Impacts of corruption n definition


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Impacts of corruption n definition

  2. 2. WHAT IS CORRUPTION?  Definition of Corruption  Corruption is dishonest actions that destroys people's trust in the person or group, like the news of corruption in how your bank is run, that makes you close your account and invest your money somewhere else.  The noun corruption comes from Latin — com, or "with, together," and rumpere, meaning "to break." Corruption breaks your trustworthiness, your good reputation with others, like the news of corruption in the mayor's office that shocked everyone. When you corrupt something that is pure or honest, you take away those qualities. That's why "corruption of minors" is a serious offense in our legal system.  Kamus Besar Bahasa Indonesia (KBBI) defines corruption as ― misappropriation or misuse of state funds (companies, etc.) for personal gain or other person  Transparency International (TI) defines corruption as ― ― The misuse of entrusted power for private gain‖  Oxford Dictionary defines corruption as ― ―Perversion or destruction of integrity in the discharge of public duties by bribery or favour.‖  Corruption is a broad term covering a wide range of misuse of entrusted funds and power for privat gain: Theft, fraud, nepotism, abuse of power, etc. (  dr. Petrus van Duyne defines corruption as ― Corruption is an improbity or decay in the decision-making process in which a decision-maker consents to deviate or demands deviation from the criterion which should rule his or her decision-making, in exchange for a reward or for the promise or expectation of a reward, while these motives influencing his or her decision-making cannot be part of the justification of the decision.
  3. 3. KIND OF CORRUPTION  AUTOGENIC   DEFENSIVE   No direct transfer of money. Just preferential treatment to relatives and friends. SUPPORTIVE   For future reward and no direct favor in present. NEPOTISTIC   This is compensation in exchange for services. INVESTIVE   Compulsive in nature and victims pay bribes in self defense. EXTORTIVE   Self generating and involves only perpetrator It supports the existing corrupt system. TRANSACTIVE  Involves both parties and the advantage is for both.
  4. 4. CATEGORIES OF CORRUPTION  INDIVIDUAL CORRUPTION   Only a single person or official is involved in practicing bribing. This type is corruption can be seen in government offices and institutions. GROUP CORRUPTION  A group of people work as unit to practice bribing.
  5. 5. CAUSES OF CORRUPTION             Absolute authority Ineffective/antiquated and overburdened legal system Ineffective anti-corruption mechanisms In adequate enforcement Lack of employment Privatization, Liberalization and Globalization Diminishing values in the society. Diminishing patriotism. Lack of awareness. Low literacy rate. Lack of effective management. Lack of economic stability.              Lack of effective political leadership. Lack of effective management and organisation. Lack of economical stability. Lack of support. Lack of values. Lack of love for country Lack of satisfaction Lack of autonomy Lack of good control and vigilance Lack of good remuneration Lack of employment. Lack of seats and educational institutions Etc.
  6. 6. EFFECTS/IMPACTS ON POLITICS, ADMINISTRATION, AND INSTITUTIONS INTRODUCTION  In political sphere, corruption impedes democracy and the rule of law. In a democratic system, public institutions and offices may lose their legitimacy when they misuse their power for private interest. Corruption may also result in negative consequences such as encoring cynicism and reducing interest of political participation , political instability , reducing political competition, reducing the transparency of political decision making, distorting political development and sustaining political activity based on patronage, clientelism and money, etc.
  7. 7. ECONOMIC EFFECT  In the private sector, corruption increases the cost of business through the price of illicit payments themselves, the management cost of negotiating with officials and the risk of breached agreements or detection. Although some claim corruption reduces costs by cutting bureaucracy, the availability of bribes can also induce officials to contrive new rules and delays. Openly removing costly and lengthy regulations are better than covertly allowing them to be bypassed by using bribes. Where corruption inflates the cost of business, it also distorts the playing field, shielding firms with connections from competition and thereby sustaining inefficient firms.  Corruption also generates economic distortions in the public sector by diverting public investment into capital projects where bribes and kickbacks are more plentiful. Officials may increase the technical complexity of public sector projects to conceal or pave the way for such dealings, thus further distorting investment. Corruption also lowers compliance with construction, environmental, or other regulations, reduces the quality of government services and infrastructure, and increases budgetary pressures on government.  The economic effects of corruption can be categorized as minor and major. However, both in one way or the other have serious impact on the individual community and country. First and foremost, corruption leads to the depletion of national wealth. It is often responsible for increased costs of goods and services, the funneling of scarce public resources to uneconomic high profile projects at the expense of the much needed projects such as schools, hospitals and roads, or the supply of potable water, diversion and misallocation of resources, conversion of public wealth to private and personal property, inflation, imbalanced economic development, weakling work ethics and professionalism, hindrance of the development of fair in market structures and unhealthy competition there by deterring competition. Large scale corruption hurts the economy and impoverishes entire population.
