How Corruption Has Proven Detrimental Effect On Business And Economic Growth

Kleptocracy is defined as a state controlled to benefit an individual or small group who use their power to gain “a large fraction of society’s resources” to use for themselves. Kleptocracy “obstruct[s] development” of countries because the money taxpayers entrust to further develop their country through projects such as schools or infrastructure, becomes diverted to certain people for their own personal gain. Daron Acemoglu, Thierry Verdier, and James A. Robinson, writers for the Journal of the European Economic Association, established that kleptocracy runs rampant in “many developing countries.” As a result of this corruption, countries suffer “highly inefficient economic policies” and “expropriated the wealth of their citizens.”

I Think corruption starts within organizations is when There are no authority checks and balances that effects the mindset and integrity of The employees who are in high management positions and also working within the any department of a government sector or business. With the economy growing in many states corruption decreases because jobs are able to pay people well and not below what the job position requires. Many factors play when it comes to corruption because it starts from home so a family or person can live well and a major factor can be the strength of the state presidency office if, the presidency for the state is not strong and showing good change to help the state in bad times people start to lose motivation and practices that things will get better and decide to take things in their own hands as for corruption.

Throughout human history, there has been corruption all over the world and of course different types as well, no doubt that each country has some form of corruption but it is at its worst in Latin America. This dreadful act is at its time high and it's not going down anytime soon, most of these Latin American countries lack of democracy, but instead have a dictator ruler. Corruption among official is abuse of power for their own self gain. According to Americas Market Intelligence “Latin American countries were characterized by having weak democratic institutions and authoritative governments, the perfect combination for the spread of corruption” they also mention the adverse effect corruption has on these countries, the high levels of corruption experience lower acceptance of established institutions, defaulted court system that cause a political instability,lower quality of public infrastructure and expenditures on education and health.There website also mentions that there is a direct correlation between corruption growth of the informal economy and the spread of illicit activity in the form of organized crime and illegal cartels.

Corruption can take many forms and can be found in many countries, but mainly in the emerging ones. The main form of corruption is the bribery in the form of payments demanded by the government or ministry officials in exchange for a favor (granting a service, awarding a business).Corruption affects all the businesses that interfere with the government, but studies have shown that certain industries are more exposed to it. These industries are construction, airline manufacturing, power plants, and oil and gas production.

India’s domestic business has seen high levels of corruption; more commonly the fraudulent behaviours and bribery of government officials and civil servants. This creates an unlevel playing field between domestic business and foreign business. Evidently this seemingly small issue of corruption could potentially tarnish India’s position as favoured destination of foreign investment (Mendiolaza, 2012).

How would one “fix” the United States of America? Quite obviously, the issues and corruptions within America cannot simply be fixed by a single solution. The best answer to a question of this capacity is an answer which targets pressing issues individually; perhaps, addressing ways to improve America given its current state if government and society. In order to improve America, reforms to campaign contribution and lobbyist need to be made which will result in refinement in the overall health of the county.

growth. Corruption reduces the efficiencies of the operations of the market economy and a loss

South American governments have always been somewhat corrupt. However, recent public abuse of resources for private gain -- corruption -- has created a disaster in Brazil, and it seems everyone in power is connected in one way or another. During the past fourteen years, construction company executives (among others) colluded to overcharge Petrobras, a state-owned entity, for government contracts, and Petrobras executives looked the other way in exchange for bribes. Petrobras executives then bribed government officials to keep them quiet. (Beauchamp). No one knew about these deals until oil prices unexpectedly dropped, creating massive debt and exposing the deficit the corruption created. The scandal has effectively strained the government's

The corruptin is the abusive and inefficient use of resources by trusted powers for private gain. Corruption is not committed to the rule of law, justice, human rights and the integrity of public service, and it hurts every one who's life, livelihood, or happiness depends on the integrity of people in a position of authority.Some times it's devastating impact is more visible . The governance ,transparency ,and fighting corruption is so important to sustaine economic growth.

Corruption has been seen as a major obstacle of rapid economic growth and development. It is a complex phenomenon whose roots lay in political and bureaucratic institutions and affects the economic growth of different countries. It makes the governments intervene where they do not need to, and it weakens the ability of the government to enact and implement policies in areas in which government intervention is needed. Over the years, the dispute of the economic consequences of corruption on economic growth has been a topic of analysis. The analysis is focused on the effect of corruption on economic growth. Several studies have generally found a negative correlation between corruption, economic growth, inequality, governance, income distribution and business environment. At the same time also some positive correlation with economic growth has been found to exist.

It would be convenient to start this research paper by stating that corruption is a challenge mainly for businesses in developing countries and that it is unrelated to the current affliction of the economy in the United States. It would also be convenient to claim corruption has declined in America as a result of awareness raising campaigns and the numerous anti-corruption laws. But none of those aforementioned statements would be true. Corruption is not the exception, but rather the rule in today’s business practices. In 2004, Daniel Kaufmann, a senior fellow at Brookings Institution and former director at the World Bank, calculated an index of "legally corrupt" manifestations which is defined as the extent of undue influence

Ahmad N. (2002). Corruption and Government Regulations : An Empirical Analysis. The Bangladesh Development Studies , Vol. 28, No. 4 pp. 29-51.

While corruption is said to generate inefficiency and retard growth in a country (Ackerman, 1997), China manages to deliver astronomical economic growth amidst rampant corruption (Li, Peng, 2001). To explain China’s puzzle, the essay first focuses on the causes of corruption and why it has yet to be eradicated, and then analyzes its economic impact in the short and long run.

The American Dream is characterized by the ideals of liberty, opportunity, and contentment. When an individual thinks of achieving the American Dream, they only see the light at the end of the tunnel and not the struggles that come with it. In the political fiction novel, The Jungle, Upton Sinclair portrays the effects of corruption and capitalism on the world. Sinclair does so by showing how depraved the capitalist government can be and how tremendously this affects the lives of the innocent. Three Lithuanian Immigrants by the names of Jurgis Rudkas, Teta Elzbieta Lukoszaite, and Ona Lukoszaite, migrate with their relatives to Chicago in hopes of living a poverty free life. It is common for immigrants who migrate to the United States to

Corruption is a complex political, social, and economic anomaly that negatively affects developing and developed countries. It weakens democratic institutions, holds economic development, widening the rich-poor gap and certainly leads to governmental instability. The World Bank definition of corruption states that “…the abuse of public office for private gain”.