Essay On Causes Of Corruption

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Causes of corruption According to Treisman (2000) Corruption can be traced to colonial heritage and legal systems. According to him, countries with British colonial heritage were less corrupt compared to other metropolole like the French Portuguese and Spanish. Colonial Heritage and Legal Systems. This is because the British very procedural when it came taws. Procedures, to them, are not merely procedures, but sacred rituals” (Eckstein 1966, p.265). On the other hand other Metropole or cultures, restore social orders not so much going according to procedures. Religion too is one of the causes of corruption. Countries who had higher protestant were said to have a lower level of corruption in 1980. Protestants do not tolerate unfairness and wickedness and thus to try to cast anything that they believe is devilish. Another cause of corruptions is the type of system the country is running on; according to Treisman (2000) a democratic country is less corrupt compared to others. When a country depends on the exportation …show more content…

When corruption is chronic in a country, it slows down foreign investment because investors do not feel safe investing in a country where the rights of the private sectors are not being exercised. In a study carried by Hope & Chikulo (2000), it was explained how corruption diminishes investment using the corruption perception index. According to this two authors, when there is a two fold increase in the level of corruption in a country, it leads to an increase in the marginal tax of the country by 20 percent and a 1 percent increase in the marginal tax rate reduces Foreign Direct investment by about 5 percent. This explains why Africa has the lowest Foreign Direct investment rate in the world (Hope & Chikulo, 2000). This puts government in a critical situation because they are no more able to produce the basic services or enforce the rights of its

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