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daksh007
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What is the Actual Meaning of Corruption? - Page 3 Empty Re: What is the Actual Meaning of Corruption?

Sat Jan 12, 2019 7:33 pm
an act of
'corruption' from sociological point of view, but it may not be so from the
legal point of view.
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meenu007
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Sat Jan 12, 2019 7:33 pm
Although disagreements abound, corruption is most frequently defined as the misuse of public power for personal gains. Corruption, unlike fraud and embezzlement, refers to decisions that politicians and public bureaucrats (public officials for ease of exposition) make based on authority delegated to them by the populace.
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daksh007
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Sat Jan 12, 2019 7:33 pm
corruption may also be so from the sociological view point. Thus, such
niceties may not be overlooked while defining the phenomenon of
corruption.
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meenu007
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Sat Jan 12, 2019 7:34 pm
When these decisions are motivated by personal gains rather than by the public’s interest, other than politicians favoring segments of the population they represent, this is considered corruption. One of the difficulties of identifying corruption is that these self-serving decisions can often be disguised as good public policy.
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daksh007
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Sat Jan 12, 2019 7:34 pm
The word 'corruption' means, according to Webesters as the act of
corrupting or state of being corrupt. Such meanings of the word
'corruption' as given in Webester's Dictionary have religious-historic
reasons.
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meenu007
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Sat Jan 12, 2019 7:34 pm
Corruption exists in two broad forms—although there are many variations within these two categories and often the two will be intertwined with each other. Administrative, or petty, corruption refers to acts of bribery, kickbacks, or grease money, in which public officials extract a payment for implementing an existing decision. In its purest form this type of corruption is an attempt to redistribute rents or profits associated with a decision.
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meenu007
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Sat Jan 12, 2019 7:34 pm
When officials accept a bribe for favoring a particular contractor for a public construction project, they are asking the contractor to share profits associated with the contract with them. The main consequence of such an act of corruption is the redistribution of income that in turn will have some influence on resource allocation.
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meenu007
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Sat Jan 12, 2019 7:34 pm
Political, or grand, corruption or “state capture” occurs when political leaders either allocate national budgets or introduce legislation to facilitate projects from which either they themselves or their close associates will benefit. In almost all cases of political corruption the public would not have made the same decision as the political elite if it were in a position to make that decision.
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meenu007
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Sat Jan 12, 2019 7:34 pm
The corrupt elite’s profits come either in the form of bribes or from direct stakes in the projects that benefit from the decisions. Examples of corrupt politicians accepting bribes exist in almost every country—industrialized or developing. Also, examples of dictators who have managed to enrich themselves while impoverishing their countries abound: Haiti under François Duvalier (1907-1971), Philippines under Ferdinand Edralin Marcos (1917-1989), Zaire under Mobutu Sese Seko (1930-1997), Nigeria under Kwame Nkrumah (1909-1972), and Uganda under Idi Amin (c. 1925-2003) are just some of the examples. Political corruption leads to the misallocation of a country’s economic resources while redistributing income within that country.
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meenu007
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Sat Jan 12, 2019 7:35 pm
Corruption is difficult to measure, but it exists in all countries. In countries where corruption is not endemic, corrupt acts are carried out under secrecy. In countries where corruption is widespread, corrupt incomes take so many forms that measurement becomes meaningless.
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meenu007
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Sat Jan 12, 2019 7:35 pm
The most consistent attempt to measure corruption has been carried out by Transparency International (TI), a Berlinbased nongovernmental organization (NGO). Every year TI surveys business people and experts, and based on their perceptions it provides a rating between 10 (no corruption) and 1 (most corrupt). Of the 158 countries ranked in 2005, Iceland, Finland, and New Zealand were the least corrupt and Turkmenistan, Bangladesh, and Chad were the most corrupt.
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meenu007
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Sat Jan 12, 2019 7:35 pm
To understand why corruption exists, it helps to examine why there is less corruption in some—usually industrial-ized—countries. One can start by recognizing that authority over public-sector budgets and regulatory frameworks comes with the potential for huge personal benefits. Assuming that only a small percentage of a population is pathologically honest, most public officials will be tempted to take advantage of their authority.
