197311
0
Description
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
