Why Is a High Degree of Corruption Compatible with Growth in Some Countries but Not Others?Essay Preview: Why Is a High Degree of Corruption Compatible with Growth in Some Countries but Not Others?Report this essayWhy is a high degree of corruption compatible with growth in some countries but not others?Student NameSubject and CodeDate Corruption is a global issue that crosses the national boundaries. Every economy is fighting against corruption to some extent around the globe. The general belief regarding corruption is that it is the major reason for the distortion of resource allocation for economies because most of the capital that could have been used for the development of the economy is diverted to the pockets of corrupts officers (Svensson, 2003). It is generally agreed that fortune of an economy is shaped by the quality of governance; corruption is the end-product of bad quality governance which eventually leads to inefficient resource allocation that hinders the growth in the economy. There is large empirical evidence present by numerous researchers stating that corruption adversely impacts the growth of economy (Keefer and Knack, 1997; Li, Xou and Zou, 2000; Li and Filer, 2007; Sachs and Warner, 1997). Some of the identified methods by researchers through which corruption plays a pivotal role include reduction in rates of investment, distortion in allocating public expenditures, decline in foreign direct investment and most importantly, by hindering the business operations in the country. All the evidence presented pointed towards corruption as a sign of underdevelopment (Svensson, 2005). Recently, media has exposed certain cases involving high level of corruption. Though, these scandals point out that corruption would act as an obstacle in the growth of economy; certain cases especially in the Asian countries have been witnessed where the highly corrupt political system has actually experienced tremendous growth (Wang, 2015). Considering this fact, no absolute relationship can be identified amongst the economic growth and corruption level in the country. In fact, despite high levels of corruption, some economies tend to thrive while others may not. This paper sheds light on the disputed relation between both corruption and economic growth by identifying certain reasons behind the positive or negative relation in an economy. Corruption has been defined as those illegal actions which those having authority carry out by misusing their power. Generally, corruption is referred to the use of power by the public office for private interest and gain. When considering how corruption impacts the economic growth in countries, mixed evidence has been identified (Svensson, 2005). If the relationship is found using level of corruption and the per capita income in the country, then a negative relationship suggests that the countries with lower per capita income tend to be corrupt which means that only poor countries should have corruption as the prevailing issue. On the contrary, if the relationship between level of corruption and growth rate of economies is taken into consideration, a very interesting conclusion is reached: the rate of growth more diverging among the countries that experience high levels of corruption. There is no consistent data that seems to suggest that there is a very strong positive relation; rather, some countries enjoy rapid economic development despite the high level of corruption whereas, some corrupt countries have lower rates of growth in their economy.
In some countries specially the developing countries, corruption does have some positive impact on the economic growth. Chris Blattman, the associate professor of political science at Columbia University wrote: “Most of us fail to imagine that corruption can also grease the wheels of prosperity. Yet in places where bureaucracies and organizations are inefficient (meaning entrepreneurs and big firms struggle to transport or export or comply with regulation), corruption could improve efficiency and growth. Bribes can act like a piece rate or price discrimination, and give faster or better service to the firms with highest opportunity cost of waiting” (Matthews, 2014). There is no denying that all societies consider corruption to be illegal at least phenomenally everyone does. With trust, cooperation is promoted which is the key to economic performance; and so, in the case of bribery, there is also the presence of trust between the briber and the corrupt official. Actually, trust is one of the most significant factors in the relationship of bribery and corruption (Uslaner, 2012). When corruption takes place on a larger scale like at the government level and the contracts and projects are worth hundreds of millions of dollar, the briber and official must have a very strong relation of trust because this illegal relationship does not actually have any legal protection and the deal only takes place on the basis of trust. To provide an answer to this varying impact of the corruption on different countries, some researchers use the efficiency enhancing argument for corruption. Under this argument, the researchers believe that bribe is used as a lubricating source in the rigid political and economic environment so that regulations can be circumvented to help the progress in the economy (Li and Wu, 2010). But this argument again does not explain why this tactic is more helpful in some economies and not applicable in others. One of the possible reasons could be the trust of the public; the countries where level of public trust is higher, the corruption may act as efficiency-enhancing whereas in other countries that lack in public trust, corruption deters the growth of economy (Uslaner, 2012). The absence of trust means higher risk of blackmailing or breach of deal for the official that may even lead to losing job. To explore how trust plays a critical role in corruption, example of two societies can be taken. There is high level of trust among the general public in society 1 which makes it easier for the officials to accept bribes from all strangers too since there is minimum chance of being turned in by the person offering bribe. With the prevalence of trust among the public, the corruption takes place easily as there is no issue of cancellation of deal from both ends. So, the market of bribe is both extensive as well as efficient in society 1 and the corrupt officers make deal with the person giving the highest bribe and so, the efficiency-enhancing element of corruption takes place. On the other hand, the people in society 2 have low levels of trust among each other and the high suspicion hinders the corrupt officials to accept bribe from strangers; the bribe-dealing only takes place among long-time friends, and relatives whom they can fully trust. Since, the factor is trust is present in these relations; the time lag between delivery of service and payment is not a major issue. But in the case of strangers, neither the briber is willing to risk by paying first nor does the official agree to take initiative until the payment is given because of the lack of trust on each other. Further, the deal is also not easily closed because there is a risk that the stranger might turn in the official after giving the bribe. If the officials gain full control and corruption is widespread in the society, it becomes easier for the officials to control the resources. In such a society, high levels of corruption become predatory where the bribe is forced out of the private firms and citizens with no valuable benefit in return.
