and consistency, as well as institutional weaknesses such as in the legislative and judicial systems; provide fertile ground for growth of rent seeking activities in such a country. In addition to the rise of an underground economy and the high social costs associated with corruption, its adverse consequences on income distribution, consumption patterns, investment, and the government budget and on economic reforms are highlighted in the paper. The paper also touches upon the supply side of bribery and its international dimensions and presents some thoughts on how to address the corruption issue and to try and bring it under control.