Corruption

Ma Aguirre
Mind Map by Ma Aguirre, updated more than 1 year ago
Ma Aguirre
Created by Ma Aguirre over 6 years ago
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Description

Mind Map on Corruption, created by Ma Aguirre on 09/08/2013.

Resource summary

Corruption
1 Causes
1.1 Political
1.1.1 Misplaced Incentives in public services delivery
1.1.1.1 scarce benefits and high costs
1.1.2 Institutional design
1.1.2.1 Power balance
1.1.2.2 Transparency of checks and balances
1.1.2.3 Degree of law enforcement
1.1.2.4 Degree of centralization
1.2 Geographical and cultural
1.2.1 Corruption practices are ingrained in society
1.3 Economic
1.3.1 Degree of competitiveness
1.3.1.1 Labour market: relative wages
1.3.1.1.1 Differences between public- public wages
1.3.1.1.2 Differences between private- public
1.3.1.2 Market structure
1.3.1.2.1 Monopoly
1.3.1.2.2 Oligopoly
1.3.1.2.3 Etc...
2 Definition
2.1 "Misuse of public office for private gain"
3 (Ackerman, 2008, Myint 2000 and Aidt 2011)
3.1 Curruption trap
4 Consequences
4.1 Political
4.1.1 Reduces welfare
4.1.1.1 Negative impact on efficacy of public programmes
4.1.1.2 Questionable legitimacy of the State in the eyes of citizens
4.1.2 Spiral effects
4.1.2.1 (i) The more corruption it is, more difficult is to catch them
4.1.2.2 (ii) Honest people is discouraged to work in the goverment
4.2 Economic
4.2.1 Reduces economic growth
4.2.1.1 Deters investment
4.2.1.1.1 Under-investment human capital
4.2.1.1.2 Over-investment of public infrastructure
4.2.2 Increases the existence of illegal business
4.2.2.1 Underground economy/ black markets
4.2.3 Creates distortions of factor markets
4.2.3.1 Lower tax revenues
4.2.4 Affects income distribution
4.2.4.1 Inequality trap
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