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World map of the 2009 Corruption Perceptions Index by Transparency International, which measures "the degree to which corruption is perceived to exist among public officials and politicians". High numbers (green) indicate less perception of corruption, whereas lower numbers (red) indicate higher perception of corruption.

Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by private persons or corporations not directly involved with the government. An illegal act by an officeholder constitutes political corruption only if the act is directly related to their official duties.

All forms of government are susceptible to political corruption. Forms of corruption vary, but include bribery, extortion, cronyism, nepotism, patronage, graft, and embezzlement. While corruption may facilitate criminal enterprise such as drug trafficking, money laundering, and trafficking, it is not restricted to these activities.

The activities that constitute illegal corruption differ depending on the country or jurisdiction. For instance, certain political funding practices that are legal in one place may be illegal in another. In some cases, government officials have broad or poorly defined powers, which make it difficult to distinguish between legal and illegal actions. Worldwide, bribery alone is estimated to involve over 1 trillion US dollars annually.[1] A state of unrestrained political corruption is known as a kleptocracy, literally meaning "rule by thieves".

Contents

Effects

Effects on politics, administration, and institutions

Detail from Corrupt Legislation (1896) by Elihu Vedder. Library of Congress Thomas Jefferson Building, Washington, D.C.

Corruption poses a serious development challenge. In the political realm, it undermines democracy and good governance by flouting or even subverting formal processes. Corruption in elections and in legislative bodies reduces accountability and distorts representation in policymaking; corruption in the judiciary compromises the rule of law; and corruption in public administration results in the inefficient provision of services. More generally, corruption erodes the institutional capacity of government as procedures are disregarded, resources are siphoned off, and public offices are bought and sold. At the same time, corruption undermines the legitimacy of government and such democratic values as trust and tolerance.

Economic effects

Corruption undermines economic development by generating considerable distortions and inefficiency. In the private sector, corruption increases the cost of business through the price of illicit payments themselves, the management cost of negotiating with officials, and the risk of breached agreements or detection. Although some claim corruption reduces costs by cutting red tape, the availability of bribes can also induce officials to contrive new rules and delays. Openly removing costly and lengthy regulations are better than covertly allowing them to be bypassed by using bribes. Where corruption inflates the cost of business, it also distorts the playing field, shielding firms with connections from competition and thereby sustaining inefficient firms.

Corruption also generates economic distortions in the public sector by diverting public investment into capital projects where bribes and kickbacks are more plentiful. Officials may increase the technical complexity of public sector projects to conceal or pave way for such dealings, thus further distorting investment. Corruption also lowers compliance with construction, environmental, or other regulations, reduces the quality of government services and infrastructure, and increases budgetary pressures on government.

Economists argue that one of the factors behind the differing economic development in Africa and Asia is that in the former, corruption has primarily taken the form of rent extraction with the resulting financial capital moved overseas rather invested at home (hence the stereotypical, but often accurate, image of African dictators having Swiss bank accounts). In Nigeria, for example, more than $400 billion was stolen from the treasury by Nigeria's leaders between 1960 and 1999.[2] University of Massachusetts researchers estimated that from 1970 to 1996, capital flight from 30 sub-Saharan countries totaled $187bn, exceeding those nations' external debts.[3] (The results, expressed in retarded or suppressed development, have been modeled in theory by economist Mancur Olson.) In the case of Africa, one of the factors for this behavior was political instability, and the fact that new governments often confiscated previous government's corruptly-obtained assets. This encouraged officials to stash their wealth abroad, out of reach of any future expropriation. In contrast, Asian administrations such as Suharto's New Order often took a cut on business transactions or provided conditions for development, through infrastructure investment, law and order, etc.

Environmental and social effects

Corruption facilitates environmental destruction. Corrupt countries may formally have legislation to protect environment, it cannot be enforced if officials can easily bribed.Same applies social rights worker protection, unionization prevention child labor. Violation these laws rights enables corrupt countries gain illegitimate economic advantage international market.

As the Nobel Prize-winning economist Amartya Sen has observed that "there is no such thing as an apolitical food problem." While drought and other naturally occurring events may trigger famine conditions, it is government action or inaction that determines its severity, and often even whether or not a famine will occur. Governments with strong tendencies towards kleptocracy can undermine food security even when harvests are good. Officials often steal state property. In Bihar, India, more than 80% of the subsidized food aid to poor is stolen by corrupt officials.[4] Similarly, food aid is often robbed at gunpoint by governments, criminals and warlords alike, and sold for a profit. The 20th century is full of many examples of governments undermining the food security of their own nations – sometimes intentionally.[5]

Other areas: health, public safety, education, trade unions etc.

