Corruption

img_0613“It is often observed that corruption is a huge problem that prevents developing countries from sustainably addressing poverty. Do you agree? If so, what ought to be done about this issue? If you do not agree explain carefully why not?

I shall explain the definition, reasons, and areas of corruption. Then I shall explain how can corruption prevent development and create poverty, which leads to the exploitation of humanity, terrorist activities, and civil wars. Definition and reasons shall lead to the solution to minimize corruption. I shall limit my essay that corruption can be minimized but can not be eliminated.

My thoughts

“If there is any God, then the human being is the God of all Gods.  Jaipaldatta tweets

There is no God. Exploiters use the name of God or Goddess to exploit humanity. Read Srimadbhagwatgeeta by Jaipal Datta.

We all are puppets in the hands of destiny. We act as per the wishes of nine planets and twenty-seven stars. We reap as we sow. Astrology Lessons by Jaipal Datta.

Never doubt that a small group of thoughtful committed citizens can change the world; indeed, it’s the only thing that ever has.

John F. Kennedy (‘Address before the Irish Parliament’, Dublin, 28 June 1963)

The problems of the world cannot possibly be solved by skeptics or cynics whose horizons are limited by the obvious realities. We need men who can dream of things that never were and ask, why not?”

Definition of corruption as per Stanford Encyclopedia of Philosophy.

The latest version of the entry “Corruption” may be cited via the earliest archive in which this version appears:

Miller, Seumas, “Corruption”, The Stanford Encyclopedia of Philosophy (Spring 2011 Edition), Edward N. Zalta (ed.), URL = <https://plato.stanford.edu/archives/spr2011/entries/corruption/&gt;

Philosophy of corruption

Jean Jacques Rousseau natural virtue of the ordinary person and the moral corruption fostered by the urge for distinction and excellencethe start: since society, the alleged agent of corruption, is composed entirely of naturally good humanachieve its full toxicity until it is combined with a growth in material interdependence among human beings.

sensation and phantasmata entail generation, corruption, and corporeality, properties which cannot belongDe nutrition et augmentation (On Nutrition and Growth). Given greater freedom to choose the subject ofanimals, like bees and quail (10.2). Consequently, the growth and decline of religions are in accordance with..Pietro Pomponazzi 

, “mak[ing] us extremely vulnerable to moral corruption” (ibid., 397; cf. Gardiner 2011; also see theIntergenerational Ethics and the Problem of Moral Corruption”, Environmental Values, 15: 397–413. –––, 2011 in The Population Bomb (Ehrlich 1968) that the growth of human population threatened the viability of
Andrew Brennan and Yeuk-Sze Lo
justice. Two mechanisms are proposed to prevent the corruption of the constitution by the accumulation of powerunder the rhetoric of liberty. A system of corruption began at the very period of the Revolution, andallow aristocratic wealth, and the consequent corruption of the principles of liberty, to re-emerge (Hay
Karen Green

but also thereby engenders all kinds of sexual corruption and general degeneration. By enforcing an unnaturalsatisfaction are complicit in the human trade and the corruption of young women who enter into prostitution, though negatively affects the overall composition and growth of the workforce, since the advanced techniquesChristian von Ehrenfels

The practice of corruption and its effects

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Corruption and growth in Africa

Highlights

Analyse direct and indirect corruption influence on economic growth in Africa
Analyse how corruption interacts with the components of government expenditure
Find that corruption makes the negative impact of military spending larger
Find that these effects are robust to alternative measures of corruption

Abstract

A major concern in the development of African economies is the impact of corruption on economic growth and while there is general agreement on its detrimental effects, there is considerable debate over its nature and importance. In particular, there is little work on the interaction between corruption, government expenditures, and how this influences economic growth in countries in the region. This paper takes an endogenous growth model, extends it to include different categories of government spending, and then introduces the possibility of corruption, which is allowed to have different effects on each of the categories. The results confirm the negative effect of corruption and military spending, but also show that corruption interacts with military burden, through indirect and complementary effects, to further increase its negative effect. The policy implications are that the effects of corruption on economic growth are worse than was thought in countries which have high military burdens.

