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Consequences of Corruption
Without doubt corruption has a negative impact on Socio-economic,political and institutional domains of the body politic of African states. Itsimpact is not only limited to the size of the payments involved, but thevery process of extorting and giving bribes has distortion effects that aresocio-economic and political, even in terms of economic growth.Corruption does not alleviate the effect of existing administrativedistortions as some have suggested. For example, bureaucratic delays areneither mitigated nor circumvented by the effects of corruption. In factcorruption reinforces bureaucratic delays and thus is not a cure. Its impacton the economy cannot therefore be over emphasized. Corruption has amore distortionary impact on the economy than taxation, because of theneed to keep corruption secret. Efforts to avoid detection and punishmentcause corruption to be more distortion than taxation. Corruption slowsdown investment and economic growth, the fact that bribery contracts areunlike regular contracts that are enforceable. Corruption raises the cost of doing business. Officials may introduce certain conditions to ensure thatthey get bribes, through delays and unnecessary requirements. Corruptiondiscourages new ideas and innovations. Corruption leads to the decline inreal per capita incomes, inflation, a widening budget and balance of payment deficits, and declining official production and exports:
Corruption promotes inequality among firms
Corruption leads to a reduction in the quality of products.
Corruption diverts funds from investment and other productionactivities.
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