Corruption is not specific to poor, developing or transition countries. In western European countries, there have been cases of bribery and other forms of corruption in all possible fields: under-the-table payments made to reputed surgeons by patients willing to be on top of the list of forthcoming surgeries, bribes paid by suppliers to the automotive industry in order to sell poor quality connectors used for instance in safety equipment such as airbags, bribes paid by suppliers to manufacturers of defibrillators (to sell poor quality capacitors), contributions paid by wealthy parents to the "social and culture fund" of a prestigious university in exchange for it to accept their children, bribes paid to obtain diplomas, financial and other advantages granted to unionists by members of the executive board of a car manufacturer in exchange for employer-friendly positions and votes etc. Examples are endless. These various manifestations of corruption can ultimately present a danger for the public health, they can discredit certain essential institutions or social relationships.

Corruption can also affect the various components of sports activities (referees, players, medical and laboratory staff involved in anti-doping controls, members of national sport federation and international committees deciding about the allocation of contracts and competition places).

There have also been cases against (members of) various types of non-profit and non-government organisations, as well as religious organisations.

Ultimately, the distinction between public and private sector corruption sometimes appears rather artificial and national anti-corruption initiatives may need to avoid legal and other loopholes in the coverage of the instruments.

Types of corruption

Bribery

Bribery requires two participants: one to give the bribe, and one to take it. In some countries the culture of corruption extends to every aspect of public life, making it extremely difficult for individuals to stay in business without resorting to bribes. Bribes may be demanded in order for an official to do something he is already paid to do. They may also be demanded in order to bypass laws and regulations. In some developing nations, up to half of the population has paid bribes during the past 12 months.[6]

In recent years, efforts have been made by the international community to encourage countries to dissociate and incriminate as separate offences, active and passive bribery. Active bribery can be defined for instance as the promising, offering or giving by any person, directly or indirectly, of any undue advantage [to any public official], for himself or herself or for anyone else, for him or her to act or refrain from acting in the exercise of his or her functions. (article 2 of the Criminal Law Convention on Corruption (ETS 173) of the Council of Europe). Passive bribery can be defined as the request or receipt [by any public official], directly or indirectly, of any undue advantage, for himself or herself or for anyone else, or the acceptance of an offer or a promise of such an advantage, to act or refrain from acting in the exercise of his or her functions (article 3 of the Criminal Law Convention on Corruption (ETS 173)). The reason for this dissociation is to make the early steps (offering, promising, requesting an advantage) of a corrupt deal already an offence and, thus, to give a clear signal (from a criminal policy point of view) that bribery is not acceptable. Besides, such a dissociation makes the prosecution of bribery offences easier since it can be very difficult to prove that two parties (the bribe-giver and the bribe-taker) have formally agreed upon a corrupt deal. Besides, there is often no such formal deal but only a mutual understanding, for instance when it is common knowledge in a municipality that to obtain a building permit one has to pay a "fee" to the decision maker to obtain a favourable decision. A working definition of corruption is also provided as follows in article 3 of the Civil Law Convention on Corruption (ETS 174): For the purpose of this Convention, "corruption" means requesting, offering, giving or accepting, directly or indirectly, a bribe or any other undue advantage or prospect thereof, which distorts the proper performance of any duty or behaviour required of the recipient of the bribe, the undue advantage or the prospect thereof.

Trading in influence

Trading in influence, or influence peddling in certain countries, refers to the situation where a person is selling his/her influence over the decision process involving a third party (person or institution). The difference with bribery is that this is a tri-lateral relation. But from a legal point of view, the role of the third party (who is the target of the influence) does not really matter although he/she can be an accessory in some instances. It can be difficult to make a distinction between this form of corruption and certain forms of extreme and poorly regulated lobbying where for instance law- or decision-makers can freely "sell" their vote, decision power or influence to those lobbyists who offer the highest retribution, including where for instance the latter act on behalf of powerful clients such as industrial groups who want to avoid the passing of certain environmental, social or other regulations perceived as too stringent etc. Where lobbying is (sufficiently) regulated, it becomes possible to provide for a distinctive criteria and to consider that trading in influence involves the use of "improper influence", as in article 12 of the Criminal Law Convention on Corruption (ETS 173) of the Council of Europe.

Graft

While bribery includes an intent to influence or be influenced by another for personal gain, which is often difficult to prove, graft only requires that the official gains something of value, not part of his official pay, when doing his work. Large "gifts" qualify as graft, and most countries have laws against it (for example, any gift over $200 value made to the President of the United States is considered to be a gift to the Office of the Presidency and not to the President himself. The outgoing President must buy it if he wants to keep it). Another example of graft is a politician using his knowledge of zoning to purchase land which he knows is planned for development, before this is publicly known, and then selling it at a significant profit. This is comparable to insider trading in business.

Patronage

Patronage refers to favoring supporters, for example with government employment. This may be legitimate, as when a newly elected government changes the top officials in the administration in order to effectively implement its policy. It can be seen as corruption if this means that incompetent persons, as a payment for supporting the regime, are selected before more able ones. In nondemocracies many government officials are often selected for loyalty rather than ability. They may be almost exclusively selected from a particular group (for example, Sunni Arabs in Saddam Hussein's Iraq, the nomenklatura in the Soviet Union, or the Junkers in Imperial Germany) that support the regime in return for such favors.

