Corruption is a slow poison which kills the constitution, the society and the economy of developing nations. In other words corruption is one of the biggest challenges faced in the contemporary world which clearly shows the difference between good and bad government,. The factors that driving corruption and the effects of corruption can vary widely. Sometimes mishandling of policy, may lead to catastrophic situation, where it harms the various sectors of the developing countries.
Corruption is found almost everywhere and on everything, starting from paying bribes to civil servants for his favor of work to the leading politicians and bureaucrats use the public power to their personal end. Corruption attacks the morality of the justice that damages the society. Corruption includes bribes, trading insider, electoral fraud, embezzlement, patronage, conflicts of interest etc..
“So far as our institution is concerned, thers is nothing more important than the issue of corruption.. At the core of the incidence of poverty is the issue of equity, and the core of the issues of equity is the issue of corruption.-(James D.wolfenohn ,president of the world bank October 1999)”
Corruption in Developing Countries:
The evidence from the developing world tells us there are only few countable developing countries that have low corruption levels. Most of the developing countries have are very close relationship between corruption and investment and growth. Lets us see the difference between, country with large population and country with very less population. It is divided so large population country have huge number of labor power , large internal market. The country with large human resource will be affected by corruption much faster as compare to less populated country, because government in large developing countries will be focusing on import substitution policies for longer periods of time than in smaller developing countries. This will influence the foreign investors to accept the corruption as a way doing their business, that will influence them to access to local goods and cheap labor markets. Neither of these advantage is available to small developing countries. Small marketing size means that they should reach the limits of ISI much quickly and much faster way. By doing so. Small developing countries push their limits to conform the emerging governance and corruption.
Similarly, small developing countries will have small domestic markets and very small labor markets, this means foreign investors have less access to the local corrupt business. Combination of these factors shows the difference between large and small corruption among the developing nations. Singapore, Malaysia, Hong Kong have very less population , but have very high growth rates even compare to countries of huge population like China, India Mexico have very low growth rates.
In the definition shared by many political scientists, political corruption is any transaction between private and public sector actors through collective goods are illegitimately converted into private regarding payoffs. (Heidenheimer et. al.1993:6). This definition shows clearly the involvement of the state and state agents in corruption. Political corruption mainly takes places in high level of political system, usually decision-makers. They do this while implementing any law or order by the name of common people these corruptions takes place. Both political and bureaucratic corruption have distinction in their needs and implementing it. Political corruption takes place at top management but bureaucratic corruption takes at lower levels of state.
Political corruption not only leads to the misleading of resource, but also affects the manner in which decisions are manipulated. This cause the delay in following the orders and deviate from formal and written legal norms, from professional ethics. Political corruption occurred when laws and regulation are abused by the rulers, side-stepped or even tailored to fit their interests towards the problem. Authoritarian is one the basic modes of operation of political corruption. It a place where authoritarian power holders enrich themselves. Political corruption is not restricted to authoritarian systems, it maintains link between authoritarianism and political corruption. In democratic countries, the problem of political corruption is more incidental and ossasional nature, and can be dealt within the existing political system, by doing reforming ,vitalizing and strengthening the existing political institutions.
This is a form of corruption where the money or benefits are collected and privatized for an individual. In this corruption individualist share every little percentage of benefits with his equals, or with particular group with some unity and coherence. Private, individual nature of corruption is commonly inclined because of the illegal nd surreptitious nature of corrupt transactions. Private corruption have some personal benefits for the corrupt actor or his family or his friends. However, corruption is also of collective type. Because corruption is more deliberate way of resource extraction for the benefits of a collection of members in a institutions. Corruption has strong and more strong inclination for collectivization. It is mainly because to keep quiet, which is much easier way rather than blow the whistle and inform. Room for monoeure is more large scaled institutionalized corruption, the conspiracy between individuals more easily extended to larger groups which involves partners, friends, colleagues, assistants and superiors. Corruptions spreads, people tries to accept it and believe that, it is unavoidable.
Consequences of institutionalized corruption
Corruption cause lot of harm to the society, like for instance when it leads illegal mining of coal, gold or a logging in rain forest. Corruption may also lead to insecure citizens, politicians, and administrators between huge opportunities, grave risks and much pressure.
