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Political corruption is the use of legislated powers by government officials forillegitimate private gain.Forms of corruption vary, but include bribery, extortion, cronyism, nepotism,patronage, graft, and embezzlement.

Effects on politics, administration, and institutions

Economic effects

Corruption undermines economic development by generating considerabledistortions and inefficiency. In the private sector, corruption increases the cost ofbusiness through the price of illicit payments themselves, the management cost ofnegotiating with officials, and the risk of breached agreements or detection.

Corruption also generates economic distortions in the public sector by divertingpublic investment into capital projects where bribes and kickbacks are more plentiful.

Environmental and social effects

Corruption facilitates environmental destruction. Corrupt countries may formally havelegislation to protect the environment, it cannot be enforced if officials can easily bebribed. The same applies to social rights worker protection, unionization prevention,and child labor. Violation of these laws rights enables corrupt countries to gainillegitimate economic advantage in the international market.

Effects on Humanitarian Aid

The scale ofhumanitarian aid to the poor and unstable regions of the world grows,but it is highly vulnerable to corruption, with food aid, construction and other highlyvalued assistance as the most at risk.

Types

Bribery

A bribe is a payment given personally to a government official in exchange of his useof official powers. Bribery requires two participants: one to give the bribe, and one totake it.

Trading in influence

Trading in influence, or influence peddling in certain countries, refers to the situationwhere a person is selling his/her influence over the decision process involving a thirdparty (person or institution). The difference with bribery is that this is a tri-lateralrelation.

Patronage

Main article: Patronage

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Patronage refers to favoring supporters, for example with government employment.

Nepotism and cronyism

Main articles: Nepotism and Cronyism

Favoring relatives (nepotism) or personal friends (cronyism) of an official is a form ofillegitimate private gain.

Conditions favorable for corruption

It is argued that the following conditions are favorable for corruption:

Information deficitso Lack of government transparency.

o Lacking freedom of information legislation. The Indian Right to

Information Act 2005 has "already engendered mass movements in thecountry that is bringing the lethargic, often corrupt bureaucracy to itsknees and changing power equations completely."[11]

o Lack of investigative reporting in the local media.

o Contempt for or negligence of exercising freedom of speech and

freedom of the press.o Weak accounting practices, including lack of timely financial

management.o Lack of measurement of corruption. For example, using regular surveys

of households and businesses in order to quantify the degree ofperception of corruption in different parts of a nation or in differentgovernment institutions may increase awareness of corruption andcreate pressure to combat it. This will also enable an evaluation of the

officials who are fighting corruption and the methods used.o Tax havens which tax their own citizens and companies but not those

from other nations and refuse to disclose information necessary forforeign taxation. This enables large scale political corruption in theforeign nations.[12][citation needed]

Lacking control of the government.o Democracy absent or dysfunctional. See illiberal democracy.

o Lacking civic society and non-governmental organizations which

monitor the government.o An individual voter may have a rational ignorance regarding politics,

especially in nationwide elections, since each vote has little weight.o Weak civil service, and slow pace ofreform.

o Weak rule of law.

o Weak legal profession.o Weakjudicial independence .

o Lacking protection ofwhistleblowers.

o Lack ofbenchmarking, that is continual detailed evaluation of

procedures and comparison to others who do similar things, in thesame government or others, in particular comparison to those who dothe best work. The Peruvian organization Ciudadanos al Dia has startedto measure and compare transparency, costs, and efficiency indifferent government departments in Peru. It annually awards the best

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practices which has received widespread media attention. This hascreated competition among government agencies in order to improve.[13]

Opportunities and incentiveso Individual officials routinely handle cash, instead of handling payments

by giro or on a separate cash deskillegitimate withdrawals from

supervised bank accounts are much more difficult to conceal.o Public funds are centralized rather than distributed. For example, if

$1,000 is embezzled from a local agency that has $2,000 funds, it iseasier to notice than from a national agency with $2,000,000 funds.See the principle of subsidiarity.

o Large, unsupervised public investments.

o Sale of state-owned property and privatization.[citation needed]

o Poorly-paid government officials.

o Government licenses needed to conduct business, e.g., import

licenses, encourage bribing and kickbacks.o Long-time work in the same position may create relationships inside

and outside the government which encourage and help concealcorruption and favoritism. Rotating government officials to different

positions and geographic areas may help prevent this; for instancecertain high rank officials in French government services (e.g.treasurer-paymasters general) must rotate every few years.

o Costly political campaigns, with expenses exceeding normal sources of

political funding, especially when funded with taxpayer money.o Less interaction with officials reduces the opportunities for corruption.