Nepotism and cronyism

Favoring relatives (nepotism) or personal friends (cronyism) of an official is a form of illegitimate private gain. This may be combined with bribery, for example demanding that a business should employ a relative of an official controlling regulations affecting the business. The most extreme example is when the entire state is inherited, as in North Korea or Syria. A milder form of cronyism is an "old boy network", in which appointees to official positions are selected only from a closed and exclusive social network – such as the alumni of particular universities – instead of appointing the most competent candidate.

Seeking to harm enemies becomes corruption when official powers are illegitimately used as means to this end. For example, trumped-up charges are often brought up against journalists or writers who bring up politically sensitive issues, such as a politician's acceptance of bribes.

In the Indian political system, leadership of national and regional parties are passed from generation to generation creating a system in which a family holds the center of power, some examples are most of the dravidian parties of south India and also the largest party in India - Congress.

Electoral fraud

Electoral fraud is illegal interference with the process of an election. Acts of fraud affect vote counts to bring about a election result, whether by increasing the vote share of the favored candidate, depressing the vote share of the rival candidates or both. Also called voter fraud, the mechanisms involved include illegal voter registration, intimidation at polls and improper vote counting.

Embezzlement

Embezzlement is outright theft of entrusted funds. It is a misappropriation of property.

Another common type of embezzlement is that of entrusted government resources; for example, when a director of a public enterprise employs company workers to build or renovate his own house.

Kickbacks

A kickback is an official's share of misappropriated funds allocated from his or her organization to an organization involved in corrupt bidding. For example, suppose that a politician is in charge of choosing how to spend some public funds. He can give a contract to a company that is not the best bidder, or allocate more than they deserve. In this case, the company benefits, and in exchange for betraying the public, the official receives a kickback payment, which is a portion of the sum the company received. This sum itself may be all or a portion of the difference between the actual (inflated) payment to the company and the (lower) market-based price that would have been paid had the bidding been competitive. Kickbacks are not limited to government officials; any situation in which people are entrusted to spend funds that do not belong to them are susceptible to this kind of corruption. Kickbacks are also common in the Pharmaceutical Industry, as many doctors and physicians receive pay in return for added promotion and prescription of the drug these Pharmaceutical Companies are marketing. (See: Anti-competitive practices, Bid rigging.)

Unholy alliance

An unholy alliance is a coalition among seemingly antagonistic groups, especially if one is religious,[7] for ad hoc or hidden gain. Like patronage, unholy alliances are not necessarily illegal, but unlike patronage, by its deceptive nature and often great financial resources, an unholy alliance can be much more dangerous to the public interest. An early, well-known use of the term was by Theodore Roosevelt (TR):

"To destroy this invisible Government, to dissolve the unholy alliance between corrupt business and corrupt politics is the first task of the statesmanship of the day." – 1912 Progressive Party Platform, attributed to TR[8] and quoted again in his autobiography[9] where he connects trusts and monopolies (sugar interests, Standard Oil, etc.) to Woodrow Wilson, Howard Taft, and consequently both major political parties.

Involvement in organized crime

An illustrative example of official involvement in organized crime can be found from 1920s and 1930s Shanghai, where Huang Jinrong was a police chief in the French concession, while simultaneously being a gang boss and co-operating with Du Yuesheng, the local gang ringleader. The relationship kept the flow of profits from the gang's gambling dens, prostitution, and protection rackets undisturbed.

The United States accused Manuel Noriega's government in Panama of being a "narcokleptocracy", a corrupt government profiting on illegal drug trade. Later the U.S. invaded Panama and captured Noriega.

Conditions favorable for corruption

It is argued that the following conditions are favorable for corruption:

