Corruption And Bribery In The Public Sector: Endemic Problems In Society

Bribery And Corruption

Bribery And Corruption

Forms of Corruption

 Bribery and corruption in the public sector is endemic and unavidable in all societies?

Bribery has always been considered as one of the oldest concept having a long past. Since recent times, it has highly been becoming an intense problem all across the globe. In reference with the concept of bribery, more often, there might be involvement of certain current governments or scandals of corruption in politics in the past. However, as there has been development and advancement in international trade, bribery has entered the parameters of international business as well (Basu, 2011). In addition to this, the concept of corruption seems to be involved in the private sector as well. In the private sector, corruption is known to be taking a number of different forms and bribery is one of these forms. Corruption results in distorting markets and have negative effect on the entire society. This essay will be discussing the issue of corruption and bribery within the public sector as being unavoidable and endemic in each and every society.

There is a list of four forms of the corruption. The number one form is grease payments and bribery. Bribery is the one form of payments sought by the officials of public or in another way offered by the agents of private company – in recovery for favours acting as the contract of the government. Payment of grease is the money given to the agents of public for do work that the agents of public are earlier paid for doing this, acting as publish a license (Basu, 2011).

In the second form there is grand and petty corruption. Corruption of petty is the concussion of an agent of public with a public member for corrupt the system over small transactions that are related to each other. It accordingly in many cases involves the public agent of lower level. Corruption of grand is the sabotage of the system by the agents of government at senior level, heads of state and ministers.

Bureaucratic corruption is the third form of the corruption. This the misconduct of responsibility by the agents for public to circumvent or bend regulations and rules in dealing for some benefits (Abbink, 2006). In occurs mainly in the areas where there are rewards of consideration and discretion of punishment under the control of an agent.

Last but not the least is the corruption in the political departments. This is the dealings of authority and influence by the leaders of political party and may increase to the favours of granting, no regularities in the financing of campaign and fraud of electoral.

There are five cImpact of Demandonditions that facilitate the corruption and they are listed below:

Political factors

Conditions of politics that encourage corruption include weal civil liberties, in a particular form the level of freedom of press, the strength of every citizens to design the organizations of civil society, and the level of competition of political structure. Accountability and lack of transparency also include by them on the part of agents of government especially where the state have been captured by the ruling elite (Abbink, 2004).

Conditions Facilitating Corruption

Bureaucratic factors

Bureaucratic factors include the extension of the bureaucracy of the state with increase of attendant in the powers of discretionary for the bureaucrats. Bureaucracy growth allows select every individuals to earn direct approach to resources of state and to enjoy the privileges of consideration associated with the office of administrative.

Legal factors

The quality of a legal system of country, in a particular form the circumstance of being punished and caught meaningfully, resolve the corruption level (Abbink, 2012). This is turn related to the presence of effective laws of anti-corruption, an independent judiciary and an effective police.

Economic factors

Economic development level affect the sectors and forms where corruption is very common. Corruption of petty is mainly common in countries that are developing while in the countries that are developed, when the incomes goes higher it means that the corruption influence to be of a large scale (Abbink, 2006).

Transnational factors

Even with achieving independence, most of the countries in development suffer from ‘new colonialism’ of the corruption so they deal with corruption of systemic introduced during their occupation or colonization (Apesteguia, 2007). Many of the big companies have thus given bribes to win business in the countries of third world.

Journalists, academics, businessmen, and politicians have been displaying an unusual unanimity when these contribute in condemning corruption as the probability of the most particular obstacles to the continuous growth in the economy across the globe. In the current era of globalization, the organizations of business along with their representative on frequent basis have been encountering the acts of corruption and can be considered as the simple participants, victims or perpetrators in these acts or actions (Barr, 2009). While there has been existence of international corruption in a number of different forms for a number of years, many international organizations, nations, organizations and individuals have currently been making attempts for the reduction or elimination of corrupt activities as these have harmful impact over the quality of life being maintained by the citizens and the economies at local level. A number of these types of efforts have resulted in being guided towards the supply- side of corrupt acts that is, the one making the payments of corruption.