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meenu007
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Sat Jan 12, 2019 7:35 pm
Their gains, however, come at someone else’s cost. Therefore, those who may lose from corruption want to control and check the powers of public officials. These checks come in the form of well-developed legal, political, and social institutions within the society. As such, the existence or absence of corruption depends on the balance between the powers of public officials against the strengths of institutions and control mechanisms that empower the public.
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meenu007
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Sat Jan 12, 2019 7:35 pm
All countries have laws against corruption. Selection and retention of public officials, at least in democratic societies, will depend on the public officials demonstrating honest behavior. Democratic institutions that allow a fair and wide participation of the public in the selection of public officials create a barrier against the spread of corruption. Offending officials will be identified and punished by the judicial system or at least not reappointed to their positions.
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meenu007
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Sat Jan 12, 2019 7:36 pm
A free press accompanied by an independent and honest judiciary forms another barrier that prevents corruption. Institutions and a variety of organizations that represent specific interest groups in a given society will exert influence on public officials if corruption is likely to harm that society. In so far as politicians derive their authority and appointment from their constituencies, these institutions form another line of defense against corruption.
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meenu007
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Sat Jan 12, 2019 7:36 pm
Once in power, however, public officials will have means to render these control mechanisms less effective. A dictator usually succeeds in rendering them completely ineffective; hence, dictatorial regimes are often more corrupt than democratic ones. Democratic leaders are restricted by the strengths of the institutions in a society that constrains behavior of public officials.
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meenu007
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Sat Jan 12, 2019 7:36 pm
Thus, institutions that play an important role in controlling corruption include a free press, an independent judiciary, and a free and democratic political system that gives full voice to the populace in the political process. Research clearly establishes that the absence of corruption within countries correlates with the level of development of these institutions. It is noteworthy that ideology does not seem to play a role in the extent of corruption.
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meenu007
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Sat Jan 12, 2019 7:36 pm
Daniel Kaufmann divided countries into “leftist” and “non leftist” regimes (1998, p. 140). The correlation between the extent of corruption and the type of regime was zero.
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meenu007
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Sat Jan 12, 2019 7:36 pm
Corruption—which is an important component of what is now called governance—is extremely inimical to economic growth and development (Jain 2001). It leads to misallocation of resources, distorts labor markets, discourages investments, and alters income distribution. The myth that corruption helps markets by “greasing the wheels of commerce” has been proven false.
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meenu007
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Sat Jan 12, 2019 7:37 pm
While it is true that a bribe may speed up one transaction, it creates incentives for more and higher bribes in previously bribe-free activities. In a remarkable study of bribery, Robert Wade (1985) shows that once bribes are introduced, bureaucracies redirect their attention from providing services to the public to maximizing bureaucrats’ illicit incomes.
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meenu007
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Sat Jan 12, 2019 7:37 pm
While it is true that a bribe may speed up one transaction, it creates incentives for more and higher bribes in previously bribe-free activities. In a remarkable study of bribery, Robert Wade (1985) shows that once bribes are introduced, bureaucracies redirect their attention from providing services to the public to maximizing bureaucrats’ illicit incomes.
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meenu007
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Sat Jan 12, 2019 7:37 pm
The most damaging consequence of corruption may be in how it inhibits investment in the economy. Research clearly establishes that countries with high corruption have lower levels of investment and economic growth (World Bank 2001). Corruption, which usually exists in an environment of poor overall governance, makes it difficult for entrepreneurs to invest by increasing the cost of starting a business venture.
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meenu007
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Sat Jan 12, 2019 7:37 pm
After investments have been made, corruption creates uncertainty for entrepreneurs because the public officials have an option to extract bribes from the venture should it prove profitable. This option increases entrepreneurs’ risks and lowers their returns.
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meenu007
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Sat Jan 12, 2019 7:38 pm
Corruption also distorts the selection of public-sector projects. Small maintenance projects are more effective in terms of their output, but corrupt officials do not like to spend money on smaller projects because they may be carried out by a larger number of contractors, making it more difficult to extract bribes.
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meenu007
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Sat Jan 12, 2019 7:38 pm
Thus, corruption biases investment expenditures from high-output to low-output projects. Construction of “roads that go nowhere,” “bridges that no one crosses,” and unused shells of school buildings that abound in the developing world may have been motivated by bribes, not the needs of the society.
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