CORRUPTION
CONSEQUENCES OF CORRUPTION
1. Impact on growth and development
Delays, disrupt and diverts growth and development
Spending diverted from productive programs to big projects which increases probability of corruption
2. Impact on Poverty eradication
Excessive government borrowing, high inflation
Reducing poverty requires strong financial, administrative and regulatory institutions
3. Impact on Human Rights
Corruption in all forms is itself violation of Human Rights
4. Impact on environment
Undermines environmental protection
Promote frauds, violate international agreements, Bypass inspection
5. Impact on private sector development
Distort the market
Illegitimacy of tendering process
6. Impact on development assistance and aid flows
International donors divert donations
However they think that despite of corruption, some money reaches the needy and they cant do anything to stop corruption
7. Economic cost of corruption
8. Political Cost of corruption
9. Social/Cultural cost of corruption
What is CPI?
Corruption Perception Index is a league table of international corruption shows the least corrupt country at top and most at bottom (10-0) established by Transparency International in 1995. Bribe Payers Index was established in 1998. However some weaknesses are; perception that responders are accurate and representative, perception may not reflect actual, different type of surveys for different countries.
Why anti-corruption laws are not always enforced?
No political will
Poorly drafter laws
Non availability of information and resources
Enforcement requires: A) effective auditing and monitoring institutes, B) well trained police force, C) independent and honest judiciary
HOW TO TACKLE CORRUPTIONS
China, 2 officers of Food and Drug administration sentenced to death accused of taking bribe of $300,000 and $850,000 in 2007. Vietnam, National Assembly Standing Committee rejected removing death penalty for corruption. Russian court is to decide on death penalty after 10 years of moratorium.
We should have a mechanism to clear mess of 63 years.
Professional and autonomous NAB or Commission is needed.
An international treaty like China did, is needed to extradite corrupt from other countries. China have this agreement with 25 countries but not with USA, UK and Canada.