Government Corruption Essay

1151 words - 5 pages

     Over the last few years, the issue of corruption--the abuse of public office for private gain--has attracted renewed interest, both among academics and policymakers. There are a number of reasons why this topic has come under recent inspection. Corruption scandals have toppled governments in both major industrial countries and developing countries. In the transition countries, the shift from command economies to free market economies has created massive opportunities for the appropriation of rents, excessive profits, and has often been accompanied by a change from a well-organized system of corruption to a more chaotic and deleterious one. With the end of the cold war, donor countries have placed less emphasis on political considerations in allocating foreign aid among developing countries and have paid more attention to cases in which aid funds have been misused and have not reached the poor. And slow economic growth has persisted in many countries with malfunctioning institutions. This renewed interest has led to a new flurry of empirical research on the causes and consequences of corruption.
Economists know quite a bit about the causes and consequences of corruption. An important body of knowledge was acquired through theoretical research done in the 1970s by Jagdish Bhagwati, Anne Krueger, and Susan Rose-Ackerman, among others. A key principle is that corruption can occur where rents exist--typically, as a result of government regulation--and public officials have discretion in allocating them. The classic example of a government restriction resulting in rents and rent-seeking behavior is that of an import quota and the associated licenses that civil servants give to those entrepreneurs willing to pay bribes.
More recently, researchers have begun to test some of these long-established theoretical hypotheses using new cross-country data. Indices produced by private rating agencies grade countries on their levels of corruption, typically using the replies to standardized questionnaires by consultants living in those countries. The replies are subjective, but the correlation between indices produced by different rating agencies is very high, suggesting that most observers more or less agree on how corrupt countries seem to be. The high prices paid to the rating agencies by their customers (usually multinational companies and international banks) constitute indirect evidence that the information is valuable. These indices are obviously imperfect owing to their subjective nature, but can yield useful insights.
Since the ultimate source of rent-seeking behavior is the availability of rents, corruption is likely to occur where restrictions and government intervention lead to the presence of such excessive profits. Examples include trade restrictions such as tariffs and import quotas, industrial policies such as subsidies and tax deductions, price controls, multiple exchange rate practices and foreign exchange...

Find Another Essay On Government Corruption

The Resistance to the Oppression of Corruption in Government

925 words - 4 pages and the rights of America’s citizens have been systematically eroded and in some cases stripped away. In the past decade alone, many groups have come together under a noble cause of ending the corruption in government, through peaceful protest, silent resistance and political movements. Irresponsible spending has caused many to question the competency of our leaders. The establishment of the Federal Reserve, a private corporation, that creates

The Gilded Age, it earned a reputation of widespread corruption in government and business, as well as persistent economic, social, and political problems facing the nation.

703 words - 3 pages In the years following Reconstruction, America changed from a country of farms into a nation of growing businesses, factories, and cities. Despite these changes, the decades of the Gilded Age earned a reputation of widespread corruption in government and business, as well as the failure of the era's Presidents to resolve the persistent economic, social, and political problems facing the nation.The rise of industry and business defined the period

Political Corruption

1508 words - 6 pages act performed by a politician to produce results which would have been otherwise impossible (Ebbe). In some cases, government, politicians, and criminals entwine for the sake of amassing money in order to secure their own jobs. This form of corruption was apparent in the mafia’s association with the government in the early 1900’s. Once government involvement takes place, the force foreign to the government gains enough power and evidence against

The Role of Corruption in Cambodia's Human Trafficking

1300 words - 6 pages The rule of law is vital for supporting a democratic society. Citizens rely on the government to protect its people through laws and good governance. However, corruption undermines government’s abilities to be accountable for the good of its people. Corruption as defined by Transparency International is “the abuse of entrusted power for private gains”. When governments are corrupt, they defer the rule of law and create greater inequalities

Corruption and Globalisation

4779 words - 19 pages center of media investigation report, or government inspection, even involved by certain international organisations as a result of conducting some of the unethical business practices, corruption could be the most common one. 2.1 Defining Corruption World Bank defines corruption as the abuse of power for private advantage. International corruption can be defined as following: International corruption is the set of all corrupt acts