  • Information deficits
    • Lack of government transparency.
    • Lacking freedom of information legislation. The Indian Right to Information Act 2005 has "already engendered mass movements in the country that is bringing the lethargic, often corrupt bureaucracy to its knees and changing power equations completely."[10]
    • Lack of investigative reporting in the local media.
    • Contempt for or negligence of exercising freedom of speech and freedom of the press.
    • Weak accounting practices, including lack of timely financial management.
    • Lack of measurement of corruption. For example, using regular surveys of households and businesses in order to quantify the degree of perception of corruption in different parts of a nation or in different government institutions may increase awareness of corruption and create pressure to combat it. This will also enable an evaluation of the officials who are fighting corruption and the methods used.
    • Tax havens which tax their own citizens and companies but not those from other nations and refuse to disclose information necessary for foreign taxation. This enables large scale political corruption in the foreign nations.[11][citation needed]
  • Lacking control of the government.
    • Democracy absent or dysfunctional. See illiberal democracy.
    • Lacking civic society and non-governmental organizations which monitor the government.
    • An individual voter may have a rational ignorance regarding politics, especially in nationwide elections, since each vote has little weight.
    • Weak civil service, and slow pace of reform.
    • Weak rule of law.
    • Weak legal profession.
    • Weak judicial independence.
    • Lacking protection of whistleblowers.
    • Lack of benchmarking, that is continual detailed evaluation of procedures and comparison to others who do similar things, in the same government or others, in particular comparison to those who do the best work. The Peruvian organization Ciudadanos al Dia has started to measure and compare transparency, costs, and efficiency in different government departments in Peru. It annually awards the best practices which has received widespread media attention. This has created competition among government agencies in order to improve.[12]
  • Opportunities and incentives
    • Individual officials routinely handle cash, instead of handling payments by giro or on a separate cash desk—illegitimate withdrawals from supervised bank accounts are much more difficult to conceal.
    • Public funds are centralized rather than distributed. For example, if $1,000 is embezzled from local agency that has $2,000 funds, it easier to notice than from national agency with $2,000,000 funds. See the principle of subsidiarity.
    • Large, unsupervised public investments.
    • Sale of state-owned property and privatization.[citation needed]
    • Poorly-paid government officials.
    • Government licenses needed to conduct business, e.g., import licenses, encourage bribing and kickbacks.
    • Long-time work in the same position may create relationships inside and outside the government which encourage and help conceal corruption and favoritism. Rotating government officials to different positions and geographic areas may help prevent this; for instance certain high rank officials in French government services (e.g. treasurer-paymasters general) must rotate every few years.
    • Costly political campaigns, with expenses exceeding normal sources of political funding, especially when funded with taxpayer money.
    • Less interaction with officials reduces the opportunities for corruption. For example, using the Internet for sending in required information, like applications and tax forms, and then processing this with automated computer systems. This may also speed up the processing and reduce unintentional human errors. See e-Government.
    • A windfall from exporting abundant natural resources may encourage corruption.[13] (See Resource curse)
    • War and other forms of conflict correlate with a breakdown of public security.
  • Social conditions
    • Self-interested closed cliques and "old boy networks".
    • Family-, and clan-centered social structure, with a tradition of nepotism/favouritism being acceptable.
    • A gift economy, such as the Chinese guanxi or the Soviet blat system, emerges in a Communist centrally planned economy.
    • In societies where personal integrity is rated as less important than other characteristics (by contrast, in societies such as 18th and 19th century England, 20th century Japan and post-war western Germany, where society showed almost obsessive regard for "honor" and personal integrity, corruption was less frequently seen)[citation needed]
    • Lacking literacy and education among the population.
    • Frequent discrimination and bullying among the population.
    • Tribal solidarity, giving benefits to certain ethnic groups

Relation to economic freedom

According to a study of the conservative think tank Heritage foundation, lack of economic freedom explains 71% of corruption[14]: the poorer the index of economic freedom, the more corruption there is in a country. Below is a list of examples of governmental activities that limit economic freedom, create opportunities for corruption (incentives for individuals and/or companies to buy privileges or favors worth of money, from politicians or officials) and have in recent economic history also lead to corruption:

  • Licenses, permits etc.
  • Foreign trade restrictions. Officials may then, e.g., sell import or export permits.
  • Credit bailouts.
  • State ownership of utilities and natural resources. 'In analyzing India's state-run irrigation system, professor Shyam Kamath - - wrote: Public-sector irrigation systems everywhere are typically plagued with cost and time overruns, endemic inefficiency, chronic excess demands, and widespread corruption and rent-seeking.'
  • Access to loans at below-market rates. In Chile, '$4.6 billion was awarded to government banks in direct subsidies through "soft" loans' between 1940 and 1973.[14]

Size of public sector

It is a controversial issue whether the size of the public sector per se results in corruption. As mentioned above, low degree of economic freedom explains 71% of corruption. The actual share may be even greater, as also past regulation affects the current level of corruption due to the slowth of cultural changes (e.g., it takes time for corrupted officials to adjust to changes in economic freedom).[15] The size of public sector in terms of taxation is only one component of economic un-freedom, so the empirical studies on economic freedom do not directly answer this question.

Extensive and diverse public spending is, in itself, inherently at risk of cronyism, kickbacks and embezzlement. Complicated regulations and arbitrary, unsupervised official conduct exacerbate the problem. This is one argument for privatization and deregulation. Opponents of privatization see the argument as ideological. The argument that corruption necessarily follows from the opportunity is weakened by the existence of countries with low to non-existent corruption but large public sectors, like the Nordic countries.>"Error: no |title= specified when using {{Cite web}}". Project Syndicate. http://www.project-syndicate.org/commentary/sachs110. Retrieved 2009-11-05. </ref> However, these countries score high on the Ease of Doing Business Index, due to good and often simple regulations, and have rule of law firmly established. Therefore, due to their lack of corruption in the first place, they can run large public sectors without inducing political corruption.

