A Study Of The Effects Of Corruption On Economic And
Essay by 24 • January 16, 2011 • 3,857 Words (16 Pages) • 1,892 Views
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
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