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Corruption in Developing Countries
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Table of Contents
Executive Summary........................................................................................................................3
Introduction....................................................................................................................................3
Corruption and its Impact in Developing Countries........................................................................3
Types of Corruption........................................................................................................................4
Measures to Control Corruption.....................................................................................................4
Conclusion......................................................................................................................................5
Recommendations..........................................................................................................................5
References:.....................................................................................................................................6
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Executive Summary
Corruption in developing countries is in every department of government and civil control
where ministers and officers take bribes to do the work which is actually their duty. Foreign
investors are reluctant to invest in the country because of corruption. Bribery is dangerous
corruption type because corrupt officials take the money and let the illegal work happen.
Embezzlement of funds is usually done by government officials who stole the public money.
Corruption is controllable if concerned authorities are serious to curb it. Accountability,
transparency and across the board justice can control the corruption to minimum level. It is
strongly recommended that anti-corruption measures should be implemented seriously.

Introduction
Corruption is referred as misuse of power and authority to conduct fraudulent activities. It is
abuse of power which is poisoning the society especially developing countries where corrupt
officers and politicians do excessive level of corruption by joining hands (Julius, 2011).
Developing countries have less control over anti corruption because anti corruption officers
themselves involve in corruption sometimes (Abdulai, 2009). This report is based on corruption
and its effects in developing countries. Analysis of corruption in developing countries is
discussed with its harms to the country. Different forms of corruptions are briefly described as
well as implementation of anti-corruption laws.

Corruption and its Impact in Developing Countries

Corruption is major dilemma of developing countries because it gives injustice and immoral
practice to the society. Corruption is almost everywhere in every department of government
and civil control where ministers and officers take bribes to do the work which is actually their
duty (Fitzsimons, 2009). Corruption in developing countries is perceived as normal practice
because people are not much literate to differentiate or question the corruption of corrupt
officers and politicians. It is because of corruption that developing countries remain in same
stage even after decades because it damages the administrative system of the country.
Governments do not make serious efforts to strong the country’s economy rather they are busy
in money laundering and take the corruption money out of country through money laundering
(Julius, 2011).

Foreign investors are reluctant to invest in the country because of corruption. Country’s exports
become inadequate and imports remain high which widens the trade deficit. Tax revenue
officers and tax department also involve in corruption or has minimum authority to collect tax.
Corruption is at every level; even businesses do corruption by not paying taxes to the
government (Martinez, 2007). So at the end government has to take loan to bridge the budget
deficit. Thus corruption is root cause of all problems in the country as it destroys the economy,
merit, justice system, education system and moral practices (Martinez, 2007).
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Types of Corruption
Corruption is in different forms and types which lead to stolen of public money either way.
Some common types of corruption are:

Bribery: it is most common practice of corruption where people bribe the officer to get their
work done. Bribery is most dangerous because corrupt officials take the money and let the
illegal work happen. For example, a government officer takes money from contractor and
approves the road, by surpassing law, which is made by substandard material. Similarly police
officers take bribe and free the criminals. Custom officers also clear the goods by taking bribers
which lead to decrease in government revenue (Fitzsimons, 2009).

Patronage: Patronage is form of corruption where favoritism is given to the people in jobs
surpassing the merit criteria. It is moral corruption, or sometimes money is also involved, where
incompetent person is selected to do tasks he is not expert of (Abdulai, 2009).

Embezzlement: Embezzlement of funds is usually done by government officials who stole the
public money through cheating. Public money is diverted to personal gains via fraudulent
activities.

Kickbacks: corrupt officers get their share of approving a project or bid by going out of the merit
and reward someone who offers him money. By taking kickbacks, officials award the contract to
someone who does not deserve (Fitzsimons, 2009).

Electoral Fraud: it is common corruption practice in developing countries where elections are
not free and fair. It is illegal interference by concerned institutions that change the result of
voting in their ‘favorite’ candidates.

Measures to Control Corruption

Corruption is controllable if concerned authorities are serious to curb it. Accountability,
transparency and across the board justice can control the corruption to minimum level. There
are different anti-corruption laws in developing countries but main problem is implementation
of laws (Branco, 2015). Following measures are adopted by different developing countries to
curb corruption:

RTI Act: Right To Information Act developed by India, Portugal, Brazil, Pakistan and some other
countries where ordinary people can access the information. It increases the citizens’ power to
question the officials. People can get information on total expenditures and revenues by
projects of governments (Branco, 2015).

Government Corruption Control: There are also different committees who do check and
balance on government projects to analyze whether funds are using appropriately or there is
any embezzlement. Such committees work independently without any influence and pressure
(Branco, 2015).
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Speedy Justice System: Another measure used by anti-corruption departments is punishment

and reward system where fast and speedy hearing of corruption matters should be done. Heavy
fines should be imposed on officers taking bribes and imprisonment of such officers is
considered.

Conclusion
Concluding the report it is stated that corruption is a serious concern of developing countries.
Corruption is root cause of all problems in developing countries as it destroys the economy,
merit, justice system, education system and moral practices. It is because of corruption that
developing countries remain in same stage even after decades because it damages the
administrative system of the country. Governments do not make serious efforts to strong the
country’s economy rather they are busy in money laundering and take the corruption money
out of country through money laundering.

Recommendations
It is strongly recommended that anti-corruption measures should be implemented seriously so
that corruption can be curbed. Long term perspective is to develop strategies like social
strategy, legal strategy, political strategy and market strategy. In social strategy people develop
and maintain moral standard where they identify the corrupt individuals and their corruption.
Legal system should be developed for speedy and merit justice system to punish the corrupt
class. Decentralization of power is recommended political strategy as well as transparent way of
governance. Market strategy should be developing rules for ease of doing business and facilitate
private businesses to control corruption (Julius, 2011).
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References:

Branco, M. and Matos, D. (2015), "The fight against corruption in Portugal:

evidence from sustainability reports", Journal of Financial Crime, Vol. 23 No. 1,
pp. 132-142.

Martinez-Vazquez, J., Boex, J. and Arze del Granado, J. (2007), "Corruption,

Fiscal Policy, and Fiscal Management", (Contributions to Economic Analysis,
Vol. 284), Emerald Group Publishing Limited, Bingley, pp. 1-10

Fitzsimons, V. (2009), "A troubled relationship: corruption and reform of the

public sector in development", Journal of Management Development, Vol. 28 No.
6, pp. 513-521.

Abdulai, A. (2009), "Political will in combating corruption in developing and

transition economies", Journal of Financial Crime, Vol. 16 No. 4, pp. 387-417.

Julius Otusanya, O. (2011), "Corruption as an obstacle to development in

developing countries: a review of literature", Journal of Money Laundering
Control, Vol. 14 No. 4, pp. 387-422.