Corruption is the leading cause of social and economical evils in a country. It damages the ethic and morals of a civilization. Faces of corruption include extortion, scandals, forgery, embezzlement, bribery, and graft. The following are effects of corruption on economic growth:
Effects of corruption in politics, institutions and administration
When it comes to development, crime poses a significant threat to the development of a country. Democracy and good governance are undermined by corruption in politics, and it reduces accountability and erodes the institutional capacity in management. It also leads to unfair distribution in public administration positions.
Environmental and social effects of corruption
The vice encourages and facilitates environmental destruction in that those in the positions of leadership can be bribed to tamper with legislations that protect the environment. Corruption also leads to interfering with the social rights of workers protection, unions and child labour laws.
Corruption has a lot of economic effects on any type of business. Professional employees are covered up by corruption inflate employee ranks. When unqualified leaders get into power, they end up stealing hence, loss of resources.
No investor would like to invest with notorious and corrupt businesspeople. No one can buy shares from a corrupt company hence weakening its maturity. Fraudulent business practices also affect consumers’ trust, competition, and investors’ interest.
Corrupt business requires the intervention of the police department and anti-corruption agencies. Since corruption infiltrates all business levels, it ends up into the black market, which ends up supporting crimes. This promotes criminal activities since the black market also increase crime rates.
Some conditions are regarded as promoting corruption like weak judicial independence, poorly paid government officials lack government transparency, absence legal profession, and democracy. Corruption also promotes discrimination and illiteracy and lacking freedom of contempt for negligence and information legislation – read article on different kinds of corruption.