Corruption of Foreign Governments Essay

1214 Words 5 Pages
Corruption can be defined as "the misuse of entrusted power for personal

benefit". It can also be described as letting personal or family relationships influence

economic decision making, be it by private economic agents or by government officials.

Corruption is always kept secret and therefore individual behavior of corrupt agents is

almost impossible to observe systematically in real life. The objectives of government are

vital to the understanding of the diverse negative effects of corruption on the public

service. Corruption renders governments unable or unwilling to maximize the welfare of

the public. It distorts agents' decisions and limits the contractual space available to agents

and the government.
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General police deviance can include

brutality, discrimination, sexual harassment, intimidation, and illicit use of weapons.

However, it is not particularly obvious where brutality, discrimination, and misconduct

end and corruption begin. A corrupt principal creates allocation inefficiencies and cripples its credible

commitment to effective policies, and opens the door to opportunism. Because corruption

must be hidden from the public and is not enforced by courts it entails transaction costs,

which are larger than those from legal exchange. This suggests that corrupt contracts are

primarily relational contracts where legal exchange serves as a basis for sealing and

enforcing corrupt agreements. Legal exchange not only provides for corrupt

opportunities, but for the necessary enforcement mechanisms. Examples of such legal

exchange are long-term business exchange, belonging to the same firm or political party

or being embedded in social relationships. The latter may even comprise the engagement

in charitable institutions. Reform should not only focus on limiting opportunities for

corrupt behavior but also on impeding the enforcement of corrupt agreements. Police corruption is defined as the abuse of police authority for personal or organizational gain. This comes in many shapes and
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