Econ Final Of Question And Answer Over Global Issues

3070 words - 13 pages

Corruption is still a major issue around the world. It affects business practices; it can infect all forms of government and knows no economic distinction. Although, most of the time it is a national matter, it usually bears international consequences. Briefly please describe the four forms of corruption and give a global example to each form of corruption.
1.) Petty Corruption is a public and private agent agreeing on exchanging the access to the service for money, a gift, or the promise of a future favor. When a government official requires a small business to pay a bribe or they will shut down there operations. This occurs in many low income countries and makes it difficult for small businesses to compete and in turn costs the nation jobs and GDP. This in result lowers the worlds GDP as a whole.
2.) Administrative corruption is the institutionalized abuse of public resources by civil servants. This is a major problem in many developing countries such as Afghanistan, Bangladesh, and India as leaders will use resources meant to improve infrastructure, provide benefits, and much more for their own personal use such as travel, restaurant bills, and much more. This makes it difficult for these countries to improve conditions for their people and in turn raises inequality throughout the world.
3.) Corporate Corruption is committed by a corporation or an individual acting on behalf of a corporation. Bribery of public officials, commercial bribery, embezzlement, accounting fraud, and manipulation of the stock market are some examples of corporate corruption. Enron is an example of corporate corruption that occurred in the U.S but had a global impact as anybody who had invested in Enron lost vasts amount of money and Enron was a global trading company with many countries involved in their business dealings.
4.) Political Corruption is using position while in power to grant undue favor and benefit to one's relatives, friends, and key supporters. A high amount of political corruption occurs in countries such as Russia, Sudan, and Indonesia and often result in these companies losing opportunities for foreign aid on a global scale as developed countries become less inclined to aid these countries corrupt governments.

Essay Question # 2
Poverty is the state for the majority of the world’s people and nations. Poverty is another global issue that remains widespread, and is especially deep in developing nations. Alleviating poverty is critical to maintaining and strengthening regional and global stability. Developed and developing countries need to work together to make poverty history. Briefly please describe which nations/parts of the world are suffering from high poverty and why? What contributed to the recent poverty reduction? (Which organizations formed agreements to eradicate poverty and how is that plan working?) Also, please give specific examples as to what kind of recent progress have been made among the poorest countries of the world?
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