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Examining the costs and benefits of
corruption in developing countries
1.7.2012
By Nabaz Shwany
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Special to
Ekurd.net |
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July 1, 2012
Corruption is a phenomenon that public good uses
for private gains. It happens in both private and
public sectors. In term of government it’s defined
as “the sale by government officials of government
property for personal gain”. Also, it can happen in
different ways and in different level from different
positions and different countries, but this
phenomenon is mainly widespread in developing
countries. Even though, corruption is a worm within
the body of society and cancer to economic and
political development; but it can also be used as
the cure for some people to sustain their life and
maintain their economic advantages.
The major coast of corruption is increasing poverty
and social and economic disparity because some
officials take the control of the country resources
and exploit public instead of distributing on
society and creating job opportunity to their
people. Because of corruption, Child mortality and
hunger endangered the life of millions. In Angola, 1
out of 5 children die before they reach their fifth
birthday and more than half of population lives with
$1.5 a day. Hence, corruptions create social class
and widen the gap between wealthy and poor and it
causes further problem. For instance, the corrupted
people send their sons and daughters to the world
best universities, and other cannot even support
their children to complete primary education. So,
not only in terms of finance, but corruption creates
disparity in education and other aspects of life.
Moreover, corruption distorted the economic growth
in developing countries and decelerates the paces of
reconstruction and rebuilding. It’s the main
obstacle of investment and discourages business.
Resource curse is another cost of corruption. Most
of the developing countries have massive oil reserve
and other natural resources, but that oil created
more problem and conflict rather than bringing
prosperity for people. For instance, in Angola and
Nigeria, oil is the main source for conflict, plus
corrupted politicians monopolized oil industry and
misappropriate public funds which created
bourgeoisie and widespread poverty.
The most dangerous effect of corruption is when
judiciary is corrupted. Law and justice is the base
for development, justice, and civil society, but in
developing countries corrupted people uses law to
justify their illegal behaviors. For instance, In
Burma when there is legal cases “Payments occurs to
get a case registered, to get it lodged in court, to
get it heard as scheduled, to receive copies of
documents, to secure a conviction or acquittal, to
get the case accepted on appeal, and so on”.
Furthermore, in other developing countries there are
many cases that government officials cooperatewith
gang groups and Mafias. For instance, in Iraq they
steal and sell petrol in black market, mostly
ministers, Parliament members and other government
officials involve in this business. Also, in Sudan
officials support gang groups instead of exciting
law and justice and encourage them to kill innocent
people and steal public resources. That is clearly
happening in Darfur were hundreds been killed by
pro-government militias. Further, its also argued
that in Colombia and Mexico officials have direct
relationships with drug trailer to get certain
concession without considering their moral
responsibility and side effects on public.
Lacks of health care, education, school,
infrastructure, social protection, regulation,
routine are primarily consequences of corruption in
developing world. The corrupted government
experience shortage in budget. Besides, government
is unable to provide education and schools
particularly in rural areas. Other infrastructures
like electricity, water supply, high ways, rail
ways, sewage and so on. Thus, government unable to
sustain, support and enhance the living condition.
Also, corruption destroys love and patriotism. In
the corrupted countries, people have no respect and
trust to their government and have no desire to
protect their countries from external threats. In
contrast, they weaken their government and act
accordingly as we have seen in the corrupted Egypt
and Tunisia where people toppled their autocratic
corrupted governments.
For the benefits, corruption can be used as a method
to unite different political, ethnic, religious, and
economic groups. Regardless to their differences,
when there is corruption, conflict actors and people
with different opinion and different political
background come together and uphold their
relationships in order to preserve their economic
advantages. Thus, corruption is the key player in
managing the problems in developing countries.
Another advantage of corruption is transferring
wealth and capital from upper class to the lower
class. It can help people to find alternative way to
secure their lives. So, some people can simply
survive through corruption. It was three weeks ago
that I asked my friends from Somalia whether he
become corrupted if he takes position in the future
or not, he honestly said “yes, without corruption,
you wouldn’t survive”. So, we understand that
corruption has advantages for some and poor people
may get their share from the country revenue. I have
seen solders and government employers who become
rich through corruption and grossed large amount of
money within a very short time. Obviously, solders
and employers in check points and government
administrations especially those that have
relationship to the people’s daily live can easily
get money with coordination to other officials who
mostly back them in case they have been caught. So,
straightforwardly corruption helps to be rich
swiftly.
Nepotism is another aspect of corruption that can be
seen in developing countries. Perhaps, when you have
a cousin in one of the government administrations,
this person may find place for most his/her family
members and through them to others. So, it can help
to drop unemployment rate in developing countries.
On the other hand, corrupted person can promote
their position by giving bribes and kickbacks. That
happens especially during the elections in
developing countries. The candidates will try to
steal money from public and redistribute their
wealth on their supporters and buy their votes. This
illegal dealing has mutual benefits for both sides.
To justify corruption,www.ekurd.net
Andrese Rune argues that individuals are more likely
to make their decisions to be corrupted if they
sought the benefits will exceed the coasts (Rune,
2011, p.24). So, what he means is if the benefits
larger than costs it would be okay to do so. In
developing countries the organizational culture and
government administrators don’t respect their
client. They treat them in a very harsh and
disrespectful way. Though, when you pay bribes or
when you use connection, you will gain favorable
treatment, cut bureaucratic corners or to bribe
their way to contracts in order to enhance
competitiveness and gain market shares or other
business advantages.
Giving Bribes also work effectively in both private
and public business. In developing countries the
bureaucracy is so weak to fulfill the demands of
people. Besides, there are large scales of routine
and red traps, employers are not abiding by their
duties and make things difficult to their clients.
However, bribery and corruption will facilitate
things. In the other word, you will get what you
have paid for in a very short time and without any
difficulties. In business perspective, corruption
could motivate investment. According to the
International Crises Groups, bribes were given to
the insurgent groups in Kabul to guarantee security
insurance for the development projects. So, here it
can help business and continuing private and public
activities. You pay an amount of money to terrorist
or trouble makers group in regard to achieve
security to maintain your project and apply your
development programs. This is one way to run
business appropriately.
In a nutshell, corruption is more dangerous than
HIV, Malaria and terrorism. It causes many problems.
The coasts of corruption are many but the major
disadvantages are poverty, inequality, child
mortality, budget shortage, destroying economic
development and infrastructure, mistrust between
government and people, discouraging business and
investment, misusing natural resources, lockage of
public service, deregulation, weak bureaucracy and
weak rule of law. However, for some people it has
benefits. Corruption can solve ethnic and religious
conflicts and persuade conflict groups to get
closer. Besides, it helps to redistribute wealth and
equalize social class and reduce unemployment rates.
In addition, people can be rich so fast without
taking any hardness and efforts to do so. Due to the
high routines and managerial problems in developing
countries, people cannot do their works easily in
government bureaucracy, but through bribes,
kickbacks and other corruption means, they can get
things done.
Nabaz Shwany, Bachelor in Politics and
International Relations at the University of
Kurdistan-Hewler. Currently, he is a Master student
at the school of Government and International
Studied, Public Management Department, University of
Utara, Malaysia. Nabaz Shwany is a regular
contributing writer for Ekurd.net, May 10, 2012.
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© 2012 Ekurd.net. All rights reserved
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