Corruption and growth

P Mauro – The quarterly journal of Economics, 1995 – academic.oup.com
Abstract This paper analyzes a newly assembled data set consisting of subjective indices of corruption, the amount of red tape, the efficiency of the judicial system, and various categories of political stability for a cross-section of countries. Corruption is found to lower investment, thereby lowering economic growth. The results are robust to controlling for endogeneity by using an index of ethnolinguistic fractionalization as an instrument.
Phoolan Devi Dacoit looted the rich and distributed money to the poor in Uttar Pradesh, India. After surrendering to police she stood for election and became Member of Parliament. In a democracy, elections are financed by some government and some allow politicians to take legal or illegal money to spend in elections even if the election commission may have strict rules. Can we eliminate corruption in democracy? No. We can minimize this. That is why no country is 100% without corruption; though the definition of corruption itself is ambivalent – not clear.

Corruption and Political Development: A Cost-Benefit Analysis*

Extract

“Private Vices by the dextrous Management of a skillful Politician may be turned into Publick Benefits.”

—Bernard Mandeville, 1714

Corruption, some say, is endemic in all governments. Yet it has received remarkably little attention from students of government. Not only is the study of corruption prone to moralism, but it involves one of those aspects of government in which the interests of the politician and the political scientist are likely to conflict. It would probably be rather difficult to obtain (by honest means) a visa to a developing country that is to be the subject of a corruption study.

One of the first charges leveled at the previous regime by the leaders of the coup in the less developed country is “corruption.” And generally, the charge is accurate. One type of reaction to this among observers is highly moralistic and tends to see corruption as evil. “Throughout the fabric of public life in newly independent States,” we are told in recent work on the subject, “runs the scarlet thread of bribery and corruption …” which is like a weed suffocating better plants. Another description of new states informs us that “corruption and nepotism rot good intentions and retard progressive policies.”

Others have reacted against this moralistic approach and warn us that we must beware of basing our beliefs about the cause of coups on post-coup rationalizations, and also of judging the social consequences of an act from the motives of the individuals performing it. Under some circumstances, Mandeville is right that private vice can cause public benefit.

Government Spending, Corruption and Economic Growth

Highlights
Analyse the direct impact of corruption on economics growth using a very large sample of countries and find it to be negative.
Analyse how corruption can also interact with other forms of government spending to influence growth.
Find important complementarities between military spending and corruption that compound their negative impact on growth.
Find that combating corruption will have not only positive direct effects but also important indirect effects.

Summary

There is considerable debate over the effects of both corruption and government spending on growth, but few studies have considered how the interaction between them might affect economic growth. This paper provides a contribution to the debate, starting with an endogenous growth model and extending it to account for the effects of corruption on components of government spending, namely military and investment spending. It then illustrates the non-negligible indirect effects of corruption on military spending and government investment expenditure using model simulations. The resulting model is then estimated on a comprehensive panel of 106 countries and the results show that the interactions between corruption and investment and corruption and military spending have strong negative impacts on economic growth. The results also indicate important complementarities between corruption and military spending, suggesting that combating corruption will not only have direct positive effects but is also likely to have positive indirect effects, through reducing the size of the negative impact of the military burden. They are also found to be robust across different measures of corruption, levels of economic development, and groupings of countries. This suggests that policies to reduce corruption, combined with those to reduce military burdens, such as regional security agreements, would have a considerable impact on economic growth.

The Effects of corruption on a developing nation

DH Bayley – Western political quarterly, 1966 – journals.sagepub.com
… that the Indian situation is not atypical. Finally, it must be quite clear that in specifying the effects
of corruption I am presenting hypotheses rather than proven conclusions. The arguments I make
for asserting that an effect of a particular kind is present are often a priori …

The impact of corruption on regime legitimacy: A comparative study of four Latin American countries

MA Seligson – The journal of Politics, 2002 – journals.uchicago.edu
… of over 9,000, from four Latin American countries to test the effect of corruption … the literature,
then tests the competing claims of the political effects of corruption … strong consensus, based on
considerable empirical evidence, that corruption has negative economic consequences …

