Kind of corruption
categories of corruption
Causes of corruption
Effects of corruption
Impacts of corruption
Corruption is a form of dishonest or unethical conduct by
a person entrusted with a position of authority, often to
acquire personal benefit.
Corruption may include many activities include many
activities including bribery and embezzlement ,though it
may also involves practices that are legal in many country.
Government or political corruption occurs when an office
holder or other government employee act in an official
capacity for personal gain.
corruption has no significant effect on economic growth
in democracies , while non-democracies suffer significant
economic harm from corruption .
corruption produces policy outcomes closer to these
preferred by the rich than those favored by the median
The misuse of entrusted power for private gain.
Self generating and involves only perpetrator.
Compulsive in nature and victim pay bribe in self defense.
This is compensation in exchange for service.
for future reward and no direct favor in present.
No direct transfer of money just preferential treatment to relatives and friends.
It support the existing corrupt system.
only a single person or
official is involved in
practicing bribing . This
type of corruption seen in
the government office and
A group of people work as
until to practice bribing .
According to a 2017 survey study , the following factors
have been attributed as cause of corruption.
Higher level of bureaucracy and inefficient administrative
Low level of democracy , weak civil participation and low
Low press freedom.
Low economic freedom.
Large ethnic division and high levels of in-group favoritism
Large government size.
Low level of government decentralization.
Low level of market and political competition.
Weak poverty rights.
Low level of education.
Low internet access.
Contagion from corrupt neighboring countries .
We can summarize the consequences of corruption as
1. Lower investment , including foreign direct investment .
2. Reduced economic growth.
3. A shift in the composition of government spending from
more productive to less productive activities.
4. Greater inequality and high incidence of poverty.
5. Reducing the efficiency of aid.
6. Exposing the country of current crises.
Impact on economy
Impact on society
Impact as a hidden tax
Impact in the allocation on public spending
Bribery raises transaction costs and uncertainty in an
economy (soto10,2000). Diverts talent to rent-seeking
activities and distorts sectral priorities and technological
Available data refute the argument of bribery as an
accelerator to demonstrate a positive relation between
the extent of bribery and time spent negotiating business
managers involved with public officials . The corruption
distorts incentives which operates the private sector by
reducing economic efficiency.
To a varying degree, corruption exists in almost all
countries .however ,the degree to which it impacts the
common people lives and increases poverty is directly
proportional to the level of this scourge and how
widespread it is in society.
A countries or provinces development depends on how
much of the states resources are lost to this ugly practice.
A recent world bank report list corruption and lack of
transparency as the two core reasons that hamper
pakistanis drive for development.
Economic analysis is
common to find that
equate corruption to tax
although both taxes and
corruption impose higher
costs to procedures , the
collection of the latter is
private and therefore the
potential use of these
resources is lost socially
It is appreciated that
network of kickbacks in
public works , or the
execution of expenditure.
State (whatever this state,
national , provincial or
municipal), creates a
distortion of public
We can infer that corruption is not only generated in the
public sector but in the private sector there are cases f
corruption , such as corporate fraud ,oligopolistic
agreements , tax evasion or fraudulent conduct towards
society where negative externalities are generated as
overruns and these , society pays a whole , as cost
overruns these impact on prices and quality of services
,causing some type of unemployment such as some
private behaviors that end up as “rescue “example of
banks and businesses , through using the instrument of
the nationalization , to save them from bankruptcy
,where costs are paid by the whole society.
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