Corruption

What is corruption?

Types of corruptions

Common characteristics

Globalization increased risk

Role of media

Impact of corruption

Objectives

The duty of youth is to challenge corruption.- Kurt Cobain

It is giving or obtaining advantage through means which are illegitimate, immoral, and / or inconsistent with one's duty or the rights of others.

What is Corruption?

“the misuse of public office for personal gains”

“as an act of bribery involving a public servant and a transfer of tangible resources”

“Corruption = Monopoly + Discretion – Accountability”On explanation this it is said that

corruption tends to flourish “Where officials have a monopoly power over a good or service, unlimited discretion in deciding who gets that good or service or how much they get, and there is no accountability whereby others can see what that person is deciding.

“Corruption is a crime of calculation, not of passion. People will tend to engage in corruption when the risks are low, the penalties are mild and the rewards are great."

Based on this, a heuristic formula was proposed for analyzing the tendency for corruption to exist-

5

Corruption - Not Just Bribery

• Money laundering• Other corrupt behaviours…

Lobbying? Political financing? Facilitating abusive tax avoidance? Mis-selling? Exceeding society’s licence to operate?

The following of the most common forms of corruption, as described in United Nation Anti-corruption Toolkit-

± Bribery± Embezzlement, theft and fraud± Extortion± Abuse of discretion± Favoritism, nepotism and clientelism± Conduct creating or exploiting conflicting

interests± Improper political contributions

Shades of Corruption

Shades of Corruption (Cont.)• Bribery

– payment made in money or kind and can be initiated either by the public servant or the beneficiary. It can be extortionary, collusive or anticipatory

• Favoritism, Nepotism and clientelism– a mechanism of power abuse implying privatization

and highly biased distribution of state resources, no matter how these resources have been accumulated in the first place.

• Embezzlement, Theft and Fraud– theft of government property and resources by

people who are entrusted upon to take care of it.

Shades of Corruption (Cont.)• Extortion

− extortion involves coercive incentives such as the use of threat of violence or the exposure or damaging information in order to induce cooperation. Office holders can be either the instigators or the victims of extortion.

• Abuse of discretion– the abuse of office for private gain, but without

external inducement or extortion. Patterns of such abuses are usually associated with bureaucracies in which broad individual discretion is created, few oversights or accountability structures are present, as well as those in which decision-making rules are so complex as to neutralize the effectiveness of such structures even if they exist.

• Improper political contributions − payments made in an attempt to unduly

influence present or future activities by a party or its members when they are in office. Distinguishing this from legitimate political contributions is very difficult.

Shades of Corruption (Cont.)

• Gap between group and individual interest .• Two or more parties since one can hardly be

corrupt with one’s own self• Consenting adults that have a common

understanding• Benefit furtherance• Misuse of the power that often drives a wedge

between intended and stated positions, for unintended benefits

• Existence of power that could be grabbed, usurped, entrusted or otherwise available

Common Characteristics of Corruption

Which Countries Are Corrupt? The Transparency International 2012 Corruption

Perceptions Index shows that the most honest countries are Finland, New Zealand, Iceland, Denmark, and Singapore.

The most corrupt countries are Haiti, Guinea, Myanmar, Iraq, Bangladesh, Chad, the Democratic Republic of Congo, and Sudan.

China, Brazil, Ghana, Senegal, Peru, Mexico, Saudi Arabia, India, and Egypt all rank in the middle of the 163 countries ranked.

Corruption Perception Index (2012)

* Source: http://cpi.transparency.org/cpi2011/results/

Corruption Perceptions Index

(Category Wise)

Corruption Perceptions Index 2012

Perception of Most Corrupt Industries In India (According To Transparency International Survey of 2012)

Factor conducive for Corruption

Lack of awareness Lack of proper Service-Level

Agreements Lax supervision and monitoring of staff

performance Discretion Absence of appropriate grievance

redressal mechanisms Obsolete policies

What Causes Corruption?