Is corruption bad for economic growth? Evidence from Asia-Pacific countries

Abstract

This study utilizes the bootstrap panel Granger causality approach, which incorporates both cross-sectional dependence and heterogeneity across countries, to investigate whether corruption negatively impacts economic growth in thirteen Asia-Pacific countries over the 1997–2013 period. The empirical results show that there is a significantly positive causality running from corruption to economic growth in South Korea, a significantly positive causality running from economic growth to corruption in China, and no significant causality between corruption and economic growth for the remaining countries. According to the empirical results, we do not support the common perception that corruption is bad for economic growth for all thirteen Asia-Pacific. On the contrary, the results of this study suggest that the “grease the wheels” hypothesis is supported by South Korea. Additionally, the results of this study indicate that for most Asia-Pacific countries, policymakers’ use of anti-corruption policies to promote a country’s economic development may not be effective. Finally, the results of this study also suggest that for China, an increase in economic growth leads to an increase in corruption.

Corruption Around the World: Causes, Consequences, Scope, and Cures

Article

Abstract

Corruption is attracting a lot of attention around the world. This paper surveys and discusses issues related to the causes, consequences, and scope of corruption and possible corrective actions. It emphasizes the costs of corruption in terms of economic growth. It also emphasizes that the fight against corruption may not be cheap and cannot be independent from the reform of the state. If certain reforms are not made, corruption is likely to continue to be a problem regardless of actions directly aimed at curtailing it.

Corruptiongrowth and political regimes: Cross country evidence

F MéndezF Sepúlveda – European Journal of political economy, 2006 – Elsevier
Abstract This paper studies the effects of corruption on long-run growth incorporating measures of political freedom as a key determinant of the relationship. Unlike previous empirical studies, we find evidence of a non-monotonic relationship between corruption and growth after controlling for several other economic variables and restricting the sample to those countries considered to be free. Our results indicate that the growth-maximizing level of corruption is significantly greater than zero, with corruption beneficial for economic growth at low levels of incidence and detrimental at high levels of incidence.

Corruption, economic growth, and income inequality in Africa

K Gyimah-Brempong – Economics of Governance, 2002 – Springer
Abstract. This paper uses panel data from African countries and a dynamic panel estimator to investigate the effects of corruption on economic growth and income distribution. I find that corruption decreases economic growth directly and indirectly through decreased investment in physical capital. A unit increase in corruption reduces the growth rates of GDP and per capita income by between 0.75 and 0.9 percentage points and between 0.39 and 0.41 percentage points per year respectively. The results also indicate that increased corruption is positively correlated with income inequality. The combined effects of decreased income growth and increased inequality suggests that corruption hurts the poor more than the rich in African countries.

Governance regimes, corruption and growth: Theory and evidence

T AidtJ Dutta, V Sena – Journal of Comparative Economics, 2008 – Elsevier
We study the role of political accountability as a determinant of corruption and economic growth. Our model identifies two governance regimes defined by the quality of political institutions and shows that the relationship between corruption and growth is regime specific. We use a threshold model to estimate the impact of corruption on growth where corruption is treated as an endogenous variable. We find two governance regimes, conditional on the quality of political institutions. In a regime with high-quality political institutions, corruption has a substantial negative impact on growth. In a regime with low-quality institutions, corruption has no impact on growth. Journal of Comparative Economics36 (2) (2008) 195–220.
Corruption in other countries
Ted on corruption
Bill Clinton – Corruption and his sex affair
Organized crimes corrupt police
Barkha exposed including media – truth must be spoken. Manipulation should be avoided.
Corruption Index by Transparency International 21 February 2018
Corruption in Indian Hindu temples. You give 10 Rs to Indian God and you ask favor of a million.
In sixteen century there was a ticket to go to heaven costing Pound 100 or a booking of land on the Moon or Mars.

