Effectively combating this corruption ensures that the money can be better directed towards a development which benefits the entire population, not just the most privileged. Experts believe that the way decisions are made in the IMF is also one of the reasons for its failures. In the current system the votes and decisions are taken based on shares. USA holds power of veto with a share of more than 17%. The disproportion between the countries of the North and South are very large.
Over centuries, wealth has become one of the main factors of controlling and influencing society. Individuals are continually viewing money as the root of all evil, but this is in fact inaccurate. Money can also be beneficial, however, it relies on the way one decides how to utilize it. Though with society viewing money as the key to the road of success, it has often guided people to fall into the trap of greed. Wealth can elicit the temptation and overpass greediness as well as overturn circumstances in order to become wealthier.
Masucci highlight the Rational Choice theory as it explains that the reason individuals participate in criminal activities for economic gains. The mounting number of participants in drug trafficking activities despite of the risks is because profits is the driving force of criminal activities. The idea of generating large amounts of profits is tantalizing for individuals to take part in producing and distributing illicit drugs to consumers. As soon as they see the benefits as higher than costs, they would be motivated to run it, especially since the drug industry produces large profits and for people with low incomes or without jobs they are ‘compulsorily’ pulled to the
Major role played by personal qualities, strong leaders are needed to develop and push forward the reforms. Managers need to understand where there is corruption, as well as what measures the government can influence it. To sum up, the main corruption evident in the transition countries. Problems of corruption has always been and will be. However, there are many countries with very low levels of corruption.
Even though government already has a policy regarding corruption and also the sanction to whom who did the corruption activity seems the actor is not afraid even worst. Many institution such Foreign Corrupt Practices Act (FCPA,
Salary increase as an effective method to combat petty corruption of government officials Corruption is an issue that get major concern on almost all governments. According to World Bank (1997), corruption is “the abuse of public office for private gain”. Many countries, especially developing ones, are struggling to reduce corruption in government bureaucrats. Corruption among government officials is widespread from top to bottom level. It do not only happen on top level, where corruption is in form of political maneuver and policy making for profit gain, but also arise in middle to low level civil servants.
The recent decrease in investment by foreign entities during 2011 when major scams have been unearthed clearly shows the negative impact of corruption and fraud. Indian government should take up immediate steps to improve governance and punish the offenders within a reasonable time frame. These crimes mostly occur because of the unethical practices more often. Private sector and the individuals who are capable of such crimes should be educated so that such crimes can be reduced. Public also should be made aware of such crimes, so that they don’t fall prey to such criminals which can reduce the crime to some extent.
Throughout the decades, corporate scandals involving fraud or embezzlement have been reported periodically over the world. As far as managerial fraud is concerned, there has been several cases whereby top management such as directors, high level executives or managers in different industries engaged in unethical activities for personal financial benefits. Ironically, these so-called white-collar crimes were often committed by highly educated people with certain level of reputation and who are supposed to have much knowledge on ethics and professionalism. But why would these people allow themselves to take such risk of destroying their reputation and bright future? Is making fast money a huge temptation that muddled the thinking of these managers?
Senior (2006) argues that corruption occurs when a corruptor covertly gives a favour to a corruptee or to a nominee to influence action(s) that benefit the corruptor or a nominee, and for which the corruptee has authority. The major forms of corruption include bribery, extortion, kickbacks, embezzlement, theft, fraud, and conflicts of interest, favoritism, and nepotism Causes of Corruption Understanding the root cause of corruption is a step towards tackling the issue. Issues such as greed, lack of rule of law, weak judicial system, little or no
Moreover, tourism development can cause economical pressure to the government. The developers might want to develop infrastructures such as roads, airports and lodging system but at the same time, it is a challenge for the government due to huge amount of money for the taxpayers. In addition, some problems might come up because of seasonal tourism. Since seasonal tourism is not long terms, it can create unemployment during the off seasons which affects economically. Lastly, the countries which are directly focusing on tourism for the national economy have a huge risk of economic disaster.