Effects of Corruption

Effects of Corruption

Introduction

Corruption is the act of an individual, political institution, or an organization benefitting from a material source that is not justifiable. Crime has negatively affected the economic and societal development of states. Therefore, there is a need to curb it before it gets out of hard. The effects of corruption on institutions of any country cannot be overlooked. Topmost institutions have failed to execute their obligated duties because of the long-term effects of crime. Due to the decline in economic and societal development of states. This paper aims at examining the possible impact of corruption, leading to these declines.

Violation of Civil and Political Rights

Corruption affects various bodies in such means defense of individual privileges are overlooked. It has been observed nations with advanced stages of dishonesty have minor stages of dogmatic and public rights (Kaufmann, 2004). Therefore, there is a possible undesirable association between exploitation and protection of one’s rights.

Reduced Economic Growth

            The decline in levels of investment, low investment quality, increased stages of unintended tax policy, and imbalance in the allocation of properties are some causes of corruption on economic growth of a state. There was a close relationship between the misallocation of resources, higher levels of indirect taxation, and corruption (Tanzi, 2001).

Increased Income Inequality

Due to the influence of corruption on growth levels, the gap between income levels increases, which further leads to poverty. The unfair tax system, inequality in education, and unequal ownership of assets have also led to such income gaps. (Gupta, 2002).

Conclusion

Corruption has been seen to cause a decline in economic growth, low investment levels, inequality in income levels, poverty, and possibly violating political and civil rights. Its effects cannot be overlooked, and therefore possible approaches to curb it must be implemented as far as the economic and societal development of every state is concerned.

References

Gupta, S., Davoodi, H. and Alonso-Terme, R. (2002) Does corruption affect income inequality and poverty? Economics of Governance 3(1): 23–45.

Kaufmann, D. (2004) Human rights and development: Towards mutual reinforcement. A paper prepared for a conference co-sponsored by the Ethical Globalization Initiative and The Center for Human Rights and Global Justice, New York University Law School, New York City.

Tanzi, V. and Davoodi, H.R. (2001) Corruption, growth, and public finances. IMF Working Paper 182.