Cost Of Corruption Research Paper

Table of contents

Abstract 3

1. Introduction 3

2. Factors that affect the level of corruption 4 2.1 What is Corruption 4 2.2 Limited Progress and Bad administration 4 2.3 Lack of moral criteria and Organized crime 4

3. Costs of corruption 5

3.1. In Economy 5

3.2. Social aspects and public capital 5

3.3. In politics 6

4. Conclusion 6

5. Recommendations 6

6. Bibliography 7

Abstract

This report examines empirically the reasons and costs of corruption using data for more than six countries. First it examines the causes of corruption focusing on the effects of checks and balances and electoral systems on corruption. Second, it has a deep look at the consequences of corruption on public spending in health and education

2.1 What is Corruption?

A general definition of corruption is the use of a public office for the benefit own. This includes bribery and extortion, in which necessarily involved at least two parties, and others criminal acts that a public official can commit on its own, like fraud and the misappropriation of funds. The appropriation of public funds for private use and the misappropriation of public funds by politicians and senior officials assume a damage so clear and direct to the economic development of a country that is not. It is necessary to analyse its impact in detail. 2.2 Limited Progress and Bad administration

Most of the personnel in the government are waged low salaries and earnings. Therefore some workers revert to corruption for extra economic profits. Corruption is nearly common in many developing countries, and arises mostly when fortune is unequally distributed and power is much unified. Social inequality contributes to growing poverty and increased corruption. Besides, perceptions of corruption might actually increase even when corruption fails, since more is being considered and exposed. As shown in the following graph, it is observed the case of Latin

5. Recommendations

Public corruption tends to be much lower in developed countries and, especially, in those that have three characteristics: a greater number of years of democratic experience, a greater level of political alternation at different levels of government and a more efficient judicial system.

In short, corruption is a symptom of economic, political and institutional problems fundamental Fight with effectiveness corruption means addressing those basic causes. Attention must be paid priority to prevention, that is, to the reform of economic policies, institutions and incentives. Below in Figure 2, there are some of the important policy changes that will simply reduce the Corruption opportunities in any