Like other governmental economic activities, also privatization, such as in the sale of government-owned property, is particularly at the risk of cronyism. Privatizations in Russia, Latin America, and East Germany were accompanied by large scale corruption during the sale of the state owned companies. Those with political connections unfairly gained large wealth, which has discredited privatization in these regions. While media have reported widely the grand corruption that accompanied the sales, studies have argued that in addition to increased operating efficiency, daily petty corruption is, or would be, larger without privatization, and that corruption is more prevalent in non-privatized sectors. Furthermore, there is evidence to suggest that extralegal and unofficial activities are more prevalent in countries that privatized less.[16]

There is the counter point, however, that oligarchy industries can be quite corrupt ( "competition" like collusive price-fixing, pressuring dependent businesses, etc. ), and only by having a portion of the market owned by someone other than that oligarchy, i.e. public sector, can keep them in line ( if the public sector gas company is making money & selling gas for 1/2 of the price of the private sector companies... the private sector companies won't be able to simultaneously gouge to that degree & keep their customers: the competition keeps them in line ). Private sector corruption can increase the poverty/helplessness of the population, so it can affect government corruption, in the long-term.

In the European Union, the principle of subsidiarity is applied: a government service should be provided by the lowest, most local authority that can competently provide it. An effect is that distribution of funds into multiple instances discourages embezzlement, because even small sums missing will be noticed. In contrast, in a centralized authority, even minute proportions of public funds can be large sums of money.

Governmental corruption

If the highest echelons of the governments also take advantage from corruption or embezzlement from the state's treasury, it is sometimes referred with the neologism kleptocracy. Members of the government can take advantage of the natural resources (e.g., diamonds and oil in a few prominent cases) or state-owned productive industries. A number of corrupt governments have enriched themselves via foreign aid, which is often spent on showy buildings and armaments.

A corrupt dictatorship typically results in many years of general hardship and suffering for the vast majority of citizens as civil society and the rule of law disintegrate. In addition, corrupt dictators routinely ignore economic and social problems in their quest to amass ever more wealth and power.

The classic case of a corrupt, exploitive dictator often given is the regime of Marshal Mobutu Sese Seko, who ruled the Democratic Republic of the Congo (which he renamed Zaire) from 1965 to 1997. It is said that usage of the term kleptocracy gained popularity largely in response to a need to accurately describe Mobutu's regime. Another classic case is Nigeria, especially under the rule of General Sani Abacha who was de facto president of Nigeria from 1993 until his death in 1998. He is reputed to have stolen some US$3–4 billion. He and his relatives are often mentioned in Nigerian 419 letter scams claiming to offer vast fortunes for "help" in laundering his stolen "fortunes", which in reality turn out not to exist.[17] More than $400 billion was stolen from the treasury by Nigeria's leaders between 1960 and 1999.[18]

More recently, articles in various financial periodicals, most notably Forbes magazine, have pointed to Fidel Castro, General Secretary of the Republic of Cuba since 1959, of likely being the beneficiary of up to $900 million, based on "his control" of state-owned companies.[19] Opponents of his regime claim that he has used money amassed through weapons sales, narcotics, international loans and confiscation of private property to enrich himself and his political cronies who hold his dictatorship together, and that the $900 million published by Forbes is merely a portion of his assets, although that needs to be proven.[20]

Fighting corruption

Mobile telecommunications and radio broadcasting help to fight corruption, especially in developing regions like Africa,[21] where other forms of communications are limited.

In the 1990s, initiatives were taken at international level (in particular by the European Community, the Council of Europe, the OECD) to put a ban on corruption: in 1996, the Committee of Ministers of the Council of Europe, for instance, adopted a comprehensive Programme of Action against Corruption and, subsequently, issued a series of anti-corruption standard-setting instruments:

The purpose of these instruments was to address the various forms of corruption (involving the public sector, the private sector, the financing of political activities etc.) whether they had a strictly domestic or also a transnational dimension. To monitor the implementation at national level of the requirements and principles provided in those texts, a monitoring mechanism - the Group of States Against Corruption (also known as GRECO) was created.

Further conventions were adopted at regional level under the aegis of the Organization of American States (OAS or OEA), the African Union, and in 2003, at the universal level under that of the United Nations.

Whistleblowers

Campaign contributions

In the political arena, it is difficult to prove corruption. For this reason, there are often unproved rumors about many politicians, sometimes part of a smear campaign.

Politicians are placed in apparently compromising positions because of their need to solicit financial contributions for their campaign finance. If they then appear to be acting in the interests of those parties that funded them, this gives rise to talk of political corruption. Supporters may argue that this is coincidental. Cynics wonder why these organizations fund politicians at all, if they get nothing for their money.

Laws regulating campaign finance in the United States require that all contributions and their use should be publicly disclosed. Many companies, especially larger ones, fund both the Democratic and Republican parties. Certain countries, such as France, ban altogether the corporate funding of political parties. Because of the possible circumvention of this ban with respect to the funding of political campaigns, France also imposes maximum spending caps on campaigning; candidates that have exceeded those limits, or that have handed in misleading accounting reports, risk having their candidacy ruled invalid, or even being prevented from running in future elections. In addition, the government funds political parties according to their successes in elections.

In some countries, political parties are run solely off subscriptions (membership fees).