For example, using the Internet for sending in required information,like applications and tax forms, and then processing this withautomated computer systems. This may also speed up the processingand reduce unintentional human errors. See e-Government.

o A windfall from exporting abundant natural resources may encourage

corruption.[14](See Resource curse)o War and other forms of conflict correlate with a breakdown ofpublic

security. Social conditions

o Self-interested closed cliques and "old boy networks".

o Family-, and clan-centered social structure, with a tradition of

nepotism/favouritism being acceptable.o A gift economy, such as the Chinese guanxi or the Soviet blat system,

emerges in a Communist centrally planned economy.o In societies where personal integrity is rated as less important than

other characteristics (by contrast, in societies such as 18th and 19thcentury England, 20th centuryJapan, and post-war western Germany,where society showed almost obsessive regard for "honor" andpersonal integrity, corruption was less frequently seen)[citation needed]

o Lacking literacy and education among the population.

o Frequent discrimination and bullying among the population.o Tribal solidarity, giving benefits to certain ethnic groups

In what kind of environment does corruption thrive?

Corruption can grow in a variety of political and economic environments but it thriveswhen bad government makes it impossible to control. While the importance ofdifferent factors can vary from place to place and from time to time, it seems that,for corruption to flourish, certain key pre-conditions are necessary:

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1. A set of imperatives and incentives which encourage politicians and officials toengage in corrupt transactions, which include low and irregular salaries forofficials with large dependent families. Such officials may feel compelled tobecome corrupt, and political instability and economic uncertainty encouragespoliticians to exploit current opportunities. Very few African officials cananticipate lifelong job security or a guaranteed pension.

2. The availability of multiple opportunities for personal enrichment. Someeconomic environments are much more conducive to corruption, in particularmineral and oil rich environments are more fertile territories than subsistenceagriculture. The size and growth of public spending will help define thepossibilities for corruption. Where there is extensive discretion over theallocation of economic costs and benefits.

3. Access to and control over the means of corruption. Motive and opportunitycreate the possibility but there have to be ways of actually engaging incorruption. These might include control over an administrative process suchas tendering or having access to offshore accounts and the techniques ofmoney laundering.

4. Limited risks of exposure and punishment. Corruption will thrive where thereare inadequate and ineffective controls (both internal and external). Policing,detection and prosecution encourages corruption. Where the media arecontrolled and censored, corrupt politicians and officials have less to fear.

The incidence of corruption is a result of the strength of incentives, the range andscale of opportunities, the availability of means and the risks of punishment.Corruption thrives on bad governance where controls are weak and decision-makingis opaque, arbitrary and lacking in accountability mechanisms. It is therefore morelikely to flourish in dictatorships than democracies and where there are extremeinequalities of wealth and power.

How does corruption affect people's lives?

When corruption is pervasive, it permeates every aspect of people's lives. It can

affect the air they breathe, the water they drink and the food they eat.

Environmental corruption can result in the over-exploitation of natural resources withthe result that air is polluted, rivers are poisoned and land is contaminated.

Poor people in developing countries frequently find that their lives are made evenharder by corruption:

If they need public housing, they never get to the top of the waiting listbecause corruption enables some people to 'jump the queue'.

If they want access to utilities - electricity and water - they may find thatsupplies are only forthcoming if a bribe is paid to the appropriate officials.

They may also experience disruption of supply due to defects in theconstruction of the pipeline: the contract for which was given not to the bestqualified contractor but to the one who paid the best bribe.

If they want their children to go on to secondary school, they may find thatthe headteacher insists on a special personal payment.

If they fall ill, they find that primary health care is inadequate because budgetfunds have been re-directed to buying defence equipment. These purchasesare almost invariably surrounded by 'commission payments' and bribes.

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If they actually see a nurse or doctor, the medical staff may demand extrapayment and if they need drugs, they often discover that there is a shortagebecause of 'leakage' to the black market.

When seeking public sector employment, they may discover that jobs arebought and sold like other commodities.

Once in employment, transfers and promotions may also be subject to the

payment of bribes to superior officials. If they want to start a small business - a market stall or taxi service - they

often find that the required permits and licences are only available after abribe has been paid.

When corruption is at a low level, its impact is correspondingly reduced and manypeople in developed countries may be unaware of its consequences.