A Study Of The Effects Of Corruption On Economic And

INTRODUCTION

The purpose of this essay is to reveal what are the causes of corruption and the factors that

create the opportunities for corruption, what are effects of corruption on economic and political

development in Armenia and in different nations. And according to this findings and the

experience of other countries that have succeeded in their fight against corruption suggest the

policies for reducing corruption in Armenia.

The first chapter of the essay mainly deals with the terms, definitions, concepts and types of

corruption. Corruption as one of the oldest and most perplexing phenomenon in human society

exists in every country. The classical conception of corruption, as a general disease of the body

politics, was stated by ancient philosophers Plato and Aristotle. They saw corruption as

dysfunctional, which is destructive of a particular political order, be it monarchy, aristocracy or

democracy. Carl Fredrich defines corruption as a deviant behavior associated with a particular

motivation, namely that of private gain at public expense. Van kKlavaren see corruption as the

exploitation of the public. There have been a number of different attempts at defining corruption.

However no precise definition can be found which applies to all forms, types and degrees of

corruption, or which would be acceptable universally. More frequently used definition of

corruption is the abuse of public office for private gain. Public office can be abused in many

ways, for example, when officials accept or extort bribe; or public office can be abused for

personal benefits even if no bribery occurs through the theft of state assets or diversion of state

revenues.

The second chapter investigates the variety of causes of corruption and opportunities that

governmental structures create for corruption in Armenia and in different nations. Leslie Holmes

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(1993 p.157) the causes of corruption divides into three categories, cultural, psychological, and

system-related. And Klitgaard, R. (1998) brings three dimensions of institutional structure that

he considers most critical in bearing on the opportunities for corruption.

"1.The monopoly power of officials.

2.The degree of discretion that officials are permitted to exercise.

3.The degree to which there are systems of accountability and transparency in an

institution."

The third chapter examines the effects of corruption on economic and political development.

According some scholars some levels of corruption may encourage the economic growth. But in

case of high level of corruption most scholars agree that corruption has very harmful effects on

economic and political development. High scale corruption reduces the efficiency of public

spending, raise the budget deficit, reduce budget revenues, dissipate political legitimacy and

hinder the democratic development.

The last chapter examines the ways and policies for reducing corruption, such as reform of

civil service, judiciary system, tax and custom departments etc. and according to those policies

and the experiences of other countries suggest the policies for reducing corruption in Armenia.

But for proper implementation of those policies in Armenia is preconditioned by the free and fair

elections, politically educated people, and honest leader.

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WHAT IS THE CORRUPTION

As one of the oldest and most perplexing phenomenon in human society, political corruption

exist in every country in the contemporary world and it is not exclusively a problem of

developing countries. The classical concept of corruption as a general disease of the body

politics was stated by ancient political philosophers Plato and Aristotle. Plato in his theory of the

"perverted" constitutions-Democracy, oligarchy, and tyranny-worried that these regimes instead

of being guided by the law were serving the interest of the rulers. "These fundamental general

notions of corruption all practically define corruption as dysfunctional. For it is seen as

destructive of a particular political order, be it monarchy, aristocracy, or polity, the latter a

constitutionally limited popular rule, and thus by definition devoid of any function within a

political order." This classic conception of corruption continued into modern times, and is central

to the political thought of Machiavelli, Montesquieu and Rosseau. For Machiavelli corruption

was process by which the virtue of the citizen was undermined and eventually destroyed. "Since

most men are weak and lacking in the virtue of the good citizen except when inspired by a great

leader, the process of corruption is ever threatening. And when virtue has been corrupted, a

heroic leader must appear who in rebuilding the political order infuses this virtue into the entire

citizenry." Arnold Heidenheimer (1993 p. 25) Montesquieu