Since ‘‘Aid is an essential source of funding for Nauru’s development’’ (Anon., 2014) .Corruption and regional perceptions of corruption in Nauru has been damaging to the country’s reputation and has created obstacles to local and foreign direct investment, economic growth and will eventually mislead the development and upliftment of the people. Public money is for government services and projects. However, corruption and bad management consume into the nation’s wealth, directing money away from projects and the very people most dependent on government for support. Countless studies around the world (Mauro (1995), Tanzi and Dawoodi (1997), Ehrlich and Lui (1999)…) show how corruption can disturb investment, restrict trade, reduce economic growth and affect government expenditure. There are also studies that show the relationship between corruption in certain countries to increasing levels of poverty and income inequality.
(Coronel, 2004) said that corruption worsens income equity and poverty where instead of helping the poor and the needy, the government or the governmental institutions to be specific seek to largely contribute to services which is not even used and is not that relevant or is used by the people. Corruption also is said to damage the legitimacy and democracy of the government where citizens become suspicious towards the intentions of the authority. As (Johnston, 1997) stated, corruption begets bad politics, and bad politics begets further corruption; where politics and corruption as viewed nowadays are intertwined. Corruption is said to endanger public order and safety, where the laws are being bent and the people are not regulating the forces of the government which leads to massive riots and slow decline of governmental
WHY STUDY POLITICS In this essay, I will argue that the study of Politics as a critical and theoretical social science facilitates the enlightenment of controversial everyday issues through the appeal to pondering and methodical reasoning. Particularly, I will do this by demonstrating that corruption negatively affects the core fundaments of societies. I will begin with assessing that the mentioned phenomenon undermines the economic development of those countries led by corrupt governments. Next, I will illustrate that corruption damages the accountability and trustworthiness of the politicians themselves and hence increases the gap between citizens and their leaders. Then I will present the debated counterargument for which democracies can
As for Fraud, an accurate description would be defined as criminal deception intended to gain money or personal advantage. It is the unlawful and intentional making of a misrepresentation. Retrospectively corruption and fraud events are both extremely criminal to the society we live in South Africa. Corruption and Fraud both have connotations to negative characteristics such as criminal, illegal, dishonest, unlawful, unfaithful, and immoral. This is a serious allegation with growth rates with businesses and companies that work with people that have an incorrect mindset relating to corruption and fraud.
Micro – level crimes explain the reasons in individual level. Strain theory emphasizes the presence in person’s life negative aspects and stimuli that cause anger. In this case, people commit the white collar crimes due to the inability to achieve their goals and the fear of losing social status. Additionally, routine activities theory explains why corporate people commit such kind of crimes. According to this theory, three conditions conducive the realization of the crime, including “a target, a motivated offender, and lack of capable Guardians” (Lugo).
Taxing polluters: There are various ways to tax polluters and the most preferred way is the Pigovian tax. Pigovian tax is imposed usually on a negative externality to correct a market failure and generate revenue for the government. By creating a Pigovian tax, government is creating a cost equal to what the price would be if a market for pollution existed. Fullerton. D, Hong.
Corruption is a universal curse around the world and all nations suffer to some degree from the devastating effects of corruption. Corruption impedes economic development by creating inefficiencies that significantly reduce a country’s welfare. There are various definitions regarding corruption ,the most frequently used by social scientist is Nye’s, that corruption is: “…behavior which deviates from the normal duties of a public role because of private-regarding (family, close private clique), financial or status gains; or violates rules against the exercise of certain types of private-regarding influence. This includes such behavior as bribery, nepotism patronage, fraud, embezzlement.” The Oxford Advanced Learner’s Dictionary, (2000) define the Corruption as: (a) dishonest or illegal behavior, especially of people in authority (b) the act or effect of making somebody change from moral to immoral standards of behavior. According to this definition, the corruption includes three important elements, morality, behavior, and authority [Seldadyo and Haan, 2006].
Corruption emerges when bureaucrats control state assets to produce public services and goods. The illicit behaviour of bureaucrats arises either from supplying the government with a lower quality commodities at the same cost as those available in private markets, obtaining similar goods at a higher cost, or both. Officials and private actors consent to benefit by hiding information from the citizens, even if the officials” behaviour is deleterious to the prosperity of the society. Similarly, Mo (2001) estimated the relationship between economic growth and corruption by using the corruption perception index of Transparency
On another hand, the officer might get any form of return from businessmen as the reward. Those exchange trading usually will happen in those country that have poor laws and regulations enforcement. Misuse of the political powers will lead to others serious issues like money laundering or others financial criminal. Those activity will give a large impact to the economic development due to imbalance of wealth and inequality in social economic. 2.1.2 Administrative Corruption Administrative corruption is the abuse of roles and powers of an organization officer or government department officer.
For instance, in several tiny places like registration offices, police stations, state licensing boards, and lots of alternative non-public and government sectors. 2. Grand Corruption: Grand corruption is outlined as corruption occurring at the very best levels of state during a manner that needs important subversion of the political, legal and economic systems. Such corruption is usually found in countries with authoritarian or dictatorial governments however additionally in those while not adequate policing of corruption. The government system in several countries is split into the legislative, govt and judiciary branches in a shot to produce freelance services that ar less subject to grand corruption thanks to their independence from each