Even legal measures such as these have been argued to be legalized corruption, in that they often favor the political status quo. Minor parties and independents often argue that efforts to rein in the influence of contributions do little more than protect the major parties with guaranteed public funding while constraining the possibility of private funding by outsiders. In these instances, officials are legally taking money from the public coffers for their election campaigns to guarantee that they will continue to hold their influential and often well-paid positions.

The development of Corruption Free Politics by the Agenda 2058 Foundation in South Africa, has been the turning point in the war against political corruption.[citation needed] Indeed by removing the need for donations, state subsidies and other gratuities, the WNPC's (as Agenda 2058 calls them) enable political solvency, political autonomy and remove the need for the grey money, which ordinarily is condoned on the basis of campaign finance needs. For more information read www.agenda2058.org.

As indicated above, the Committee of Ministers of the Council of Europe recognised in 1996 the importance of links between corruption and political financing. It adopted in 2003 the Recommendation on Common Rules against Corruption in the Funding of Political Parties and Electoral Campaigns (Rec(2003)4). This text is quite unique at international level as it aims i.a. at increasing transparency in the funding of political parties and election campaigns (these two areas are difficult to dissociate since parties are also involved in campaigning and in many countries, parties do not have the monopoly over the presentation of candidates for elections), ensuring a certain level of control over the funding and spending connected with political activities, and making sure infringements are subject to effective, proportionate and dissuasive sanctions. In the context of its monitoring activities, the Group of States Against Corruption has identified a great variety of possible improvements in those areas (see the country reports adopted under the Third Evaluation Round).

Measuring corruption

Measuring corruption statistically is difficult if not impossible due to the illicit nature of the transaction and imprecise definitions of corruption.[22] While "corruption" indices first appeared in 1995 with the Corruption Perceptions Index, all of these metrics address different proxies for corruption, such as public perceptions of the extent of the problem.[23]

Transparency International, an anti-corruption NGO, pioneered this field with the Corruption Perceptions Index, first released in 1995. This work is often credited with breaking a taboo and forcing the issue of corruption into high level development policy discourse. Transparency International currently publishes three measures, updated annually: a Corruption Perceptions Index (based on aggregating third-party polling of public perceptions of how corrupt different countries are); a Global Corruption Barometer (based on a survey of general public attitudes toward and experience of corruption); and a Bribe Payers Index, looking at the willingness of foreign firms to pay bribes. The Corruption Perceptions Index is the best known of these metrics, though it has drawn much criticism[23][24][25] and may be declining in influence.[26]

The World Bank collects a range of data on corruption, including survey responses from over 100,000 firms worldwide and a set of indicators of governance and institutional quality. Moreover, one of the six dimensions of governance measured by the Worldwide Governance Indicators is Control of Corruption, which is defined as "the extent to which power is exercised for private gain, including both petty and grand forms of corruption, as well as 'capture' of the state by elites and private interests."[27] While the definition itself is fairly precise, the data aggregated into the Worldwide Governance Indicators is based on any available polling: questions range from "is corruption a serious problem?" to measures of public access to information, and not consistent across countries. Despite these weaknesses, the global coverage of these datasets has led to their widespread adoption, most notably by the Millennium Challenge Corporation.[22]

In part in response to these criticisms, a second wave of corruption metrics has been created by Global Integrity, the International Budget Partnership and many lesser known local groups, starting with the Global Integrity Index, first published in 2004. These second wave projects aim not to create awareness, but to create policy change via targeting resources more effectively and creating checklists toward incremental reform. Global Integrity and the International Budget Partnership each dispense with public surveys and instead uses in-country experts to evaluate "the opposite of corruption" – which Global Integrity defines as the public policies that prevent, discourage or expose corruption.[28] These approaches compliment the first wave, awareness-raising tools by giving governments facing public outcry a checklist which measures concrete steps toward improved governance.[22]

Typical second wave corruption metrics do not offer the worldwide coverage found in first wave projects, and instead focus on localizing information gathered to specific problems and creating deep, "unpackable" content that matches quantitative and qualitative data. Meanwhile, alternative approaches such as the British aid agency's Drivers of Change research skips numbers entirely and favors understanding corruption via political economy analysis of who controls power in a given society.[22]

See also

Forms or aspects of corruption
Good governance
Theoretical aspects
Anti-corruption authorities and measures
Corruption in fiction

