Corruption

Corruption: The Dark Shadow That Haunts Societies

The Definition and Forms of Corruption

Imagine a world where the rules are not just broken but rewritten for personal gain. This is the reality of corruption, an insidious practice that permeates every level of society—from petty theft to grand schemes involving powerful institutions. How can something so pervasive be defined?

Corruption is dishonesty or a criminal offense that involves acquiring illicit benefits or abusing power for personal gain. It may involve activities like bribery, influence peddling, and embezzlement, as well as practices like lobbying. Political corruption occurs when an office-holder acts in an official capacity for personal gain.

Recent research acknowledges that corruption involves sophisticated transnational networks and financial institutions hidden in secrecy. Strategies to counter corruption are summarized under the term anti-corruption, with global initiatives like the United Nations Sustainable Development Goal 16 aiming to reduce corruption substantially.

The Scale of Corruption

Corruption can occur on different scales, including petty, grand, and systemic corruption, which can be hard to measure. Indicators such as body fat have been used as a rough guide due to their correlation with accurate measures of corruption. Political economist Yuen Yuen Ang defines four types of corruption: petty theft, grand theft, speed money, and access money.

How do these different forms manifest in our daily lives?

Petty Corruption

Petty corruption occurs at a smaller scale and primarily happens during face-to-face interactions with public officials in various settings such as government offices, courts, and regulatory agencies. It is often found in poor countries but can also exist in wealthy capitalist economies.

Grand Corruption

Grand corruption is corruption occurring at the highest levels of government, subverting political, legal, and economic systems. It can be found in authoritarian or dictatorial governments as well as countries with inadequate policing. The system is divided into legislative, executive, and judicial branches to reduce grand corruption by making them independent from one another.

Systemic Corruption

Systemic corruption refers to corruption stemming from organizational weaknesses and factors such as conflicting incentives, discretionary powers, lack of transparency, low pay, and impunity. It can manifest in bribery, extortion, embezzlement, and other forms of malfeasance that become entrenched within a system.

The Impact of Corruption

Corruption undermines the very fabric of society, eroding trust between citizens and their leaders. It can lead to citizens being less likely to identify with their country or region. The term ‘graft’ refers to the unscrupulous use of authority for personal gain.

Examples include the Kaunas golden toilet case, where a shipping container was ordered at an inflated cost, and the Emirati city of Dubai, which is said to be an enabler of global corruption. A report found that British Members of Parliament received over £828,000 from countries involved in the Yemeni Civil War, including all-expenses-paid trips and gifts.

Addressing Corruption

Strategies to counter corruption are summarized under the term anti-corruption. Global initiatives like the United Nations Sustainable Development Goal 16 aim to reduce corruption substantially. Measures include protecting underdeveloped governments from external interference, addressing money in politics, and focusing on campaign finance.

The Extractive Industries Transparency Initiative aims for good governance of gas, oil, and minerals. Any natural resource can be affected by corruption, including water, land, forests, and fisheries. Corruption undermines environmental initiatives, as seen in Kenya and Benin.

Corruption in Specific Sectors

Corruption can occur in many sectors, including public and private industry, as well as NGOs. However, only democratically controlled institutions have an interest in developing internal mechanisms to fight corruption, due to public ownership and control. In private industry and NGOs, profit is a primary motivator.

Petrobras

Petrobras, a semi-public Brazilian multinational corporation in the petroleum industry headquartered in Rio de Janeiro, Brazil, has been embroiled in several high-profile corruption scandals. The company’s name translates to Brazilian Petroleum Corporation – Petrobras.

Odebrecht

Odebrecht is a privately held Brazilian conglomerate consisting of businesses in the fields of engineering, real estate, construction, chemicals and petrochemicals. It has been involved in numerous corruption cases, including the Mitterrand-Pasqua affair involving France’s sale of arms to Angola despite a UN embargo.

PhilHealth

PhilHealth, the Philippine Health Insurance Corporation, has been marred by a history of corruption and mismanagement. The COVID-19 pandemic intensified these issues leading to allegations of a ‘mafia’ within the agency exploiting funds through the Interim Reimbursement Mechanism and purchasing overpriced medical supplies.

Education Corruption

Corruption in education is a worldwide phenomenon affecting university admissions, higher education, and doctoral education. It impedes sustainable economic growth and leads to the formation of corrupt hierarchies. Authoritarian regimes encourage corruption and control universities during election campaigns.

The Role of Philosophers and Religious Thinkers

Philosophers and religious thinkers have acknowledged corruption in different ways. Plato recommends separating from corrupt institutions to maintain integrity, while the New Testament acknowledges the corruption of the world, advising readers to ‘deal with the world’ but remain unspotted.

The Global Perspective on Corruption

Corruption is strongly associated with lower economic growth rates and can lead to a lower stock of producible inputs like human capital in corrupted countries. It can also reduce productivity growth, investment, and job opportunities.

Some experts suggest that corruption stimulated economic growth in certain countries, such as South Korea under President Park Chung Hee’s ‘profit-sharing’ model, which incentivized government officials to support economic development by providing financial benefits. A similar pattern is seen in the American Gilded Age, where corruption evolved over time from thuggery and theft to more sophisticated exchanges of power and profit, resulting in unequal and risky growth.

Measuring Corruption

Several organizations measure corruption as part of their development indexes. The Corruption Perceptions Index ranks countries by expert assessments and opinion surveys since 1995. The Global Corruption Index covers 196 countries, measuring state of corruption and white-collar crimes.

The Fight Against Corruption

Creating bottom-up mechanisms, promoting citizens participation, and encouraging integrity, accountability, and transparency are crucial components of fighting corruption. The implementation of ‘Advocacy and Legal Advice Centres (ALACs)“ in Europe led to a significant increase in citizen complaints against acts of corruption and the development of strategies for good governance by involving citizens willing to fight against corruption.

Conclusion

Corruption is not just an isolated issue but a complex web that affects every aspect of society. From petty theft to grand schemes, it undermines trust, distorts markets, and hinders economic growth. The fight against corruption requires a multifaceted approach, involving global initiatives, local participation, and a commitment to transparency and integrity.