How does corruption affect development and development management? 1. INTRODUCTION Generally speaking, a transparent, fair and clean environment is one of the important guarantee of a rapid economic development. Corruption usually plays a negative role in social and economic development field (World Bank, 2000). Mauro (1996, 1998), Monte and Papagni (2007), Tanzi (1998) believe that corruption will hurt development.
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). The broadest, most suitable definition which exists today simply states that corruption is any illegal act performed by a politician to produce results which would have been otherwise impossible (Ebbe). In some cases, government, politicians, and criminals entwine for the sake of amassing money in order to secure their own jobs.
Inequality of income, to many, is the seizing of opportunity efficiently, and an expected cause of popular economic systems. However, the inequality that is being exemplified in the world today is a result of a correlation with corruption. Corruption, as in seizing the opportunity for human greed.“corruption is a function of motivation and opportunity”(khagram). As inequality increases so does the motivation for corruption. The nature of this relationship between inequality and corruption can be seen through history, and where it is most prevalent.The U.S has seen its bouts of corruption within political systems, and in order to stop this vicious cycle, we need to be leaders of democratic nations.
"(John Githongo) According to Le Billon (2003), corruption is part of the social and political fabric of society, and thus, conflict may be engendered more by changes in the pattern of corruption than by the existence of corruption itself’ for example, by appeasing belligerents in order to buy peace. REFERENCES Anderson, J. H., Gray, C. W., (2006). Anticorruption in Transition. Who is succeeding… and why? Washington DC: The International Bank for Reconstruction and Development/ The World Bank Argandona, A., (2003).
The open markets are filled with competitors trying to trade and sell their goods and services. Fair Trade laws are enacted to provide an equal opportunity in the marketplace for developing countries and small producers of goods. To protect their financial economies, .governments intervene by placing huge taxes and quotas on exports, to restricting producers who try to flood the markets with their products. This intervention also helps those producers who are facing unfair trading practices. Companies who provide cheaper made products, can cause a deficit for any country by flooding their economy with these exports.
Bray, J. (2005). The use of intermediaries and other alternatives to bribery. The New Institutional Economics of Corruption, London und New York, 93-111. Schubert, S., & Miller, T. C. (2008).
If taken in perspective, outsourcing effects should be analyzed. Cheaper products for U.S. citizens, profits and revenues, and economic gains might be ideal for some however, many look over the negative effects concerning the same ideals. In fact, influential articles by Tom Hayden and Charles Kernaghan, "Pennies an Hour and No Way Up", Nicholas Kristof and Sheryl WuDunn's, "Two Cheers for Sweatshops", complicate matters further when they write that outsourcing affects the U.S. in a negative perspective. As they argue negative issues about cheap labor, loss of jobs in the U.S., working conditions, economic markets, enviromental issues, and huge profit corporations, more regulations need to be enforced. Economic disaster will result if outsourcing continues on the same path with minimal regulations.
Regarding Global Infrastructure Anti-Corruption Centre, corruption most of the times happen because some people are willing to use illegal ways to increase individual or corporate profit. For being a corrupt person, the actions have to be done in purpose. Furthermore, even living circumstances which can prevent people from being involved in such activities they are not discouraged from these, and continue with their illicit purposes. According to the last studies in 2010 by the anti-corruption agency (Transparency International) 178 countries were studied, 57 had serious corruption problems and 73 of them had “rampant” corruption (Lash & Batavia 2013, p. 1). Moreover, corruption has several impacting events that can slower the economy growth of a country, decrease the investment and make it difficult for other countries to invest in the countries where corruption is occurring.
There are many arguments for and against globalization, some pros and cons include: • Pros of globalization: o Free trade reduces barriers o Promotes global economic growth: creates jobs, and the market becomes more competitive for companies, which lowers prices for consumers. o Information is being shared: technology and becoming culturally aware, companies outsource to each other. • Cons of globalization: o Makes the rich richer and the poor poorer o Large companies can exploit tax havens in other countries o Outsourcing of jobs/exploitation of labor: A major problem for developed countries is that jobs are being lost to lower cost countries. Companies outsource to other countries because it’s cheaper, but they usually ignore safety standards to produce