References

  1. ^ African corruption 'on the wane', 10 July 2007, BBC News
  2. ^ "Nigeria's corruption busters". Unodc.org. http://www.unodc.org/unodc/en/frontpage/nigerias-corruption-busters.html. Retrieved 2009-12-05. 
  3. ^ "When the money goes west". New Statesman. 2005-03-14. http://www.newstatesman.com/Economy/200503140015. Retrieved 2009-11-05. 
  4. ^ "Will Growth Slow Corruption In India?". Forbes. http://www.forbes.com/2007/08/15/wipro-tata-corruption-ent-law-cx_kw_0814whartonindia.html. 
  5. ^ Sheeter, Laura (2007-11-24). "Ukraine remembers famine horror". BBC News. http://news.bbc.co.uk/2/hi/europe/7111296.stm. Retrieved 2009-12-05. 
  6. ^ "How common is bribe-paying?". http://www.transparency.org/news_room/latest_news/press_releases/2005/09_12_2005_barometer_2005. "...a relatively high proportion of families in a group of Central Eastern European, African, and Latin American countries paid a bribe in the previous twelve months." 
  7. ^ "Kentucky's unholy alliance". Kpac2.blogspot.com. 2007-04-05. http://kpac2.blogspot.com/2007/04/unholy-alliance.html. Retrieved 2009-12-05. 
  8. ^ By Patricia OToole Sunday, Jun. 25, 2006 (2006-06-25). "O'Toole, Patricia, "The War of 1912," TIME in Partneship with CNN, Jun. 25, 2006". Time.com. http://www.time.com/time/magazine/article/0,9171,1207791-2,00.html. Retrieved 2009-12-05. 
  9. ^ "Roosevelt, Theodore. ''An Autobiography:'' XV. The Peace of Righteousness, Appendix B, New York: Macmillan, 1913". Bartleby.com. http://www.bartleby.com/55/15b.html. Retrieved 2009-12-05. 
  10. ^ "AsiaMedia :: Right to Information Act India's magic wand against corruption". Asiamedia.ucla.edu. 2006-08-31. http://www.asiamedia.ucla.edu/article.asp?parentid=52046. Retrieved 2009-11-05. 
  11. ^ "Western bankers and lawyers 'rob Africa of $150bn every year". Observer.guardian.co.uk. 2007-01-21. http://observer.guardian.co.uk/business/story/0,,1994976,00.html. Retrieved 2009-12-05. 
  12. ^ "Why benchmarking works - PSD Blog - World Bank Group". Psdblog.worldbank.org. 2006-08-17. http://psdblog.worldbank.org/psdblog/2006/08/why_benchmarkin.html#more. Retrieved 2009-11-05. 
  13. ^ Adelaide.edu.au
  14. ^ a b Economic Freedom and Corruption, Alejandro A. Chafuen and Eugenio Guzmán, Chapter 3 in 2000 Index of Economic Freedom
  15. ^ Heritage.org, Economic Freedom and Corruption (pdf), Alejandro A. Chafuen and Eugenio Guzmán
  16. ^ Privatization in Competitive Sectors: The Record to Date. Sunita Kikeri and John Nellis. World Bank Policy Research Working Paper 2860, June 2002. Econ.Chula.ac.th Privatization and Corruption. David Martimort and Stéphane Straub. IDEI.fr
  17. ^ Who wants to be a millionaire? – An online collection of Nigerian scam mails
  18. ^ Nigeria's corruption totals $400 billion
  19. ^ "Fidel Castro net worth rises, according to 'Forbes'". Usatoday.Com. 2006-05-04. http://www.usatoday.com/money/2006-05-04-castro_x.htm. Retrieved 2009-11-05. 
  20. ^ Shapiro, Ben (2006-08-05). "Ben Shapiro :: Townhall.com :: The death of Fidel Castro". Townhall.com. http://www.townhall.com/columnists/BenShapiro/2006/08/02/the_death_of_fidel_castro. Retrieved 2009-11-05. 
  21. ^ "Mobile Phones and Radios Combat Corruption in Burundi - Voices from Emerging Markets". Voicesfromemergingmarkets.com. 2009-03-12. http://voicesfromemergingmarkets.com/?p=19. Retrieved 2009-11-05. 
  22. ^ a b c d A Users' Guide to Measuring Corruption.
  23. ^ a b Galtung, Fredrik (2006). "Measuring the Immeasurable: Boundaries and Functions of (Macro) Corruption Indices," in Measuring Corruption, Charles Sampford, Arthur Shacklock, Carmel Connors, and Fredrik Galtung, Eds. (Ashgate): 101–130.
  24. ^ Sik, Endre (2002). "The Bad, the Worse and the Worst: Guesstimating the Level of Corruption," in Political Corruption in Transition: A Skeptic's Handbook, Stephen Kotkin and Andras Sajo, Eds. (Budapest: Central European University Press): 91–113.
  25. ^ Arndt, Christiane and Charles Oman (2006). Uses and Abuses of Governance Indicators (Paris: OECD Development Centre).
  26. ^ "Media citing Transparency International". Google.com. http://www.google.com/trends?q=Transparency+International&ctab=-1&geo=all&date=all. Retrieved 2009-12-05. 
  27. ^ A Decade of Measuring the Quality of Governance.
  28. ^ Global Integrity Report: Methodology

