Corruption Facts
Below is an extract from the United Nations Office on Drug and Crime website which illustrates the effects of corruption on a nation.
Each year, in both developed and developing countries, over US$ 1trillion is paid in bribes. [World Bank, www.worldbank.org] Corruption reduces a government's ability to provide basic resources and services for its citizens. Corruption and the transfer of illicit funds have contributed to the capital flight in Africa, with more than US$ 400 billion having been looted and stashed away in foreign countries. Of that amount, around US$ 100 billion is estimated to have come from Nigeria.Former President of Zaire, Mobutu Sese Seko (in power 1965-1997) is alleged to have looted the country's treasury of some US$ 5 billion—an amount equal to the country's external debt at the time. The late Nigerian dictator Sani Abacha and members of his inner circle looted and exported an estimated US$ 2.2 billion. The World Bank estimates that 70 per cent of the population of Nigeria live on less than US$ 1 a day. In Mexico, the brother of former President Carlos Salinas amassed US$ 120 million as a result of corruption, an amount that the World Bank estimates would pay for annual health care at current per capita levels for more than 594,000 Mexican citizens.
Corruption causes REDUCED INVESTMENT.
Investment in a relatively corrupt country compared to an uncorrupt one can be as much as 20 per cent more costly. [“Economic Corruption: Some Facts”, Daniel Kaufmann 8th International Anti-Corruption Conference 1997] Nations that fight corruption and improve their rule of law could increase their national income by 400 per cent. [“$1 Trillion lost each year to bribery says World Bank”, UN Wire, 12 April 2004]
Increasing evidence indicates widespread corruption in the JUDICIARY in many parts of the world.
Judicial corruption undermines the rule of law and government legitimacy. A corrupt judiciary cripples a society's ability to curb corruption. A report examining the judiciary in 48 countries found that judicial corruption was pervasive in 30 of the countries. [Centre for Independence of Judges and Lawyers, Ninth annual report on Attacks on Justice, March 1997, February 1999.]
Corruption allows ORGANIZED CRIME AND TERRORISM to flourish.
Corrupt practices facilitate drug trafficking and organized crime. Corruption is associated with money laundering and illicit international money transfers, which can be used to support mechanisms for international terrorists.
Strong POLITICAL COMMITMENT is required to combat corruption.
The United Nations Convention against Corruption is the first legally-binding global response to combating corruption. The United Nations Convention against Corruption obliges countries to criminalize certain corrupt practices, including bribery, embezzlement and money laundering. One year after being approved, more than 110 countries have signed the United Nations Convention against Corruption and more than 10 have ratified it. At the World Economic Forum in 1999, UN Secretary-General Kofi Annan challenged business leaders to join the Global Compact—an international initiative bringing companies together with UN agencies, labour and civil society to support nine principles in the areas of human rights, labour and the environment. In June 2004, the Leaders Summit of the Global Compact added action against corruption as a tenth principle. With that addition, more than 1600 companies worldwide committed to work together to fight corruption.
www.unodc.org
Some Causes of corruption
Poverty:
Poverty has been said to be the root cause of corruption and some people argue that without poverty, there would be no corruption. Most people would agree with this perspective that poverty definitely contributes to corruption. In many poor countries, the wages of public and private sector workers is not sufficient for them to survive. Many people therefore engage in petty corruption to make ends meet.
But the poverty perspective can definitely not be the only explanation. If poverty is the only cause of corruption; it will be difficult to explain why rich people and rich countries engage in corruptible transactions. For instance:
Recent World Bank estimates of the wealth which corrupt African leaders have stashed away in European banks stands at several billion US dollars. None of these leaders can be described as victims of poverty. Yet, by plundering national treasuries, these African leaders have unquestionably deepened the poverty of their people.
Greed and Dishonest
Corrupt people are greedy and dishonest. They do not feel any remorse for their actions and they are not bound by any code of ethics. They do not feel compelled to act with integrity or follow society’s moral requirements of what is right or wrong. Corrupt people are driven by selfish motives; they are egocentric individuals that have no regard of their actions on other people. To them, the benefits outweigh the needs of others especially if they know that chances of being caught are low.
Economic causes
A fertile ground for corruption will be created where:-
Ø There is great inequality in the distribution of wealth;
Ø Salaries/wages are very low as compared to the standards of living
Social causes
Corruption will also thrive where:-
Ø Leaders in key positions are incapable of inspiring and influencing conduct of the highest moral standards ;
Ø There is weak enforcement of laws or absence of these laws and codes of conduct;
Ø Religious and ethical teaching is weak;
Ø Large numbers of people compete for insufficient services
Ø Punishment is lenient
Organisational Features that Contribute to Corruption and other Crimes.
Certain organisational features if not properly taken care of can become fertile grounds for corrupt practices. These include:
(a) Inadequate instructions give an opportunity to staff to use their discretion when they are not equipped to do so at their level of decision making.
(b) Similarly, excessive instructions stifle initiative resulting in delays because staff may not understand them. The two situations are likely to result into corrupt activities.
(c) Unnecessary procedures that are redundant or outdated can cause delays which staff can take advantage of to demand for kickbacks for fast action.
(d) Insufficient supervision may lead to corruption as it gives room for staff to ignore instructions thereby creating space for commission of crimes.
(e) Outdated or unclear policies may give room for staff to interpret them as they wish and for their benefit because no one knows for sure what the actual policy is.
(f) Insufficient publicity of policies and procedure internally and externally may lead to staff to engage in corrupt practices and claim ignorance of them.