Team Public Sector

Corruption
Ombudsmen
Abir Hossain, 034
Abrar Hamim Apon, 106

Theoretical Roots
Md. Maruf, 004
Md. Salauddin Mina, 081
Md. Tamjid Sarker, 031

MEANING
"Public sector" refers to an office or an enterprise
which exists to serve a public purpose.
"Corruption" can be defined as a deviation from
standard and "ethical" behaviour or practice.

TYPES AND CAUSES

Corruption in the public sector occurs in the form of embezzlement, bribery and abuse of
functions.
Reasons to do so vary ranging from personal gains, greed and power through to from
fear of poverty or even losing office.
Causes and levels of corruption depend on factors including Size and Age of a Country,
Political Stability, Wage, Size of Government, Situation of Rule of Law and such.
Social Capital, that is the links and understanding between groups and individuals within
a society, also plays a crucial role.
Resource Curse, the existence of monopoly over resources, is another determinant.

THEORIES…
Principal-Agent Theory
Agents (Public Servants) often take the benefit of the information asymmetry that prevails between them and the
Principals (Citizens) with the aim of maximizing personal gains, and frequently to the detriment of the latter.

Collective Action Theory

An alternative explanation to the principal-agent theory that fails to explain why systemic corruption persists even
with strict laws and rules.
In a system of widespread corruption, there seems to be no "principled principals" and officers think that it does not
help to be the only honest person in a corrupt system.

MORE THEORIES
Institutionalism
Country and government institutional characters, according to this theory, explain corruption
in the public sector.

Game Theory
Lends ideas from economics and tries to rationalize corrupt decisions from officials.
"Prisoner's dilemma: conflict between individual and group rationality. Individuals fear
disadvantage if they refuse to act corrupt while others in the same positions accept to do so.
Content and Illustration Sources: UN,
Reading Materials, Internet.