Further reading

  • Charles Copeman and Amy McGrath (eds.)(1997), Corrupt Elections. Ballot Rigging in Australia, Towerhouse Publications, Kensington, NSW
  • Axel Dreher, Christos Kotsogiannis, Steve McCorriston (2004), Corruption Around the World: Evidence from a Structural Model.
  • Kimberly Ann Elliott, (ed.) (1997) Corruption and the Global Economy
  • Edward L. Glaeser and Claudia Goldin, (eds.) (2006), Corruption and Reform: Lessons from America's Economic History U. of Chicago Press, 386 pp. ISBN 0-226-29957-0.
  • Arnold J. Heidenheimer, Michael Johnston and Victor T. LeVine (eds.) (1989), Political Corruption: A Handbook 1017 pages.
  • Michael Johnston (2005), Syndromes of Corruption: Wealth, Power, and Democracy
  • Johann Graf Lambsdorff (2007), The Institutional Economics of Corruption and Reform: Theory, Evidence and Policy Cambridge University Press
  • Amy McGrath, (1994), The Forging of Votes, Tower House Publications, Kensington, NSW
  • Amy McGrath, (2003), Frauding of Elections, Tower House Publications and H.S. Chapman Society, Brighton-le Sands, NSW
  • Amy McGrath, (1994), The Frauding of Votes, Tower House Publications, Kensington, NSW
  • Amy McGrath, (2005), The Stolen Election, Australia 1987 According to Frank Hardy, Author of Power Without Glory, Towerhouse Publications and H.S. Chapman Society, Brighton-le Sands, NSW
  • Darrell M. West (2000), Checkbook Democracy. How Money Corrupts Political Campaigns, Northeastern University Press, Boston (Mass.) ISBN 1-55553-440-6
  • Alexandra Wrage (2007) Bribery and Extortion: Undermining Business, Governments and Security
  • Col. Riaz Jafri (Retd) The cancer of corruption is spreading world wide, some spots with thicker growth while others in the growing tumorous stage

External links


The word corrupt (Middle English, from Latin corruptus, past participle of corrumpere, to destroy : com-, intensive pref. and rumpere, to break) when used as an adjective literally means "utterly broken".[1] In modern English usage the words corruption and corrupt have many meanings:

  • Political corruption: the abuse of public power, office, or resources by government officials or employees for personal gain, e.g. by extortion, soliciting or offering bribes.[2]
  • Police corruption
  • Corporate corruption: corporate criminality and the abuse of power by corporation officials, either internally or externally.
  • Putrefaction: the natural process of decomposition in the human and animal body following death.
  • Data corruption: an unintended change to data in storage or in transit.
  • Linguistic corruption: the change in meaning to a language or a text introduced by cumulative errors in transcription as changes in the language speakers' comprehension.
  • Bribery in politics, business, or sport (including match fixing).
  • Rule of law Governmental corruption of judiciary includes governmental spending on the courts, which is completely financially controlled by the executive in many transitional and developing countries. This undermines the principle of checks and balances and creates a critical financial dependence on the judiciary. It covers latent governmental spending on the judiciary in the form of privileges – cars, country houses,expenses. Such a system is completely outside the realm of transparency and creates a precedent for the corruption of the judiciary by executive authorities.
  • In Christian theology,corruption is an aspect of original sin
Institutions dealing with political corruption
Entertainment with corruption themes

See also

References


Quotes

Up to date as of January 14, 2010
(Redirected to Corruption article)

From Wikiquote

Quotes about Corruption

Unsourced

(in alphabetic order, by author)

  • "Corruption is stealing from the poor."
    - Anon
  • "Rest assured knowing justice exists only as the divergence between what we know, and what we believe."
    - Anon
  • "I either want less corruption, or more chance to participate in it."
    Ashleigh Brilliant
  • "It is said that power corrupts, but actually it's more true that power attracts the corruptible. The sane are usually attracted by other things than power."
    David Brin
  • "Among a people generally corrupt liberty cannot long exist."
    "Flattery corrupts both the receiver and the giver."
    Edmund Burke
  • "Corruption is like a ball of snow, once it's set a rolling it must increase."
    Charles Caleb Colton
  • "Corruption of the best becomes the worst." – "Corruptio optimi pessima."
    latin proverb
  • "Money and Corruption Are ruining the land Crooked politicians Betray the working man, Pocketing the profits And treating us like sheep, And we're tired of hearing promises That we know they'll never keep."
    Ray Davies
  • "Corruption and hypocrisy ought not to be inevitable products of democracy, as they undoubtedly are today."
    Mahatma Gandhi
  • "Corruption ought not to be an inevitable product of democracy."
    -Mahatma Gandhi
  • "Communism has never come to power in a country that was not disrupted by war or corruption, or both."
    John Fitzgerald Kennedy
  • "The accomplice to the crime of corruption is frequently our own indifference."
    Bess Myerson
  • "The surest way to corrupt a youth is to instruct him to hold in higher esteem those who think alike than those who think differently."
    Friedrich Nietzsche
  • "I don't doubt that we suffer from a plentiful dose of corruption. But I doubt not less that people, who otherwise don't miss anything else can go on living and even prospering well."
    José Ortega y Gasset (attributed)
  • "But if thought corrupts language, language can also corrupt thought."
    George Orwell
  • "Power does not corrupt men. Fools, however, if they get into a position of power, corrupt power."
    George Bernard Shaw
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