International Trade and Corruption

2061 words - 8 pages enormous amount of the Gross National Product. There are a number of different approaches to fighting corruption as well as there are different causes of it. This essay paper argues openness to international trade has a positive effect in decreasing political corruption. Deriving from neoliberal ideas, international trade widens the scope of free market which results in less substantive powers for the government officials. Corruption flourishes

A Close Up View of Corruption and Integrity of Four Nations

1466 words - 6 pages are generally plagued with the worst of corruption. Corruption has gone way beyond what is typical or acceptable in Afghanistan. The continual catastrophe in Somalia has been caused by a succession of oppressive rulers and their terrible policies. Time and again placing in the least corrupt countries of the world are New Zealand and Sweden. The nations have managed to fight off corruption by having strong oversight of their government and most

Effects of Corruption on Economic Growth

517 words - 2 pages contracts through a corrupt system may lead to lower quality of infrastructure and public services.Then, Corruption may distort the composition of government expenditure. Corruption may tempt government officials to choose government expenditures less on the basis of public welfare than on the opportunity they provide for extorting bribes. Large projects whose exact value is difficult to monitor may present lucrative opportunities for corruption

Political Corruption in Bangladesh

3304 words - 13 pages practice corruption. Finally the paper will obviously talk about corruption in Bangladeshi government and business. Bangladesh emerged as its own country in 1971 when Bengali East Pakistan seceded from its union with West Pakistan (The World Fact Book). This double union emerged in 1947 (The Roots). The two regions separated by one thousand miles did not see eye to eye on many issues, thus resulting in the split in 1971. Bangladesh is a very

Is corruption a natural by-product of one-party rule in the PR China?

2768 words - 11 pages with negative phenomenon and unhealthy tendency within party and government departments. As a result, anti-corruption effort also includes fight against all of these phenomenon and behaviors.Corruption in current ChinaIt is widely held that corruption in china has increased to epidemic or even endemic levels since the advent of reform in the late 1970s.corruption is not a new phenomenon in china (Michael Johnston and Yufan Hao, 1993, pp. 80-94

Corruption in Education

1295 words - 5 pages university after named Abay takes the high positions. The Kazakhstani society needs that kind of persons who would tell the truth face to face without hiding. Otherwise, the fight against corruption will not go further. We cannot eradicate this problem. The consequences of the corrupt education are very predictable. Of course, as Rumyantseva states, first of all, the quality of education suffers the most. Secondly, the government does not implement

Similar Essays

Corruption In Us Government Essay

1972 words - 8 pages Government, for the current officials follow the same Constitution set up by those Patriots who fought the British. However, since the founding of the US Government there have been numerous cases in which the government has betrayed its people and committed corruption. When the media finds out about such a corrupt act, generally a scapegoat bears the entirety of the blame. In this paper I will argue that this is wrong, and in reality corruption occurs

Corruption In Eritrean Government Essay

1618 words - 6 pages In this paper I will discuss the recent history of Eritrea, its high-level of corruption and its material support to terrorist groups and goals of destabilizing both the Ethiopian government and the Transitional Federal Government of Somalia (TFG). Eritrea is a country that has, in the past and recent times, struggled economically, militarily, and also with maintaining good relations with its neighbors. The majority of its current issues can be

Government Corruption In The Third World

1326 words - 6 pages People in third world country’s suffer under the hands of their corrupt leaders things like this happen in the united states, but they are not as noticeable as they are elsewhere. In third world countries like Syria, there is a lot of injustice in many things especially in the government. In certain instances, they call themselves a democracy and don't let their people vote in important decisions. Government corruption is a huge problem that

The Dominican Republic Government And Corruption

1860 words - 7 pages Corruption has always been a problem built into institutions that hold power. Corruption is unavoidable in institutions that delegate the power. It would come with no surprise that every country has an institution which distributes or delegates the decisions that the country takes which in other words gives them power. One institution that could be used as an example of corruption would be the Dominican Government. Dominican Republics is