Pakistan is at 42nd number of corrupt countries according to Transparency International. It uses more then 7 surveys-Asian Development Bank, World Economic Forum Bank and World Bank- for results. Recent reports show that 5 billion was used in corruption in the current year. On top of corrupt departments are National Highways Authority, Pakistan Housing Authority, SECP, Ministry of Water and Power, WAPDA, PEPCO, Pakistan Steel, PIA
CAUSES OF CORRUPTION / RELATION
1. Relation with economic development
• Levels of economic development to effect petty bribes
2. Relation with economic liberalization
• Economic liberalization is good in a sense but leads the government to sell assets to politicians lower then market price.
• It may also facilitate corruption in the longer run if government fails to combat corruption
3. Relation with Democracy
• Democracy is least corruptive but depends upon how firmly rooted democracy is
• Opposition groups and press as a watch dog
• However, politicians buy off opponents, bribe voters and do corruption in tenders and huge projects
4. Relation with Free press
• Free press as a watch dog
• Freedom of press can be threatened by A) Persecution of journalist, B) Restricting the flow of information, C) Newspaper may be intimated, D) Imposition of strict laws
• However some journalist works like paid men of corrupts
5. Relation with Poverty
• Poverty is directly related with corruption
• Poor people have to bribe to get their legitimate rights
6. Relation with Gender
• Studies shows that A) women more likely to suffer fro corruption, B) are less corrupt then men, C) reduce level of corruption if given authority
7. Relation with low salaries
• Low irregular salaries are cause of corruption
• Most developing countries have huge number of public employees so low salaries.
• The choice for government is difficult as A) low salaries seems to encourage corruption but enable more people some kind of regular income
• B) A smaller, better paid bureaucracy may be less corrupt but huge unemployment
8. Relation with international trade
• Encourage smuggling tariff barriers are high
9. Relation with international corporations
• Present bribes to get favorable responses
• To get tenders and tax exemptions
10. Relation with Foreign Direct Investments (FDI)
• A factor of economic growth. Corruption discourages FDI
11. Relation with Offshore banking and tax havens
• Offshore banks keep the illegal money sage.
• For corrupt they offer three advantages; Customer Confidentiality, Outside the jurisdiction of mainland economies and the constitution status is ambiguous
12. Relation with Money Laundering
• Money laundering means cleaning the money and reinventing it in business as legal
• Three phases: Placement Phase, Layering Phase and Integration stage
13. Relation with International Crime
• Corruption exists wherever international crime