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

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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.

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