Cause And Effects Of Corruption  

Corruption takes place when people occupying public office use it for private gain. Governments both in developed countries and the developing countries have been toppled by corruption scandals. Economic growth has been slow in many countries as the funds have been misused and have not reached the poor.

Whenever there are government regulations and the officials have the discretionary powers to allocate, this can lead to corruption. Government policies such as trade restrictions, price controls, and subsidized credit are some of the examples where in officials have the discretion which is generally misused to make money. The countries where civil servants are paid low wages are on the look out to increase their income to meet the growing expenses of their families. Corruption is found to be common in countries with political instability, and bureaucratic red tape. Financing of the political parties and the elections makes corruption a part of the political system. The political party and the politicians who got elected can be manipulated by the people who provided funds to seek concessions and contracts as reward for the financial resources they provided for the election campaign.

Corruption has a negative impact on the economic growth of the country. It promotes inequality among competing firms. There is no level playing ground. It can lead to poor quality goods and services. Corruption diverts resources from investment and productive usage. It gives rise to lack of transparency and accountability. Quality of life suffers. People lose faith in the administration. It can also discourage new ideas and innovations.

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Cause And Effects Of Corruption

Causes-Of-Graft-And-Corruption      Corruption is known to flourish in a country where a large number of laws and regulations are at work to restrict business and economic activity. In addition, if the restrictive measures are complex and opaque and applied in a selective and non-transparent manner this becomes a fertile ground for officials to utilize the opportunity for making money. If there are no institutional mechanisms to hold people enjoying power to be accountable then it becomes all the more difficult to put a stop to corruption. More..




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