The Causes And Effects Of Economic Corruption And The Economy

Of the world's most deceitful countries, Africa, with its underdeveloped growth and poverty in many regions, is considered the most corrupt. The two thirds of countries, that are measured most corrupt in the world, are located in sub-Saharan Africa. Millions of Africans today live below the poverty line because of the disease of corruption. The African continent will not be able to find a solution to corruption on condition that both government officials in the private and public sectors are dishonest. Due to the fact that Africa is the most corrupt continent on earth, the governments of African countries should properly fix this problematic

First, it is important to define what corruption is. The term, “corruption” covers a broad range of human actions,

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.

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

Corruption and money go hand in hand. Money is a motivating factor for corruption, and the transfer of money or other special benefits often finances corruption.

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.

African countries have been going through one of the worst recessions in our day in age. Some of the things that Africa lacks as a continent are food supply, water supply, shelter, a stable government to control these key aspects in each country, and many more to come in the future because of the daily issues Africa is facing because of corruption in their individual government as countries. Recent studies show that, over 70% of major corruption cases in Sub-Saharan Africa involve phantom firms, which is financial entities that are currently almost impossible to trace or track without improvements in regulatory oversight, resulting in a tax loss of about $52 billion.

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

The costs of corruption are not easy to measure, but certain estimates suggest that, “corruption in Brazil may eat up somewhere between 1.35% and 5% of GDP” (Power and Taylor, 2011). Nonetheless, it is not so much the economic outcome that one must worry about when speaking about corruption. Rather, it should be realized that corruption causes a steady decline in citizen’s trust towards political actors and the political system. In various countries of the global south, licenses, authorizations, and permits of different kinds have to be obtained in order to take part in different activities like opening shops, obtaining a driving license, travelling abroad and so on. For this to occur, government offices and officials have to be contacted in order to inspect or authorize such activities. This gives such government officials a monopoly of power, and many of them (especially in developing countries) abuse this power by not authorizing licenses/documents for months. Further, they extract bribes from the people who need such permits or authorizations (Tanzi, 1998). Clientelism, or a social order depending upon relations of patronage, has a long history in Latin America. It specifically refers to a system wherein politicians offer money, services, or jobs to citizens via party machine operatives, with the expectation being that these clients will engage in some form of political support in order to return the favor (Schaffer and Baker, 2015).

Kenya is one of the most corrupt countries in the world due to a long legacy of corrupt leaders according to the recent transparency international standings(145/176). It is so visible, that it is impossible for a citizen or even a visitor to deny its presence. Corruption is a problem that is engulfed everywhere around the globe, in some countries more than others and it was not until a few years ago that the international donor community recognized corruption as one of the main responsibilities for the failure of development in Africa .Corruption hinders economic development and gradually slows down the democratic process and stability within a political system. The money gained out from corruption does not trickle down to the people nor is it used to make any development, instead is it used for private gain and to fund luxurious living. Corruption in Africa can be seen as both systemic and generalized, systemic since it is more of a rule than an exception and generalized since it is not limited to just one sector. There are three types of corruption that are found in a society, but will only mention two of them. The first type of corruption is described as grand corruption: which is corruption acts done by the political elite. They use their powers to gain private themselves, it is known as the worst form of corruption as it’s responsible for destroying communities at large. The second type of corruption is bureaucratic corruption, also known as petty corruption. In this

Corruption is recognized as a contemporary problem in the international community currently. Corruption can take kinds of types that can include graft, bribery, embezzlement and extortion. For its influence, the United Nations international crime prevention center claimed that corruption has the threaten ability and negative impact on social, political and economic development and the value of morality, social stability and security of the world(Das, 2016). Corporate corruption is defined as any

In today’s society, many corrupt citizens who will prioritize wealth over basics like clean food, water, and air for the future. They go caring about their own life, and not caring about the next generation; causing problems, killing our planet, and sweeping it under the rug because they do not want to address the problem. Everyday citizens have choices on what they do each day, and these decisions are harming our planet at an aggressive rate. Decisions on whether or not recycling their plastic. These citizens are corrupt because they grew up in a society that bases happiness upon money. Sure, they have heard of the saying, “money can’t buy you happiness”, but these people will still work a desk job all of their life because they want more items money can buy. A mansion is a dream that these citizens have, something to work towards and obtain. If society would stop distracting these citizen with money, the world could be focused on a better goal, the future of our planet. Corrupt citizens are evil because they are allow deforestation of the rainforests, are polluting the environment, and are obsessed with money.

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”.

Corruption leads to the demoralizing aspects of frustration and apathy. Also it will raise the negative spread between the members of the community. Corruption also results in a lack of professionalism the loss of the value of work and a declining