CAUSES AND EFFECTS OF CORRUPTION

Headnote

ABSTRACT

The article emphasizes the multiple sides of corruption, its causes and consequences. According to relevant studies on the subject, the threat that corruption presents increases with the level it appears at, the most dangerous being the high level corruption, "kleptocracy", and state level generalized corruption, "state capture", which blocks reforms as well as economic and social development.

At the same time, combating the phenomenon should not aim low-level corruption, as this affects the population and constitutes the basis that high level corruption is built on.

Keywords: corruption, bribery, kleptocracy, public office, JEL Classification: G. Financial Economics

"... for as the offerer of a bribe, if it be accepted, has vanquished the taker, so the person who refuses it and is not corrupted has vanquished the person offering" (Demosthenes, De corona 247 B.C.)

1. Introduction

Corruption has been and will be a permanent reality, the harmfulness of which hurts both the individual, and the society. The consequences turn this phenomenon into a highly media-covered topic, being used for gaining votes as well. Its adduction for personal or group interests can turn the subject into old news, and the lack of interest can diminish the efforts to combat it. Most of the times, however, its emergence in public debates is proof of the extent of corruption and its degree of nuisance.

A theoretical approach to corruption that can stand as the basis for practical means of fighting it or, at least, for population education, implies both a clear definition of the term and finding answers to some of the questions it raises, as well.

Although the specialized literature is very reach in theoretical approaches to corruption, we will only mention those that will clarify some of its causes and effects. The corruption's multiple causes, dimensions and effects have made researchers eager to come up with an antidote. The initial question, one with multiple answers and that generates in its turn other questions, deals with the significance of corruption. Hereinafter, no matter the questions and the answers, it is essential that both categories contribute to the phenomenon's diminution.

2. What Is Corruption?

Corruption has begun to be a topic in economic publishing since the early 60s, and at the time there were authors that thought...