A transaction of corruption, in the typical sense involves the side of supply, that is the one paying the bribe, and the side of demand, that is the one receiving the bribe. Recent efforts of anti- corruption contribute in primarily addressing the side of supply (Basu, 2011). However, there is huge concern towards a particular focus being created on the side of supply regarding the international corruption cannot be considered as being effective in detecting and preventing the network and links of corruption.

Irrespective of the stringent policies of the corporate world, managers have been showing temptation for doing whatever they consider important for closing a specific deal and then finding a way across in order to get caught. For a number of corporations, corruption and bribery are ranked amongst the highest significant risks and it has been found that there has been an increase in the prominence of these risks as well (Brenner, 2009).

Efforts to Reduce Corruption

Even though in the virtual sense, not even a single business is free from risks related with bribery and other payments that are corrupt, the risk is specifically high and significant for the multinational organization and those in certain industries such as extraction of resource, retail and construction. In majority of the cases of bribery, it has been found that there are more chances of small payments being made by ordinary people to the officials, such as an amount being provided to the policemen for expunging an infraction at minor level. While the condoning of these activities is difficult, these particular practices have been identified as basic element of economy in a number of different regions or areas (Buccirossi, 2006). From the perspective of corporate worlds, there are less chances of representing a significant level of concern or risk. Looking for solution and dealing with the issue of the economy is not an easy task. Paying and receiving bribes, along with other different types of facilitation benefits and fees, are a well- development element of business culture as well as the culture of government in a number of different parts across the globe.

And irrespective of increasing the rules, legislations, and their enforcement, the extent to which payments of corruption and bribery have not been declining. In majority of the organizations across different nations and economies, this problem has been seen to be increasing with the passage of time, rather than being reduced. Irrespective of implementing the highly stringent policies of corporate bodies, being tempted towards this activity is important for the closure of a specific deal and hence, finding a way across to get caught is always there (Gorodnichenko, 2007). In the most preferable manner, the risks that arise out of payments of corruption and bribery are not dealt with solely and in isolation but as a significant element of a complete process for identifying, monitoring and managing the number of different risks in the faces of corporation.

Conclusion

The concept of corruption seems to be involved in the private sector as well. In the private sector, corruption is known to be taking a number of different forms and bribery is one of these forms. Corruption results in distorting markets and have negative effect on the entire society. While there has been existence of international corruption in a number of different forms for a number of years, many international organizations, nations, organizations and individuals have currently been making attempts for the reduction or elimination of corrupt activities as these have harmful impact over the quality of life being maintained by the citizens and the economies at local level (Lambsdorff, 2007). From the perspective of corporate worlds, there are less chances of representing a significant level of concern or risk. Bribery is the one form of payments sought by the officials of public or in another way offered by the agents of the private company.

References

Abbink, K. (2004). Staff rotation as an anti-corruption policy: an experimental study. European Journal of Political Economy, 20(4), pp. 887–906.

Abbink, K. (2012). “Letting the Briber Go Free: An Experiment on Mitigating Harassment Bribes,” Working Paper. Available at SSRN: https://ssrn.com/abstract=2166221.

Abbink, K., (2006). Neutral versus loaded instructions in a bribery experiment. Experimental Economics, 9(2), pp. 103–121.

Apesteguia, J. (2007). Blowing the Whistle. Economic Theory, 31(1), pp. 143–166.

Barr, A. (2009). The effects of externalities and framing on bribery in a petty corruption experiment. Experimental Economics, 12(4), pp. 488–503.

Basu, K. (2011). “Why, for a Class of Bribes, the Act of Giving a Bribe should be Treated as Legal,” Ministry of Finance, Government of India.

Brenner, S. (2009). An empirical study of the European corporate leniency program. International Journal of Industrial Organization, 27(6), pp. 639–645.

Buccirossi, P. (2006). Leniency policies and illegal transactions. Journal of Public Economics, 90(67), pp. 1281–1297.

Gorodnichenko, Y. (2007). Public sector pay and corruption: Measuring bribery from micro data. Journal of Public Economics, 91(56), pp. 963–991.

Lambsdorff, J. G. (2007). “Fighting Corruption with Asymmetric Penalties and Leniency,” (No. 59). CEGE Discussion Paper.

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