Corruption

Grand corruption

Grand corruption is also called at political corruption. Grand corruption can define as, theft of vast amount of public resources by public, administrative and political officials.

Regulatory corruption

Unlawful completion of private actors with governments’ agents, officials or politicians for their mutual private benefit is known as regulatory corruption. Private sector captures the state legislatives, executives and judicial operates for its own purposes. Regulatory corruption coexists with the conventional and opposite view of corruption. In which public officials destroy the private sectors for private end.

Patronage

Patronage is form of corruption. Using officials positions to serve better to the clients having same geographic, ethnic and cultural origin so that they can enjoy treatment in their dealings with public sector including public sector employment.

To handle the corruption we must consider some strategies as principal agent problem and significant collective action problems (Hamilton and Hart, 2001)

V. DECENTRALIZATION AND CORRUPTION

Theoretical framework cannot make clear how the decentralization effect on corruption. The relationship between decentralization and corruption is very smoky in background literature. According to the first view decentralization increases the corruption. Shleifer and Vishny (1993) utilized conventional industrial organization theory model and concluded that decentralization likely to increase corruption. Although some authors go with positive side of the effect of decentralization on corruption, others writes that the effects are insignificant, unclear and context-dependent, with some at the opposite end arguing that decentralization is not helpful to tackle the probl...

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...have political connections with the powers that be are always able to conduct their commerce without their problems; even they are illegal under the law.

This most visible impact of decentralization is race to create new laws and regulations among districts. With decentralization nature of corruption also changed from the centralization. In this new form of corruption, bribes demanded by local and national level at a same time.

There are many complaints from international investment council and some other friends listed countries. They all are afraid to invest in Pakistan because of corruption at all levels of government administration levels. The increase in list of new permits and regulations in decentralization causes the increase in the opportunities of corruption.

Pakistan always appeared prominently on the list of most corrupt countries in the world since 1947