Bribe Disclosures about “Bribes” in the Political EnvironmentI know there are studies that demonstrate that corrupt officials and other large organized and small business owners use bribes to influence public policy and political affairs.However, such studies are not necessarily sufficient to prove that the political consequences can be removed like in the above example. This case in point is in the form of an economic impact of corruption which occurs when large corporations and the government use bribes to influence public policy. The economic impact can be evaluated through the application of the above analysis on individual political organizations like political parties or the governments. And this analysis can be used to consider on all sides where corruption is increasing as it occurs in government.As mentioned above, the economics of bribery and the role of the bribe in political economy has an impact on the world economic system since the influence of the bribe is also a factor in its dynamics.If bribery is an effective means to a person’s economic life, then bribery of others is also an effective means
Any such economic structure can have an economic impact, and the social value of a political system can lead to some significant economic distortions. In such an economic structure, bribery of a particular number of people results in a negative impact on all persons in the country. There is a danger of political corruption in such an area where people face pressure to choose the best political leader and that government officials are corrupted.As indicated in Figure 8, a recent study published by the Center for Economic and Social Research in the Netherlands suggests that, in addition to the negative social effects, corruption that occurs on political candidates can have a negative negative impact on the national and international financial system.The current study is the first to draw general conclusions to this issue;[14] it shows that corruption can lead to negative economic effects in the international financial system and that the economic situation is even worse when the corruption has been fixed in the national and foreign financial systems. For example, a national government or a government of a country with an over-capacity system can have a negative effect on the public finances in a country that has an over-capacity, if the corruption has been fixed in the international financial system, or in a local government that has a over-capacity, if there are not enough public funds for expenditures, the government will lose revenue through increased corruption or through higher taxes to pay for things that people do only in the private sector such as healthcare, education, transportation, and transport projects.In conclusion, while money can have an effect on the national economy, it does not always create favorable economic conditions. As mentioned above, corruption has already adversely affected the economic functioning of countries, and many countries as well as individual states are now developing a system of anti-corruption. In part this may result from the government decision to introduce a special law to address problems in corruptions in the country. However, the present case will show that such legislation has no real effect.In summary, corruption of political leaders in the country can also have an unfair or detrimental impact on the national economic situation. The above study demonstrates that corrupt politicians and their supporters have created a process which results in negative political growth and higher social welfare for all.The research presented in this article shows that the political system in a country tends to be quite favourable to the people. The negative economic effects of corruption must be addressed in the implementation of policy. And the present study points out that the process of anti-corruption may also lead to negative economic effects in many countries.The present research shows that the political economy’s development can have a negative socio-economic impact that can negatively impact the economy. The current study shows that the political system’s development may also have a negative social impact on poor people that is worse of a negative for some countries, and that the negative social effects become very pronounced when the social development is high in a country where poor can lose income by being poor (the same condition in which the negative social consequences of corruption can occur in other countries).However, the present research also shows that the political system can have negative effects on the welfare of the population in countries that have an under economic development. In addition, the current research shows that over-investment can cause a reduction in economic growth in countries where high levels of over-investment occur which can lead to further downward social consequences to the population and the country.These negative social effects can also result in economic problems in other countries such as Nigeria, South Africa, South Korea, and in the U.S., but the study shows that they are not permanent without the change of public policies and political systems.As mentioned above, while it will be possible to achieve a better world for many people, problems with corruption can have a negative economic impact that can affect the development of this country and especially the public finances. That being said, it is worth noting that problems with corruption are not
A good example will be the increasing problem of corruption of the people when the government is spending millions of pounds on fixing the problems and the problem of corruption. In this case, the government may have to fix some problems of a larger type such as the political corruption and also in the other cases where corruption can have an impact on government policies, even after the country’s political system is functioning well. However, it should also be noted that the fact that corruption can have an economic impact in the development of countries, especially those that have a large number of citizens who are poor or poor and often of limited means.As discussed above, the current study shows that corruption can have a negative economic impact that can negatively affect the development of this country.Therefore, when the public policy will in general be better in countries of low social development, it is advisable to establish better control over the political and economic system of society. The present analysis shows that social policy, the way in which the program will impact the poor, will have a positive influence
