CORRUPTION

Corruption

Corruption

1. Why do you think corruption can affect development or well-being (positively or negatively)?

Political corruption is most broadly defined as “the abuse of public roles or resources for private benefit” (Robinson, 1998, p. 3). Many scholars have attempted to narrow this definition by attaching additional criteria such as hidden transactions (della Porta & Vannucci, 1999), a subversion of public interest or public opinion, or a breach of codified law (Theobald, 1990). While all of these criteria are useful in forming a larger conceptual framework of corruption, no one of them is absolutely definitive. The broad definition therefore remains the most useful as an analytical guide.

The broad definition of corruption encompasses many types of activities. Some scholars such as Robin Theobald (1990) focus on patrimonialism, which is defined as a public order “in which the spoils of office are used by ruling groups to reward friends, co-opt potential and actual opponents, satisfy local and regional allies, as well as incorporate newly-emerging groups into the system” (p. 89). In other words, public funds are used by those in power to ensure that they stay in power through various forms of bribery. This type of activity is also referred to as clientelism by some scholars.

Both of these terms make reference to the existence of a patron-client relationship whereby private 'clients' are rewarded with public funds in exchange for their patronage. Another form of corruption, and one that is emphasized by many economists, is to some extent the reverse of patrimonialism. It is called 'rent-seeking,' and has to do with bureaucrats or those in authority who allow themselves to be bribed for such things as “issuing a license, approving an expenditure, or allowing a shipment across a border”. Thus, whereas patrimonialism sees public officials using bribes to achieve their desired ends, rentseeking activities involve the receipt of bribes by public officials in exchange for enacting favours for private interests.Developing societies and their people are not inherently more corrupt than developed ones. Yet, the argument is sometimes made that the lack of development opportunities automatically encourages corruption.

From this perspective, economic growth and development create social opportunities that are of potential benefit to people so that they tend to engage in honest activity to sustain themselves. The specific rewards for entrepreneurship and productive investment rise in relation to rent-seeking investment when there is sustained growth. A prospering economy can also afford to pay ...