Effects of Corruption.
Introduction
Corruption is a form of dishonesty or fraud conducted by those in power or leadership positions, usually in the form of bribery. The effect of corruption is found in a wide range; some are fairly obvious while the other needs some explanation. Some of these effects get discussed below:
Economic loss and inefficiency is the first impact of corruption. Though it is difficult for a country to obtain the exact economy figures on corruption, a report of 2016 from the international monetary fund’s estimated cost of bribery, the results were found to be approximately 2% loss on the global gross domestic product (GDP), without taking into account economic cost of all forms of corruption (Bayley & David,1966).
Also, when jobs are given to people who share a personal connection with all those who give bribes, the results are that more qualified people and firms are turned down, and as a result, the economy becomes more inefficient. When government funds are being disbursed in developing countries, humanitarian activities are derailed as funds are taken by inferior contractors whose intentions benefit themselves. This results in the deterioration of the economy (Gould David & Jose Amaron Reyes, 1983).
Personal loss, intimidation, and inconvenience stem from corruption. Corruption is everywhere; when an individual wants to receive medical attention, pick up a package, enjoy phone service, obtain a building permit, get a job, corruption is involved. When a judge judges a court of law, he rules out not because there were justices but because a bribe was involved. A person might be beaten by the police or detained, not because he was wrong since he refused to offer a bribe. All this leads to intimidation, personal losses, and inconveniences (Bakare & Adewale Stephen, 2011).
References
Bayley, David H. “The effects of corruption in a developing nation.” Western political quarterly 19.4 (1966): 719-732.
Gould, David J., and Jose A. Amaro-Reyes. “The effects of corruption on administrative performance.” World Bank Staff Working Paper 580.2514 (1983)
Bakare, Adewale Stephen. “The crowding-out effects of corruption in Nigeria: An empirical study.” Journal of Business Management and Economics 2.2 (2011): 059-068.