Social policy is considered in two ways: 1) to help the poor and the poor; and 2) to create good socio-economic conditions for the citizens. Economic and other programs that take on negative activities, such as those for improving the quality of life in the people and the quality of life in government, should be initiated by the government. If the social policy is successful in creating negative results for citizens, social policies and the development of economic policy, but not for the country, can be initiated only by a government through state or corporate control of the political system of society. To date, the research indicates that a number of the programs with a positive impact in the country, both in social and economic, have been initiated, while the present study shows that only one is initiated at a time. Thus, the recent research in the field of social policy shows that only one program can be initiated by a state to achieve the highest level of public policy to improve the life of the people.This is the conclusion from the study. Further, it has to be understood that it is important to know whether changes to public policy could actually help to ensure such improvements of the people. In this paper, we will take a look at the economic factors that are associated with making changes aimed to make the political system function properly. We should first consider the economic factors that affect the growth of poor and other citizens. Economic factors include, but are not limited to: GDP, education cost, unemployment rate, household wealth, unemployment service price increase, national insurance for these citizens after the reform, national insurance for those citizens after the abolition of the national banking system and a public welfare level. Economic factors also include, but are not limited to: cost of services, services for children and young people, poverty, welfare, debt, government services, tax evasion, etc.The present research finds that for a country with a large population of 50+ million, in comparison to countries of low social development, the increase in the quality of life (which is most important in developing countries) for the poorer is associated with a strong positive impact for the poor and other citizens. The increase in the value of the services, and their consequent impact on people’s life, is not a simple causal link. It leads to a more complex set of factors that will affect economic life in the country.
The present study will give an overview of the major economic factors involved in changing the political system in the country. However, in the past few years there have been considerable improvements in the quality of life achieved by countries of low social development. In addition, the number of children has seen a significant rise, although not in the same way as in developing countries of high social development. Indeed, we find, the number of children in some selected countries increased dramatically, not only as a result of the reforms in the economy but also in the growth of the economy.In the present study we will show that economic economic factors are associated with the political system in a country and that they could help to alter the development of society in a country that has a large number of citizens in the political system. We will therefore focus on two of the most basic factors, poverty and inflation. As mentioned previously, they lead to a positive economic influence when the government spends money on the basic needs of the citizens, and as their growth is increased, it provides the necessary social support to the citizens to fulfil the services it wants to provide. In the form of the current development, the impact of poverty on the quality of life in the country is increasing but we will not try to explain it all. However, it is clear that the level of poverty and inflation does not contribute to the change in political policy on the ground. We do not try to explain it or solve the political problems that occur in the development of a country. Instead, it will appear
The Presentation
The following analysis of the data collected is based on an examination of various studies relating to social development, including the German, French, Spanish and Italian studies. It is based on national and subnational data collected from a national database on the economic development, health care services and social welfare of the citizens of the countries affected. The main analysis is that of the development of the political system between 1950 and 1970.
In addition, we consider that a small difference could affect a larger factor. With the exception of the economic reforms, there were small changes in the policies of one country during the two years of the present study that followed. The reason for the smaller changes was to try to explain the growth of economic forces by using a different economic system than the one that followed. This has been the case in Sweden, Norway and the Netherlands. In a single report on Sweden, the authors conclude that the growth of the “proletarian” economic forces followed a policy of expansion in the country following the “war of the proletariat”. The authors attribute the following:
The economic economic forces have developed around the country at different levels, depending on the economic policy.
It is clear that the growth of the growth forces is related to the political system developed during the past generation.
The growth of the growth forces results from the political system’s economic policies since the “war of the proletariat” in 1940. [2]
In fact, there exist very few economic transformations that followed the “war of the proletariat” in 1940 or later. In the first few years of the 1990s, most of the changes were in the following areas:
Economic policies are aimed at reducing the level of unemployment. The government has begun to focus on social welfare. The government tries to create jobs for the skilled workers.
The government has begun to focus on social welfare. The government tries to create jobs for the skilled workers. The government imposes taxes on the rich.
The government imposes taxes on the rich. The welfare system is based on national spending. [3]
In general, economic reforms usually involve large structural adjustments to the social structure. However, the change in the development of the social system is mainly at the level of “inflation” that has an impact on the level of growth of the economy. This means that in the current study economic changes are mainly linked to the political system because they are based on different political economic factors and because of a change of policy towards the same economic development. There is no way in which such changes are correlated with the economic system as a whole or, for example, if the expansion of the economy is accompanied by an increase in the level of inflation. The growth of the economic forces in the economic system is therefore attributed to the political economy of one country versus that of another country.
The current study does not provide a detailed analysis of economic factors and policies of different countries. Rather, it shows that change of policy towards the same economic development is not the result of a single factor but could have several possible factors, including the policies of different countries on the world market and local economies. It therefore concludes that the development of the political system in the country in the present study is the result of changing the political policy of one country toward the other. It should be mentioned that changes in policy by a central government which is dominated