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Skip to main content Skip to main navigation menu Skip to site footer. Abstract Universities can be corrupt through the abuse of authority for both personal and material gain. In order to reduce corruption, quality assurance mechanisms might include anti-corruption evidence as a criterion for accreditation. Another implication is that development assistance agencies that make investments in higher education, may have to consider the level of corruption when making those investments.
And donors or economic organisations grant fewer loans or aid to nations whose governance is murky. What is corruption. Our definition of corruption We are all affected How to stop it. Many acts of corruption deprive our citizens of their constitutional and their human rights. Economic implications. The need for good governance. Key principles of good governance include: Honesty — Organisations are the sum of their parts. Employees and managers who operate in good faith, with integrity and no conflicts of interest, will underpin the governance cornerstone of honesty and elicit trust from stakeholders.
Transparency — Decisions made, action taken and how it is reported to stakeholders must be communicated clearly and made easily available for those affected by the organisation. Responsiveness — Listening to stakeholders, taking action or reporting transparently should be done within a reasonable time of a request, complaint or concern.
Infographic: Visualizing Corruption Around the World
Management independent of governing bodies — There must be a separation of powers and chain of accountability. Friends and family members, or suspected conflicts of interests cannot overlap between layers of management and directors, boards or senior politicians. Independence ensures better judgement, assessment of risk and optimum performance.
This chapter tries to answer at least a few questions about corruption and the causes for it, its consequences and how to deal with it successfully. Trade and Global Market. The earliest records of corruption date back to the thirteenth century BC, to the time of the Assyrian civilization. From the found plates, written in cuneiform, the archeologists managed to discern how and who accepted bribes.
Under the Roman law, the criminal offense of corruption was defined as giving, receiving or claiming benefits in order to influence an official in connection with his work. Due to the prevalence of corruption in the country, this law was supplemented by a new law, which predicted compensation for damage in double value of the damage, and the loss of political rights for the perpetrator of the corruptive act.
However, this did not help alleviate corruption, especially due to the fact that corruption was most practiced by the members of the Senate and senior state officials, both in Rome itself and in the remote Roman provinces. The early Christian faith condemned corruption, yet corruption later also developed greatly in ecclesiastical structures, and achieved its peak with the selling of indulgences in the Middle Ages, all until the condemnation of the latter as well as of other immoral acts of the clergy, with the Pope at the head by Martin Luther.
Apart from the condemnation of corruption, the Reformation also led to a break with until then dominant Catholic culture and the emergence of Protestant ethics. As a child he was a hostage at the Ravenna court , Attila 1 noticed a high level of corruption among the state officials of the Western Roman Empire and how they appropriated the state money as a consequence, there was less money in the Treasury and therefore the taxes increased. He thus decided that if he would ever to rule, he would do so fairly and by oppressing the corruption in his own country.
The early feudalism was familiar with various laws that punished the bribing of courts also with death. Then, in late Feudalism, countries became virtually helpless in the fight against corruption, as illustrated by the case of France, which in established a special court in which should rule in cases of abuse of royal finances; however, these abuses embezzlement, extortion, bribery, scams, etc. The corruption was also widespread during the time of the Spanish Inquisition, where the victim of the accusation could make amends with money, which made the corruption, especially among the inquisitors, extensive.
Throughout the history, many intellectuals dealt with corruption or theorized about it one way or another. Machiavelli 2 had a low opinion on republics, considering them even more corrupt than other regimes, and according to him, corruption leads to moral degradation, bad education and bad faith. On the other hand, however, the great philosopher, diplomat and lawyer Sir Francis Bacon 3 was known both for receiving bribes and taking them. When he reached the highest judicial position in England, he was caught in as many as 28 cases of accepting a bribe and defended himself before the parliament by saying that he usually accepted a bribe from both parties involved and that the dirty money therefore did not affect his decisions.
The parliament did not accept these arguments and sent him to the jail where he spent only a few days as he was able to bribe the judge. Thus, although the corruption has been occurring in society ever since, it has only been given more attention in the recent period—the researches on the phenomenon and its negative impacts have become more common after , when countries and international institutions began to be aware of this problem.
The attitude of the public toward corruption was, until then, neutral. In , Kaufmann and Gray [ 1 ] found that:. Bribery is widespread, especially in the developing and transition countries; there are, however, significant differences between and within regions.
Bribery usually leads to ineffective economic results, in the long term impedes foreign and domestic investments, reallocates talents due to income and distorts sectorial priorities and technology choices for example, it creates incentives for contracting major defense projects or unnecessary infrastructure projects, but does not encourage investments in rural specialist health clinics or in preventive health care. Bribery is unfair, as it imposes a regressive tax, which heavily burdens in particular commercial and service activities performed by small businesses. Many other researchers and institutions the World Bank Institute—WBI, the European Commission, the United Nations, the EBRD have investigated corruption and its impact on macroeconomic and microeconomic indicators through various forms of corruption, as well as its connection with local customs and habits, and how it affects the everyday lives of people.
