• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

"Corruption and hypocrisy ought not to be inevitable products of democracy, as they undoubtedly are today" Discuss.

Extracts from this document...

Introduction

CORRUPTION "Corruption and hypocrisy ought not to be inevitable products of democracy, as they undoubtedly are today" (M. Gandhi) We all have heard a lot about corruption and all of us have an idea what corruption is but not all of us have the same opinion about it. It is a broad consensus that corruption is bad thing. It promotes the interests of the few over the many. For example giving extra money to a nurse to help a mother to deliver her baby is called corruption; bribing a doctor to ensure your son to get the medicine is called corruption; using the public construction equipment to construct a private house is called corruption. Using the advantages of being a government official for allocating the public resources and fulfilling your personal greediness is also corruption. All the examples may be classified as corruption. If you go through of all of these examples you first think that corruption can damage some people and can make some other better off and some other could not be affected. This is not true. Even that you are not involved to corruption, it affects you and all society. ...read more.

Middle

The World Bank estimates the cost of corruption accordingly: if just 5% of the value of all direct foreign investment and imports go into countries with extensive corruption, the yearly take would total around US $80 billion. Many developing countries try to attract foreign direct investment (FDI) using different promoting policies like soften taxes. Developing countries have the advantage of being labor abundant so the labor is cheap attracting more the foreign direct investment. However, mainly local corruption may discourage more there investment than what cheap labor or generous taxes can attract. Shang-Jin Wei in his study "Local Corruption and the Global Economy" using data on a matrix of bilateral FDI from 14 source countries to 41 host countries, found the negative correlation between corruption, specially local corruption and FDI. Its negative effect on inward FDI, for example, can easily offset a generous tax giveaway typical in developing countries. He found that the host government's corruption level in Singapore and in Mexico has the same negative effect on inward FDI as if the tax rate increases by 42 percentage points. Corruption affects the private domestic investment as well. ...read more.

Conclusion

* Building a transparent system, easy to controll etc. One step is empowering the public and bringing in greater transparency 3. Important for a small country like Albania is increasing the incentives of the public and NGO participating in the reform against the phenomen. Some of the priorities are: * Increasing the conscience of the Albanian society for the causes and the damages the corruption has on the society. NGO should be very helpful in this direction. * Participating in the implementation of the reforms and measures for reducing the corruption. * Encouraging the public with such objectives like association stabilization and the participating in the big family of Europe (EU), hence increasing their incentives to participate. 4. Increasing the cooperation between groups of interests in the fight against corruption. Conclusion I conclude that corruption retard growth through scaring off investors, causing high fiscal deficit, amplifying economic transaction costs, misallocating public resources, and can bring the economy in crisis. The strategies for fighting corruption depend on the characteristics of the country. For example for Albania faced with an unclear legal framework, weak institution as well as the culture should be taken important steps in dealing with these challenges. This requires time and participation of all forces government, private sector and NGO and the participation of the public as well. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Scarcity and Unlimited Wants.

    This is called privatisation. Arguments for Privatisation * Firms operate more efficiently in the private sector because they are trying to maximise profits. * Money can be raised to increase government services or to pay for tax cuts. * Ordinary people become shareholders and take a greater interest in economic matters ('peoples's capitalism').

  2. The Nature of Macroeconomics

    D L � * Income distribution = rising incomes and employment, tax revenue, better public

  1. Split Votes: A Nation Divided on the Marijuana/Drug Legalization Debate

    an independent posture, the Cato Institute accepts no government funding or endowments. Contributions are received from foundations, corporations, and individuals" (Cato). David Boaz is the executive Vice President of Cato and "is the leading authority on domestic issues like education choice, drug legalization, the growth of government, and the rise of libertarianism" (Cato).

  2. An Empirical Investigation into the Causes and Effects of Liquidity in Emerging

    Many studies have looked at the returns, yield spreads, volatility and liquidity of bonds in each individual market and what variables affect these measures. However, relatively little work has been conducted into comparing the two asset classes, more specifically comparing the liquidity of them.

  1. Citigroup has successfully faced the challenges of the 19th and 20th centuries and has ...

    * S-O Strategies Pursue opportunities that are good fit to company's strengths * W-O Strategies Overcome weakness to pursue opportunities * S-T Strategies Identify ways that the firm can use its strengths to reduce vulnerability to external threats * W-T Strategies Establish a defensive plan to prevent the firms weakness

  2. Case Study: The Home Depot

    The Home Depot Management is layered so there are both vertical and horizontal linkages among the firm's management. The bottom of the structure consists of store department managers governed by one store manager responsible for delegating duties and upper management's directives.

  1. Evaluate the impact of Nike's outsourcing strategy and factory location on the host nation

    It could be argued Nike significantly reduces the unemployment rate of the countries it operates in because outsourcing production provides the population with jobs that wouldn't exist without Nikes presence. Evidence to support this is the fact that employs over 3000 people in the Asia pacific region.

  2. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    However, although these recent studies undermine the earlier conclusion of Goetzmann et al on the relationship between free capital flows and high correlations, they offer support for another conclusion by Goetzmann et al considering the time varying pattern of correlation matrices.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work