Good enough governance: poverty reduction and Reform in developing countries

MS Grindle – Governance, 2004 – Wiley Online Library
… However, this agenda has a very large constituency in developing and transitional countries
among … the all-too-evident conditions of low growth, distorted markets, corruption, inequity, poorly …
what is occurring in particular countries can indicate some governance issues that are …

The End of Poverty: economic possibilities for our time

J Sachs – European Journal of Dental Education, 2008 – Wiley Online Library
… of the leading voices for combining economic development with environmental sustainability,
and as Director of the Earth Institute leads large-scale efforts … We do not need a 1-page textbook
telling us that all is due to corruption … Simple interventions can make a huge difference …

[BOOK] Corruption and Government: Causes, consequences, and Reform

S Rose-Ackerman, BJ Palifka – 2016 – books.google.com
… The growing interest in institutional issues among development economists encouraged
me to make this effort … Corruption is a problem that has existed since the rise of organized
states and that is not likely to disappear any time soon …

Harnessing innovation for change: Sustainability and poverty in developing countries

S KhavulGD Bruton – Journal of Management Studies, 2013 – Wiley Online Library
… dysfunctional institutions act to undermine property rights and promote corruption (Misangyi et
al … Much like piped clean water, large-scale electrification requires massive national investment …
Business ecosystems have ‘a large number of loosely interconnected participants who …

Second‐generation poverty reduction strategies: New opportunities and emerging issues

R Driscoll, A Evans – Development Policy Review, 2005 – Wiley Online Library
… as a means of addressing ‘underlying principles’ related to political governance, corruptionpoverty
and macroeconomic … The prospect of large sums of budget support being delivered to small … to
governing without parties took place against a backdrop of massive social unrest …

[PDF] Good governance and aid effectiveness: The World Bank and conditionality

C Santiso – The Georgetown Public Policy Review, 2001 – sti.ch
… then represented an important departure from the previous policy, prompted in large part by … In order
to alleviate the ‘credibility problem‘, Collier (1999) argues that IFIs must … corruption into account
because, even if aid cannot significantly reduce corruptioncorruption can significantly …
People also ask
Jeffrey D. Sachs is the Director of The Earth Institute, Quetelet Professor of Sustainable Development, and Professor of Health Policy and Management at Columbia University. He is also Special Advisor to UN Secretary-General Ban Ki-moon. From 2002 to 2006, he was Director of the UN Millennium Project and Special Advisor to UN Secretary-General Kofi Annan on the Millennium Development Goals, the internationally agreed goals to reduce extreme poverty, disease, and hunger by the year 2015. Sachs is also President and Co-Founder of Millennium Promise Alliance, a non-profit organization aimed at ending extreme global poverty. He is widely considered to be the leading international economic advisor of his generation.

For more than 20 years Professor Sachs has been in the forefront of the challenges of economic development, poverty alleviation, and enlightened globalization, promoting policies to help all parts of the world to benefit from expanding economic opportunities and well-being. He is also one of the leading voices for combining economic development with environmental sustainability, and as Director of the Earth Institute leads large-scale efforts to promote the mitigation of human-induced climate change. In 2004 and 2005, he was named among the 100 most influential leaders in the world by Time magazine. He was awarded the Padma Bhushan, a high civilian honor bestowed by the Indian Government, in 2007. Sachs lectures constantly around the world and was the 2007 BBC Reith Lecturer. He is the author of hundreds of scholarly articles and many books, including the New York Times bestseller The End of Poverty(Penguin, 2005). Sachs is a member of the Institute of Medicine and is a Research Associate of the National Bureau of Economic Research. Prior to joining Columbia, he spent over 20 years at Harvard University, most recently as Director of the Center for International Development. A native of Detroit, Michigan, Sachs received his BA, MA, and PhD degrees at Harvard University. He has been conferred with honorary doctorates from universities around the world for his extraordinary contributions in global economics, including one conferred by his close colleague Chancellor Mary Robinson from the University of Dublin, Trinity College.

Jeffery Sach’s presentation on his book An End to Poverty to his colleagues in Columbia University was relayed as a keynote video presentation to set the context for the Global Congress and the 14 working groups. Only some of the moving images he presented are included in his keynote address. See: http://www.columbia.edu/cu/news/media/05/349_the_end_of_poverty/.

