Corruption occurs when
organizations or individuals profit improperly through their positions in an
activity, and thereby cause damage or loss. Corruption can be found in all
countries but it particularly wide spread in states where the legal system, mass
media and public administration are weak or undeveloped for example when public
servants extract illegal fees from general public.
Corruption always means that money is paid upwards i.e., to those who already
have positions, power and, money. It severely affects those people who are
really poor. Corruption is an abuse of public power for personal ends. In my
opinion, corruption should be approached from point of view of the effects it
has on development. Corruption is one of the major obstacles to progress and
that it has effects on development are disastrous.
If we analyze some of the effects that corruption has on development, the first
thing we notice is that it increases the cost of goods and services and not
insignificantly either.
Although a 5% reduction in the profit margin might at a pinch , be absorbed by
the supplier, corruption levels of 10% to 20% , which have become common place ,
will inevitably be reflected in the price and will consequently , be paid for
through the national and foreign (in case of foreign aid) resources of a country
.
It is therefore the national economy that ultimately suffers those consequences
of an unjustified surcharge on goods or service with the difference being
pocketed by some government official or politicians who use his power for his
own personal gain. Given that such operations are generally financed by bank
loans or in case of foreign aid by concessional loans, these surcharges
inevitably bring about a proportionate increase in the country's debt.
In-fact it is now assumed that the exchange values of sums paid out in bank
handlers make up a considerable proportions of the foreign debts. Developing
countries.
The corrupt decision-maker may well be tempted to accept a sustranded quality of
services which will make his personal profit all gathers. The disastrous effects
of corruption mean that the conception of a project and ultimately its very
choice, are determined by corruption. As far as conception is concerned, a good
example would be the purchase of a technology which is wholly unsuited to the
particular needs of a country is more lucrative in terms of corruption. Rather
than a labor-intensive one which would nevertheless be far more beneficial to
that nations development.
Note: This Article Won Prize Money of 5,000 From Intermediate Board Of
Education.