1

CORRUPTION
Outline:

I.

II.

Definition
i.

The use of public office for private gains

ii.

Can be political or bureaucratic

iii.

Can be in the private and public sphere

Forms of Corruption
i.

III.

IV.

It is a cruel injustice when the economy is continually raped by

corrupt officials and politicians, by drug mafias, by loan defaulters, by
those who misappropriate state patronage .. and they are creating
unethical norms which destroy the very fabric of a society
(Dr. Mahboob-ul-Haq)

Bribery, extortion, influence peddling, nepotism, fraud, vote-buying,

embezzlement etc.

Categories of Corruption
i.

Petty corruption (low level corruption)

ii.

Middling corruption (at enterprise level, kick backs)

iii.

Grand corruption (on ministerial level)

Corruption has a direct link with reduction of human

development

It directly hinders development and reduces potential for

sustainable economic growth

Low levels of human development breeds corruption It also

breeds vicious circle of corruption

Causes of Corruption
i.

Poor governance

ii.

Robert Klitgoard formula

Corruption = monopoly power + discretion accountability and low
level government salaries
Discretions: Trade restrictions, Govt. subsidies, price control system

iii.

Poor control or regulation

iv.

Level of accountability low at the handle of judicial system and civil

society

v.

No harsh laws for money laundering

vi.

Lack mechanism that control corruption

vii.

No social control (No NOGs, Civil Society group)

viii. Less bureaucrats are paid, the more it pays for them to be corrupt
ix.
V.

Materialism
Model Countries

i.

Japan, Singapore

VI.

handsome salaries, sever punishments i.e. why low level of

corruption

Impacts of Corruption
i.

Poor governance

ii.

Reduces economic growth decreases efficiency on which economy

depends
(No merits + monopolies through official backing)
Direct loss of welfare

iii.

Acts as an additional tax on investment by lowering potential return to

investor

iv.

Reduces governments resources and its capacity for investment

v.

Adverse effects on human development

vi.

a.

Reduces availability and increase the cost of social service

b.

Shift governments expenditure from priority areas spending to

where rent seeking opportunities are rife (New Mega Project)

Increases injustice
a.

vii.

Basic human rights and freedom comes under throat as key

judicial decision and police investigations are bribe oriented
and bribe - directed

Religious, minorities & ethnic groups come under threat

viii. Negative influence on economic and social development

ix.

Cartelization grow

x.

Trust between in the state and its citizens collapses

*

VII.

Credibility decreases and ultimately vanishes onway

Remedies / Shoulds
i.

Create zero tolerance for corruption

ii.

Combating core through a vibrant and aware civil society

iii.

Reducing artificially contrived monopoly power, limiting official

discretion, enhancing transparency, punishments

iv.

New regulatory powers may be created (privatize)

v.

Accountability requires informed citizenry

vi.

An architecture or agenda for coping with corruption

a.

vii.

Must involve civil society, political leaders, government

officials, business community, judges, foreign governments and
multilateral donors (across the board)

Realization that corruption is primarily a symptom of poor

governance needs economic, judicial, electoral, parliamentary and
bureaucratic reforms

viii. 3 sets of actions

VIII.

a.

Pare the path send shocks to system

b.

Easy shortcuts root out obvious sources of corruption

c.

Learning to fly address the causes of corruption

Remedies / Solutions to Corruption

i.

Accountability from the top

ii.

National Anti-corruption commission (Hong kongs Independent

commission against corruption)

iii.

Declaration of assets by public officials

iv.

Immunity to informers whistle blowers

v.

Transparency

vi.

Access to information

vii.

Ensuring time bond actions

viii. Learning from success stories

ix.

Role of civil society

x.

Role of vibrant media

xi.

Strong political will

xii.

Adequate salaries

xiii. Religious therapy

IX.

xiv.

Institutional building

xv.

Responsive governance

xvi.

Supremacy of rules and regulations

Conclusion

With respect to Pakistan

Statements
Ibn-e-Khaldun Writes
Civilization inevitably collapses from within as a result of corruption
moral decadence and disintegration of the institutions of
accountability.
Quaid Said
One if the biggest curses from which India is suffering, is bribery and
corruption. That really is a poison. We must put it down with an iron
hand.
*******
(Altaf Hussain Ansari)