The Link Between Corruption and Poverty : Lessons from Kenya Case Studies

Someone who is abusing the power that is given to him or her defines corruption, however, the word in its self is more than a simple idea; it is an intricate network. Since people’s views about ethical and moral behavior affect the way corruption is examined, the word has a slightly different meaning to each person. Additionally, misconduct across various societies is viewed differently due to social and cultural borders. The criminal justice system has had many instances where corruption had affected the outcome of a case and has inserted itself into the legal process.

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

Thus, corruption proposes that since the government is spending money away from programs that could benefits more of the lower income individuals. For examples, the government couldn’t provide public goods like education and health that could help the low income individuals because of the tax system. Yet, the higher income individuals have access to resources that the lower incomes individual don’t have to evade taxes by bribing government officials to lean on their side known as lobbying (Dincer and Gunlap). This research shows that the higher income individuals have a better chance to bribe governments causing the gap in income inequality in the economy because they have the resources to do it.

International Monetary Fund. 1998. Does Corruption Affect Income Inequality And Poverty?. [ONLINE] Available at: https://www.imf.org/external/pubs/ft/wp/wp9876.pdf. [Accessed 4 March 2017].

This wide definition of corruption does not cover any corrupt activities committed in a private entity or fund. This does not however imply that corruption only occurs in the public sector. Instead the network of corruption extends into executive, judiciary, legislative, civil-service, private sector down to the village tycoon and villager who gives gifts to

All throughout history one thing that has consistently stayed prominent throughout the world is political corruption. Political corruption can be surveyed as when a ranking government official use their power to make illegitimate gains in their private life. However, to define political corruption would be an illicit act done by an elected official that institutes political corruption if the act is unswervingly correlated to their authorized responsibilities, which is also done beneath the color of law or encompasses trading in influence. Political corruption doesn’t always happen, but it has had a pattern throughout history and is the biggest problem in the world at any given time.

Political corruption has existed throughout the ages. It believed to be most prominent in positions of power, because of the role money plays in getting people power. However, over the centuries, corruption has changed so much so as to not match a particular definition of corruption, perpetually growing deceptively harder to find (Ebbe).

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”.

In this essay, I will present an argument against theories that propose that corruption may be beneficial to economic growth by presenting theoretical and empirical evidence that suggest otherwise. I will also discuss policies that will prove effective in eliminating corruption in developing countries.

As early as 1979, corruption became embedded in the political culture of Nigeria as well as in the visible and the black market economies. All aspects of Nigerian society have been affected by corruption including educational institutions and religious organizations. The various Nigerian heads of state have made some effort to fight corruption but they themselves are the product of a system that deals in patronage, pay-offs and under-the-table dealing. Some commentators wonder whether the efforts to fight corruption are sincere and perhaps politicians are giving lip service to fighting corruption as a worthwhile endeavor but in reality, these same politicians do not believe it is a current priority. (Campbell, 2011)

There are many unsolved problem in Tanzania , but the issue of upsurge of corruption is troubling. The notion

2.2 Limitation to grand corruption One of the most famous typologies of corruption analysed in anti-corruption research is that of grand18 and petty corruption, although no international or national legal instruments provides expressly for this distinction. Thus, there is no legal definition for the term „grand corruption‟, with the effect that the concept and its prerequisites remain controversial.19 2.2.1 Qualitative element: powerful high-level authority Originally,20 the level of authority where corruption takes place has exclusively determined the distinction between grand and petty corruption. Whilst grand corruption takes place at the policy formulation end of politics, thus at the highest levels of political authority, petty corruption, also labelled as bureaucratic or administrative corruption, occurs in the public administration, at the implementation end of politics. For instance, payments to mid- and low-level government officials, such as police or immigration officers, demanding bribes constitute petty corruption. Beyond controversy, high-level authorities encompass prominent figures such as heads of States, heads of governments and ministers. However, the precise scope of high-level authority remains subject to debate.21 2.2.2 Quantitative element: large-scale corruption Increasingly, authors focus also on quantitative aspects to draw a line between grand and petty corruption.22 Typically, grand corruption is committed on a large scale and involves 18 The term „grand corruption‟ was first used by Moody-Stuart in The Good Business Guide to Bribery (TI 1994). He defined it as „the misuse of public power by heads of State, ministers, and top officials for private pecuniary profit.‟; Jayawickrama N „Corruption - A Violation of Human Rights?‟ available at http://resources.transparency.bg/download.html?id=219 (accessed 26 October 2013). 19 On the differentiation between grand and petty corruption, see Mashali B „Analyzing the relationship between perceived grand corruption and petty corruption in developing countries: case study of Iran‟ (2012) 78 International Review of Administrative Sciences 777 et seq. 20 Moody-Stuart (note 18) based his concept merely on the hierarchy of the perpetrator

Corruption as a norm has always existed in different forms, and is not determined by politics or geography. It exists in the rich and poor countries alike, it genuinely involves both individual States and international organizations and its costs are borne by its citizens. It affects the proper running of governments, distorts the correct functioning of economic and political institutions and hampers transparency; it exploits the human person for selfish interests, renders respect for rules obsolete and is a manifestation of structural sin. In our own locality in Kenya, citizens will complain about corruption in the high offices but will comfortably cheat each other in the market place. Public transport hikes rates at will without regard to the consequences on the most vulnerable. Big decisions affecting the citizenry are made at coffee tables in hotel lounges where “lobbying” means financial and political inducement. For every special interest bill that makes its way into parliament, members of Parliament seek to be sensitized in terribly expensive seaside resorts.

Firstly, it challenges the state capacity in ensuring equality among the whole society. In most cases of corruption, wealth is concentrated in the hands of a minority of population as money and properties go to the pockets of those who have power and position. Vice versa, good positions and promotions are given to those who have money instead of genuine ability. The burden of corruption falls on the poor since they are not able to afford the bribes to get good education, health care and other services (Myint 2000). Secondly, corruption, by creating inequality within the society also reduces the legitimacy of the government in the eyes of its citizens. A government which is seriously corrupted is hardly able to implement laws and policies efficiently. Moreover, the capacity of the state to invest in national projects is also diminished because of serious losses of revenues caused by corruption. Businesses and companies in Vietnam pay bribes to get reduction of taxes, fees, dues, custom duties and public utility charges such as for water and electricity (Myint, 49). Thus, in direct or indirect ways, corruption is still a great challenge to the state capacity of Vietnam that both the government and citizens are for years trying to find a resolution.

The problem of this study is to explore the effects of corruption on the economic growth in Kenya. Corruption cases reported to KACC increased by 16 % from 3637 in 2,008 to 4473 in 2009 (economic survey 2010). Corruption affects both the nation and the individual. At the national level, corruption has led to poor economic performance. This has resulted in: increased taxation burdens on Kenyans; unplanned, misdirected expenditure on projects