Basics of Corruption
What is corruption?
Corruption is the abuse of entrusted authority for private gain.
What types of corruption there are?
“Corruption” is way too big to grasp, to attach. We can distinguish not only between the size of the problem but between types of corruption as well.
- Localized corruption is where corruption is concentrated in a few institutions or regions or levels of government; endemic corruption indicates a problem throughout the public sector.
- Organized corruption incorporates a number of officials within an organization or across organizations taking part in and sharing the gains from routine corruption.
- Anarchic corruption takes place opportunistically, on a case by case basis.
- Administrative corruption refers to generally smaller-scale abuse. Grand or Elite Corruption typically involves higher level officials, greater sums of money, and usually greater discretion (power).
- State capture refers to the ability to effectively “purchase” laws and regulations that favor specific elite interests and raises issues such as the need for transparency in political party financing. Predatory States are ones in which the state itself preys on businesses and citizens rather than selling that right to the private sector.
Whom does corruption affect?
Corruption affects everyone, but primarily the poor. Particularly, corruption in public services affects the poor in two ways: a) the poor are the ones who use more of public services. The rich have alternatives (schools, education, electricity, etc.); and b) payments in bribes represent a larger share of annual income to the poor than to the rich. For the rich, paying a bribe might be a small amount to “get things done”. For the poor, it represents a vital portion of their income.
What are the consequences of corruption?
- Corruption destroys citizens' trust in government Corruption invalidates government's legitimacy
- Corruption undermines economic growth
- Corruption weakens public service delivery
- Corruption exacerbates poverty
- Corruption creates openings for organized crime, terrorism, and conflicts