The relationship between corruption and economics development are more close to each other. They are more interrelated as seen in table 1, which is more mutually explicatory.some suggests or argues that corruption in a institutions are good tings which helps the things to be done in much smoother way. It also unlock the doors of state bureaucracy and enables entrepreneurs and other business people to entre into the country. Corruption is always not bad, but this is shown in level of economic growth and the level of direct foreign investment in the highly corrupt countries. Many countries doesn’t seems to suffer because of corruption even in the existence of systematic corruption. In Africa, high level of corruption pulls down the economy, but some countries allows huge investment like wallmart ,AKIA etc through foreign direct investment(FDI).
In general, corruption is detrimental to economic development because it damages the foreign investment,local private forms, entrepreurship etc. In the case of South Korea, president handled huge amount of money who is leader of ruling party ,where he made numerous grand scale transactions, and common people couldnt find evidence of its private use. The hole sum f money is then reinvested in south Korean stock market. Corruption in weak state , where the ruling party have little control over the corrupt person, the legitimacy of the state will wane with lack of service. Controlled and uncontrolled state of legitimacy have common effect of undermining state. But in the case of strong states where the power are exclusive and undeniable control of the economic policies , where it takes both formal and informal ways of consumption. Strong leader will have strong control over the corruption , where he knows how much he will gain from that kind of corruption. In this state of strong , corruption will predicable and that can be acceptable by businesses and public too. In these states, the institutions wont suffer much.
Legitimacy depends on the services rendered and the ability to satisfy popular demands, more than the way the state is operated. Besides, the charisma of political leaders is also important when it comes to legitimacy. Efficient states can therefore maintain a relatively high and stable level of corruption, or manage to keep the level of corruption at a low level at will. The
strength of the state and the political will is what explains the low level of corruption
in authoritarian countries like Singapore, Hong Kong and Taiwan. Legitimacy depends on the services rendered and the ability to satisfy popular demands, more than the way the state is operated. Besides, the charisma of political leaders is also important when it comes to legitimacy. Efficient states can therefore maintain a relatively high and stable level of corruption, or manage to keep the level of corruption at a low level at will. The strength of the state and the political will is what explains the low level of corruption in authoritarian countries like Singapore, Hong Kong and Taiwan.
By breaking down, corruption into many number of types and seeing their interdependencies, it is possible to explain the prior reduction of corruption across the developing countries are not viable. Some types of corruption drives the economy of the country in much positive way with high level of social transformations. At the same time, it is important to oppose corruption in developing nation. Because only very few countries had shown postitive impact on corruption but most of the developing countries, have very poor economic growth, damaging the constitution badly by creating political un-stabilization. Identifying the main factors that driving the corruption in a developing country and on strengthening the capacities that are required to achieve rapid growth of GDP is very important.
The simplest and implacable way it taken to curb the corruption , was to do away the corrupted politicians and bureaucrats altogether, by reducing the size of the state or making all sectors in state into private. Curtailing corruption are of four different ways that are of four different types control from inside, control from outside, control from below and control from above. It can also be said has control from external world, control from administrative and bureaucratic institutions , control from civil society and business coummity and control from rulers and themselves. Corruption may also be controlled by openness, transparency and information costs, intergovernmental competition, localism, party competition, decision rules, collective action problems,and public administration .
For effective implementation of anti- corruption in institutions we can use four strategies have to be implemented, such as Societal, legal, market, and political strategies.
In societal strategy, each person should follow the standard of morality, they should be vigilant and watch out for individuals who engage in corruption. Public should be well known about the concequence of corruption and its negative effects. Private press and educational programs regarding anti corruption encouraged to take action againist corrupt boby.
In the legal strategy, the law and judiciary , the police, the press, the media should work towards the goal of discriminating the corrupt through justice. Civil servants should be given more power to do their duties. Law should be clear about corrupt and corruption. Common man should be given rights to report against corrupt politicians.
In the market strategy, the gap between the government and market structure must be minimized to avoid in lower level corruption. Government should regulate the laws, that private exchange pays way to corruption.The most effective way to minimize corruption is to modify the existing rules and by implication, change of incentives that trader facing. Changing rule may not be effective until unless ,the reconstruction of constitution is necessary.
The political strategy, decentralization of power, giving way to the ruling coalition to engage in corrupt activities. By implementation of more transparency in public sectors, budget process should be published to mass media.