Most studies of corruption focus on institutional factors: Need stronger and more effective

institutions (World Bank) Lack of democracy Ineffective judiciary Unfair elections Lack of free media

Democratic institutions are not the source of clean government, but democratic practices contribute strongly to honest government.

Elections can be sources of corruption.

Media may be captured or may be ineffective.

The simple adoption of democratic institutions has not led to less corruption.

Unfair Legal Systems and Corruption Unfair legal systems contribute to corruption by:

Making it more difficult for the poor to have access to the legal system. People in the informal sector have no legal rights.

Shielding people at the top. The elite can evade taxes and bribe officials and not be prosecuted. If they are indicted, they may not be tried. If they are tried, they will not be convicted. If convicted, they won't go to jail.

Democratic Practice

Structural reforms may not matter much for corruption. However: Democratic countries are far less corrupt

than non-democracies. Countries with strong democratic

practices, especially treating everyone equally, are considerably less likely to be corrupt.

Democracies have less corruption overall:

On the 1-10 Corruption Perceptions Index, where higher scores indicate less corruption:

Free countries average 5.9, partially free countries average 3.2, and not free countries average 3.0

I show that high inequality leads to low out-group trust, which in turn leads to high levels of corruption.

The only institutional factor that matters for corruption is the fairness of the legal system, not the "efficiency" of the legal system.

Policy also matters: Strangling regulation leads to higher levels of corruption.

- Hinders social and economic development and increases poverty by diverting domestic and foreign investment away from where it are most needed;

- Weakens education and health systems, depriving people of the basic building blocks of a decent life;

- Undermines democracy by distorting electoral processes and undermining government institutions, which can lead to political instability;

- Exacerbates inequality and injustice by perverting the rule of law and punishing victims of crime through corrupt rulings

Impact of Corruption?

• Globalization has increased the risk of corruption but has also increased the opportunities to curb it…

Effect Of Globalization On Corruption

The media can serve many important functions, not just exposing corruption but also sustaining an open and transparent flow of information and fostering a climate of opinion that is increasingly intolerant of corruption.

Role of Media in Tackling Corruption

laws fixing accountability and encouraging transparency combined with efficient judiciary and free press provide ideal atmosphere to tackle the menace of corruption.

How to Remove Corruption?

Is There a Solution?

To combat corruption, you must fight economic inequality.

The best way to reduce inequality is through universal rather than means-tested social welfare programs.

It is often difficult to gain public support for universal social welfare programs in highly unequal societies because of:

Envy/jealousy. Perceptions that the programs will not

deliver the goods because of corruption.

These difficulties are among the reasons why unequal countries remain unequal--and corrupt, why inequality often forms a "trap."

Without policy change, there is little hope for curbing corruption.

Tackling Corruption

• Lack of awareness • can be removed by clearly specifying the guidelines and

information about the services.

• Lack of proper SLAs • can be taken care by a time bound service can be easily tracked by

the citizens if the information is freely available hence empowering them to seek penalty when the SLA is missed.

• Lack of accountability, supervision• can be improved through institutional diagnostics such as periodic

or social auditing which can be facilitated by well documented information at disposal.

• Discretion • can also be kept under check if these subjective decisions are well

documented and hence available for review.

• Grievance mechanisms and obsolete policies need to be directly addressed

Conclusion Coruption, as we know is the criminal thing that

is done by a person in a certain capacity especially with negative connotation, they do the illegal thing to make a benefit for them self.

We can difference coruption into 2 calsses. First is Petty corruption, its a kind of coruption where did by some people in a little capacity, they do a little coruption, but they do that many times.

The other cases of coruption is State capture that refers to a situation in which private interest has effectively taken over certain state functions, a type of corruption generally less understood by the public or by the media.

So, coruption is an illegal thing that we couldn’t do, because, with out coruption we can be a good generetion for our country. And then we can make our country clear from coruption and make our country better.

Thankz..

It was an overnight prepared presentation!! ;-PBrought to you by-

Gopal, Swapnil, Khushal, Harsh, Vaibhav, Parshuram, Ketan And

Kamlesh…