Address

Poverty will not be ended by sheer willpower alone. It will not even be ended by ethical commitment alone, though ethical commitment is essential. It will be ended by bringing the best of our thinking and the best of our science, together with an ethical commitment to attend to the very great problems of the world. It will require the thinking of scholars and scientists and committed practitioners from across the range of human knowledge. The Earth Institute is a unique place in the world; it brings together scientists, engineers, public health specialists, and even a few economists to think, with the knowledge that they have the support and confidence of this university community. So I want to say how grateful and pleased I am to have this forum to introduce these ideas.

I think we can do something marvelous in our generation. I think we can do something that no other generation in history could even contemplate. Not only do I think that we can do this marvelous thing, I think we must do it. This wonderful thing that I think we can do is to bring an end to extreme poverty on the planet and it can be accomplished by the year 2025.

I would like to explain this first by introducing you to some of the people that I have been privileged to meet. I will show you some of the haunting images that I have experienced in many years of work in very poor places. This is the face of extreme poverty. We have to understand it. Before I saw these people and their circumstances, I could not have imagined it. Still, after 20 years of working with these villages in all parts of the world, I continue to experience dreadful conditions I could not have imagined before. Nevertheless, horrific as the problems are, solutions are also at hand. The solutions can be found by a proper diagnosis of the causes of such poverty and suffering and a proper understanding of the forces at play that have led to the fact that five-sixths of the world has escaped from extreme poverty. All of the world was once in extreme poverty. Not so long ago, perhaps less than 200 years ago, there were only a few dukes, duchesses, kings, and queens that were beyond extreme poverty. The rest of our forebears were fighting for survival every day. We have had a scientific and industrial revolution. We have had two centuries of economic development (albeit at times violent and frighteningly unfair, and sometimes grotesquely exploitative), which were successful in raising living standards, raising life expectancy, and in cutting sharply mortality and illness from infectious diseases. But although that progress has reached a substantial number of people, it has not reached all on the planet. The success of global economic development in most of the world makes it possible for us to think of the one billion people who have not been part of that success. One-sixth of humanity continues to struggle daily for survival. Their extreme poverty is so forceful that it literally kills. It continues to kill by the millions each year because extreme poverty deprives people of access to the most basic tools for staying alive: safe drinking water, basic sanitation, a bed net to fight against malaria, a doctor in the case of a dreaded illness that is otherwise treatable, seeds so that crops can be grown and hunger alleviated. This deprivation is extreme poverty and a billion people on the planet are still struggling with it. Meet some of them.

In our travels, we saw what our fellow human beings had to endure. There were regions where crops failed due to long dry seasons and erratic rainy seasons, and this was a year when the rains failed. One poignant example was a grandmother and her extended family of grandchildren but not her own children. They had had died of AIDS and left her many grandchildren without parents. In that village, we saw very few mothers and fathers of working age; a community of grandmothers and orphaned grandchildren with a missing generation. They are hungry and they are fighting every day, at risk of malaria, a killer disease. Malaria will claim between 1 and 3 million lives this year, even though it is 100% treatable if you get the medicine in time. Moreover, it is largely preventable, if you sleep under a bed net treated with insecticide. These children do not sleep under such a bed net; as they cannot afford it. A bed net costs $5, it lasts 5 years, two children sleep under it. It therefore costs a mere 50 cents per child per year, and still the poorest cannot afford it. They have no money whatsoever. They grow crops but not enough even to feed themselves. This is in essence a non-cash economy for hundreds of millions of people. Carol Bellamy, the Head of UNICEF, called the situation in Malawi, ‘the Perfect Storm’: AIDS, endemic malaria, drought – a triple catastrophe.

We saw this child (Fig. 1) in a subdistrict hospital in Western Kenya just 3 weeks ago. There is a tongue depressor in the mouth so that the child would not bite his tongue off. The child, most likely, had been given medication that does not work any longer due to the development of widespread drug resistance. These former first-line drugs are now often useless. You have children brought in a state of coma as this young boy was. We do not know whether he survived. We do not know whether he will live with lifetime impairment if he did survive.

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