Most studies are therefore mainly the analyses of the effects of corruption on various economic indicators, such as GDP growth, investments, employment, tax revenues and foreign investments [ 2 , 3 , 4 , 5 ], or the study of various forms of corruption in relation to politics and the economic environment [ 6 ], the research of its social condition and various manifestations [ 7 , 8 ].
Although corruption differs from country to country, it is possible to identify some of the key common driving forces that generate it. What is common to all countries, which are among the most corrupt, has been identified by Svensson [ 10 ]; all of them are developing countries or countries in transition,.
The Corruption of Our Democracy
Regardless of the above, corruption cannot be assessed unambiguously, since there is never only one phenomenon that is responsible for the occurrence and the development of it; corruption always arises from an array of several, interrelated factors, which can differ considerably from one another. Among the most commonly mentioned factors that influence the development of corruption are: political and economic environment, professional ethics and legislation, as well as purely ethnological factors, such as customs, habits and traditions.
The phenomenon of corruption is strongly influenced by the political and economic environment.
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The more is the economic activity in the country regulated and limited, the higher the authority and the power of officials in decision making and the greater the possibility of corruption, since individuals are willing to pay or offer payment in order to avoid restrictions. A great potential for corruption is especially there where the officials are under the regulation given the opportunity to decide on the basis of discretion.
The level of corruption is also affected by the monetary policy. Goel and Nelson [ 11 ] in their research found a strong link between monetary policy and corruptive activity in the States. The States that have a well-regulated financial sector, not a lot of informal economy or black market are also less corrupt than those where the opposite is true. They also find that there is less corruption in the countries with higher economic and political freedom.
Dimant [ 12 ] puts it well in his claim that the level of efficiency of public administration determines the extent to which corruption can find fertile soil and sprout.
Such efficiency is determined by the quality of the regulations and permits, since ineffective and unclear regulations help to increase the level of corruption in at least two different ways:. The artificially created monopoly of power that enables civil servants to obtain bribes is based on their superior position and embedded in the system.
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On the other hand, however, ineffective and unclear regulations cause inhibition and therefore encourage natural persons to pay bribes in order to speed up the bureaucratic procedure. Corruption is also strongly influenced by the low salaries of public administration employees state officials , who are therefore trying to improve their financial position by receiving bribes, and consequently, the socio-economic situation of the government officials also affects the phenomenon of corruption.
The mentioned authors find that the private sector has higher ethical values, in particular those that affect satisfaction with work, than the public sector and is therefore less unethical especially regarding thefts and corruption. Indirectly, Svenson [ 10 ] also affirms this and states that in principle, the salary level of civil servants affects the receipt of a bribe the higher it is, the smaller the chance that the person will act corruptly. However, he continues on that a higher salary also strengthens the negotiating power of the official, which leads to higher bribes and he also states that, on the basis of existing research, it is very difficult to determine whether a higher salary causes less corruption, which means that the level of salary is not a decisive factor, but merely one of many.
The economy is unfortunately largely dependent on politics and often reflects the rule of law; various options for eliminating competition are exploited, and bribery is just one of the possible weapons in the struggle to gain a job.
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They are part of the game and everyone does it. The political influence of corruption is also manifested through the proverb: examples are attractive! If the top of the politics government, parties and leading politicians is corrupt, then corruption shows at all levels, and this evil at the same time spreads among the ordinary population, as nobody trusts the institutions or the rule of law. Johnston [ 15 ] thus points out useful thinking in terms of two types of equilibrium—the balance between the openness and the autonomy of the institutions and elites it leads and the balance between political and economic power and opportunities for cooperation.
Ideally, the institutions should be open to influences and feedback from different sources, yet at the same time sufficiently independent to effectively carry out their work. Where the openness and independence of the institutions are in balance, the officials are accessible, but not excessively exposed to private influences; if they can make authoritative decisions, while not using their power to arbitrate, the corruption is relatively low.
Lack of professional ethics and deficient laws regulating corruption as a criminal offense, and the prosecution and sanctioning of it are also an important cause for the emergence and spread of corruption. A great influence comes also from the ineffective sanctioning of corruption, which only increases the possibility of continuing the corruptive actions of those involved, creating at the same time a strong likelihood that others will join in the corruption due to this inefficient sanctioning.
The sole lack of professional ethics is a particular issue, as the administration requires different amounts of time to develop or change its ethics and professional standards, which is well known in transition countries in some, ethics and professional standards changed overnight and approached the equivalents in the developed democracies, and in some, they remained the same as in socialism. Therefore, due to lack of professional ethics in some countries that otherwise manage illegal corruption well, there is nevertheless a widespread form of legal corruption.
Corruption also generates a lack of transparency and a lack of control by supervisory institutions.