1. Dr. Ali Turhani
Lectures of the Economy Faculty
University “Aleksander Xhuvani’, Elbasan, Albania

2. The decentralization process stimulate the corruption in the
different level of the management. The analysis of the fails from
this process in the free market create an effective base to
understand the way how the business organizations fails from
the corruption.
The three categories of the fails are :
1. Economy of scales
2. Undefined outputs
3. Externalities

3. The economy of scales create possibilities for corruptions. The
high level of the Managers in the share-holders Companies
make deals for their interests behind the shareholders back.
The incomes of the Companies are controlled from the
regulators commissions. It means that the dividend will be
distributed in an unlegal way, too.
This can be realized by the buying of the Inputs with higher
price as they are in reality.
This can be realized through the selling contracts of the
outputs to the other clients.

4. For a lot of outputs are very difficult to use indicators to
appreciate them. For this reason the corruption can have a lot
of space to act, because there is impossible to appreciate the
performance of the organization.
Such Companies are the research laboratories, the training
programmes, the artistic outputs etc.
The selecting and recruitment process of the labor force for
the company can stimulate the corruption from the people who
have to decide for this.

5. The private managers make compromises in production and the
selling of the different information . The corruption is present as
much times as a privatization process is developed by the public
authorities.
But the corruption can be developed in the field of the media, too.
For example when media hide critic facts of the public authorities, it
means that a corruption process is developed.
The corruption can be present in the field of media and in the cases
when journalists make pressure through the so-called compromised
fact over the public officials, with aim to take money from them.