  8. 8. ENVIRONMENTAL AND SOCIAL EFFECT  Corruption facilitates environmental destruction. Corrupt countries may formally have legislation to protect the environment, it cannot be enforced if officials can easily be bribed. The same applies to social rights worker protection, unionization prevention, and child labor. Violation of these laws rights enables corrupt countries to gain illegitimate economic advantage in the international market. The Nobel Prize-winning economist Amartya Sen has observed that "there is no such thing as an apolitical food problem." While drought and other naturally occurring events may trigger famine conditions, it is government action or inaction that determines its severity, and often even whether or not a famine will occur. Governments with strong tendencies towards kleptocracy can undermine food security even when harvests are good. Officials often steal state property. In Bihar, India, more than 80% of the subsidized food aid to poor is stolen by corrupt officials. Similarly, food aid is often robbed at gunpoint by governments, criminals, and warlords alike, and sold for a profit. The 20th century is full of many examples of governments undermining the food security of their own nations – sometimes intentionally.  In Social sphere, corruption discourages people to work together for the common good. Frustration and general apathy among the public result in a weak civil society. Demanding and paying bribes becomes the tradition. It also results in social inequality and widened gap between the rich and poor, civil strive, increased poverty and lack of basic needs like food, water and drugs, jealousy and hatred and insecurity.
  9. 9. Effects on Humanitarian Aid  The scale of humanitarian aid to the poor and unstable regions of the world grows, but it is highly vulnerable to corruption, with food aid, construction and other highly valued assistance as the most at risk. Food aid can be directly and physically diverted from its intended destination, or indirectly through the manipulation of assessments, targeting, registration and distributions to favour certain groups or individuals. Elsewhere, in construction and shelter, there are numerous opportunities for diversion and profit through substandard workmanship, kickbacks for contracts and favouritism in the provision of valuable shelter material. Thus while humanitarian aid agencies are usually most concerned about aid being diverted by including too many, recipients themselves are most concerned about exclusion. Access to aid may be limited to those with connections, to those who pay bribes or are forced to give sexual favours.
  10. 10. Other areas: health, public safety, education, trade unions, etc.  Corruption is not specific to poor, developing, or transition countries. In western countries, cases of bribery and other forms of corruption in all possible fields exist: under-the-table payments made to reputed surgeons by patients attempting to be on top of the list of forthcoming surgeries, bribes paid by suppliers to the automotive industry in order to sell low-quality connectors used for instance in safety equipment such as airbags, bribes paid by suppliers to manufacturers of defibrillators (to sell low-quality capacitors), contributions paid by wealthy parents to the "social and culture fund" of a prestigious university in exchange for it to accept their children, bribes paid to obtain diplomas, financial and other advantages granted to unionists by members of the executive board of a car manufacturer in exchange for employer-friendly positions and votes, etc. Examples are endless. These various manifestations of corruption can ultimately present a danger for the public health; they can discredit specific, essential institutions or social relationships.  Corruption can also affect the various components of sports activities (referees, players, medical and laboratory staff involved in anti-doping controls, members of national sport federation and international committees deciding about the allocation of contracts and competition places).  Cases exist against (members of) various types of non-profit and non-government organisations, as well as religious organisations.  Ultimately, the distinction between public and private sector corruption sometimes appears rather artificial, and national anti-corruption initiatives may need to avoid legal and other loop holes in the coverage of the instruments.  In our society, the impact of corruption is often manifested through political intolerance, problems of accountability and transparency to the public, low level of democratic culture, principles of consultation and participation dialogue among others.
  11. 11. IMPACTS OF CORRUPTION ,And so much more…
  12. 12. Sources what-are-the-effects-of-corruption&catid=7%3Afaq&Itemid=7&lang=en
  13. 13. Thank You for Your Attention