How does corruption affect development and development management?
1. INTRODUCTION
Generally speaking, a transparent, fair and clean environment is one of the important guarantee of a rapid economic development. Corruption usually plays a negative role in social and economic development field (World Bank, 2000). Mauro (1996, 1998), Monte and Papagni (2007), Tanzi (1998) believe that corruption will hurt development. However, there are also some counter examples. After the second World War, for instance, some authoritarian countries began a quick development , but in this process, corruption could always be found, which even synchronously grew. This paper will focus on what is the relationship between corruption and development and how corruption could impact on development and development management. First, it will define what corruption means, as well as its categories. Second, the relationship between corruption and development will be discussed through a series different arguments. Third, it will focus on the case of China, where corruption and development currently coexist.
2. THE DEFINITION AND CATEGORIES OF CORRUPTION
Before discussing the above questions, it is necessary to clear the connotation and classification of corruption. Krueger (1974) studies in the field of corruption. She firstly puts forward the concept of economic rent-seeking, which theory is used to explain the widespread in various types of corruption in different countries. Thereafter, Ackerman (1978) tries to analyze the economics meaning of corruption through principal-agent theory. Ackerman thinks that if a third party tries to bribe, which means to pay a sum of money to the agent illegally in order to affect the decisions of the...
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By the mid 20th century, the scale and prominence of corruption had increased dramatically, due to the widespread transition to vast urban cities and industrialized systems. The greed and desperation that resulted from the shift towards industrialism accelerated the growth of corruption in politics. Although the shift to industry was a necessary stepping stone in the development of the modern society existing today, it was accompanied by various consequences to American society and facilitated the corruption of government officials. The exploitation of fellow
Probable Causes of Corruption – Different things motivate different people. Some can motivate people to perform beyond expectations and some can lead astray from moral and ethical values.
Corruption is an individual and institutional process where there is a gain by a public official from a briber and in return receives a service. Between the gain and the service, there is an improper connection, (Thompson p.28). The two major categories of bribery is individual and institutional corruption. Receiving personal goods for the pursuit of one’s own benefit is personal fraud. An example of individual distortion is the financial scandal involving David Durenberger. Organizational corruption involves “receiving goods that are useable primarily in the political process and are necessary for doing a job or are essential by-products of doing it,” (Thompson p.30). An instance of institutional fraud is the Keating Five case. There are also times where there is a mixture of both individual and organizational corruption in a scandal. An example of this diverse combination is James C. Wright Jr. actions while he was the Speaker of the House.
Corruption is something that is motivated by greed and fraud. It’s a very threatening personality that controls and destroys people’s lives and makes them the kind of person other people don’t want to associate with.
Some people may think that money doesn't corrupt people and that corruption is something that can be controlled by human choice, but money affected the social acceptance of people, it corrupted the thought process of the upper percentage of people, the wealthy people that don't accept the less wealthy because of a social barrier they feel can't be passed, the younger brother that gets rich and feels like his whole family is trying to take his money, the greed that comes along with wealth causes corruption.
Bribery occurs when money, services, goods, information, or anything else of value is offered with intent to influence a person’s actions, decisions, or opinions of the accuser. Charges can be brought against an individual, whether they offered the bribe or accept it. Bribery and public corruption cases frequently make headlines new stories daily. Bribes can take the forms of gifts or payments of money in exchange for favorable treatment like awards of government contracts (Mince-Didler, n.d.). Government officials tend to gain a huge incentive with bribery while serving their term. Other forms of bribes may include privileges, services, various goods, property and favors. Bribes are always intended to influence or alter the actions of individuals with political and public corruption (Mince-Didler, n.d.).
Bribery poses difficulties on moral grounds because it is incompatible with the principal of human equality and the fundamental right for individuals to be treated with equal respect and concern. For an institution to adhere to this principle, they must operate with fairness and impartiality: nobody should have access to influence that is not accessible to all. Bribery operates as part of a mechanism by which influence is only available ...
Corruption consists in the illegitimate agreement between a corruptor and a corrupted, in which they abuse of their public power in order to obtain personal benefit. Bribery and corruption is something that has been going on for years. According to Allen, “officials perceive themselves as immune to any penalties for demanding and receiving bribes” which she states that it is one of the main reasons for bribery and corruption in underdeveloped countries. According to Transparency International, an organization committed exclusively to end corruption, three of the most corrupt countries in the world are Somalia, North Korea and Afghanistan. This does not mean that corruption is only seen in underdeveloped countries. In international business, corporate employees often find themselves dealing with corruptors in foreign countries and, in most cases, they will give in.
The question of why bribery is illegal in the first place is fundamental to the discussion of its practice and legality. Foremost, it can be considered wrong in terms of normative ethics, both deontologically and teleologically. Teleological ethics holds that the outcome of an action is the determining factor in whether or not it is moral. Should bribery create economic distortions resulting in suboptimal development in the aggregate, it would be economically beneficial in the long run to criminalise bribery. Therefore, application of a consequentialist view asserts that bribery, in being detrimental to the economy, i...
Political instability and corruption is a major impact on growth. The rule of law and appropriate enforcement is needed to create an established system of honesty and loyalty in society. Corruption is people acting in an official capacity of trust and responsibility misusing their position for private gain. When there is this sense of corruption many things are affected. Corruption discourages investment due to lack of business ethics.
The typical example of bribery in countries, where it is seems to be normal, is paying for vote on elections. Political party in this situation offers some amount of money to citizens in exchange of their vote for this party. In this case, self-interest of people to a new government is distorted, because some destitute are rather to receive gift and vote for politician, who participates in
Corruption is one of the major issues nowadays and is a clear example and consequence of the actual society and culture. A manifestation of this global phenomenon is the construction industry where corruption is really widespread and interconnected with other industries.
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In this essay,we have seen evidence that corruption leads to instability in the economy,increases the transactional cost,decreases efficiency, hinders the growth of a healthy marketplace and harms the social and economic development.Therefore,it’s fair to say that Corruption has had a serious effect on the Indian Economy.If left unchecked,India is bound to lose FDI investments as investors will lose trust in the economy. “Lost opportunities caused by corruption in regards to growth,jobs and investment; India has lost up to $45-50 billion a year”(Singh 2010).