Forms of corruption
Corruption can take on many forms:
- From limited competition when awarding government contracts to the setting up of wasteful mega-projects designed specifically for the corruption opportunities these can yield.
- From small bribes by ordinary citizens “in order to get things done” to larger payments as a means to escape criminal justice.
- From the nepotism of a father trying to get his children in a good school to outright kleptocracy (“rule by thieves”) infecting an entire government administration and political class.
However, it always means the use of governmental powers by government officials for illegitimate private gain.
Corruption in itself is not a human rights violation, and there is no right to live in a country that is not corrupt or that suffers no corruption. However, corruption does have consequences for human rights:
- It harms the economy and can create or exacerbate poverty.
- It destroys democratic government, even if it doesn’t take the very specific form of electoral corruption (hence it violates people’s political rights)
- Corruption in the judiciary compromises the rule of law and the effective enforcement of human rights law.
Consequences of corruption
Corruption is anti-democratic :
- Decisions do not reflect the will of the people but the private will of individuals or corporations who bribe elected or unelected government officials. Government policies serve individual interests rather than the public interest or the interest of the public.
- Persons engaged in corruption are likely to inhibit the democratic systems that guarantee free flows of information. If these systems can be distorted, it becomes much more difficult to expose corruption, to hold officials accountable and to force them to justify their actions. Such actions can have disastrous consequence for freedom of speech in general.
- Corruption also undermines the legitimacy of government and can lead to revolt and the outright destruction of democracy.
Corruption is economically unsound and unfair :
- In a corrupt economy, resources tend to flow to those already in a position of power, while those at the bottom of the economy have to spend a part of their scarce resources on bribes.
- Corrupt officials lay their hands on a part of the proceeds of natural resources and other sources of prosperity that should belong equally to the whole population.
- Corrupt governments will be more inclined to set up grandiose but foolish and wasteful mega-projects, because this gives them more opportunities for corruption. They thereby divert public investment from sectors that need it more or that yield more benefits for ordinary citizens.
- Corruption is a tax on investment, which hampers investment and economic growth. Especially the often all-important foreign investments (the import of technology and knowledge) diminish as corruption increases.
- Corruption increases the cost of business.
- It distorts the level playing field, giving an unfair advantage to firms with connections. These firms are perhaps not the most efficient but are propped up by corruption. As a result, the overall economy is not the most efficient.
- It discourages people to start or expand businesses because potential profits are taken away.
The graph below shows the correlation between low levels of GDP and high levels of corruption (Corruption Perception Index, or CPI, of Transparency International):
Here’s another study pointing to the same conclusions:
In 2004, the global cost of corruption was estimated at $1 trillion a year.
Causes of corruption
- Lack of transparency and free flows of information
- Lack of a free press
- Lack of government accountability through a system of democratic elections
- Inability of civil society or NGO’s to monitor the government
- Weak rule of law
- Incentives, such as poverty or low wages
- Unclear rules of behavior for government officials
- Resource curse
- “Old boy networks”
Pervasiveness of corruption
There is corruption everywhere in the world, but some countries perform better than others. This is the country ranking of the CPI (Corruption Perception Index of Transparency International) in 2007:
The CPI measures the degree to which corruption is perceived to exist among public officials and politicians. High numbers indicate relatively less corruption, whereas lower numbers indicate relatively more corruption.
- Clear rules on what is admissible behavior rather than broad or poorly defined powers
- Rule of law, law enforcement
- Eliminate incentives (proper wages)
- Employee training, competence
- Free press
- Democratic accountability