The causes of corruption and the effects of corruption are vital societal concerns. Corruption is the abuse of entrusted power for private gain. Corruption results from a system of factors that facilitate and drive it. Therefore, the causes of corruption include political, economic, environmental, and social issues. There are two primary forms of corruption. First, grand corruption occurs at the top tiers of both public and private business. It often involves large sums of money and includes actors that make rules, policies, and executive decisions. Alternatively, petty corruption refers to the abuse of power in daily situations. Thus, the latter occurs at the interface between public institutions and citizens. Unfortunately, the effects of corruption are detrimental to the economic and political development of a society.
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THE INFLUENCERS AND CAUSES OF CORRUPTION
The causes of corruption are various interrelated issues. They include a lack of professional ethics and deficient laws regulating the vice as a criminal offense. Secondly, the lack of detection, prosecution, and sanctioning laws encourages its emergence and spread. Thirdly, weak internal controls such as financial management, auditing, and personnel systems are also facilitating conditions. Fourthly, the different forms of corruption are also affected by the monetary policy and indifferences in-laws interpretation. Lastly, it is also strongly influenced by the low salaries and the socio-economic situation of public administration employees. Notably, the nature of corruption is often slippery and multifaceted. It can evolve into new forms that criminal or administrative law does not capture. Therefore, anti-corruption practitioners emphasize prevention against the effects of corruption.
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THE IMPACT AND EFFECTS OF CORRUPTION ON THE ECONOMY
The effects of corruption have negative impacts on a country’s economy. First, it increases the volume of public investments at the expense of private investments. Secondly, it reduces the effectiveness of communal reserves and the infrastructure of a country. Thirdly, the vice decreases tax revenues by compromising the ability of the state administration to collect taxes and fees. Fourthly, it also affects the employment rate and the total return on investments. Fourthly, it reduces the effectiveness of various financial assistance programs, both state and international. Lastly, it undermines economic development and threatens state security. In conclusion, the varying forms of corruption inhibit economic growth and affect business operations, employment, and investments. Therefore, anti-corruption efforts should build and strengthen mutually-reinforcing systems against the causes of corruption.
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