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Old Tuesday, January 19, 2010
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Smile Causes of corruption

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
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The Following 9 Users Say Thank You to rose_pak For This Useful Post:
dr.waris.saleem (Monday, November 01, 2010), nageen (Tuesday, January 19, 2010), nain jee (Thursday, August 04, 2011), Noor_2009 (Saturday, February 27, 2010), Nosheen Bukhari (Monday, September 10, 2012), nustian (Friday, August 05, 2011), Sajid Sadeem (Saturday, January 23, 2010), sumaira85 (Friday, January 22, 2010), Umme (Tuesday, January 19, 2010)