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Corruption Pervades Poverty: In Perspective of Developing Countries

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Abstract

Corruption is beyond an evil, it is violation of regulations of the country, abrogation of rule of law and devastation of rights of those who are living depressed. It saps the energies, abilities and capabilities of the population in general and those of who are honest, sincere in particular. The causes and factors of it lay in political, social and economic mechanism of that particular society in general and in present scenario it provokes behind the process of globalization. It is an after effect of universalization of globe and globalization of population of the universe. The spread of corruption is easy but to control and root it out from the social network is difficult and somehow impossible. Once a social disease is caused to affect its paraphernalia cannot easily be removed from values of society easily. It will take time to make available benefits of justice to all the segments of society with equilibrium and realize its impact on those segments of society. Causes of corruption can be tackled one by one to make the society pure. However, it is noteworthy that one hundred percent eradication of corruption and poverty from society in not possible. By using all means it should be reduced to minimum possible level, so that society does not get affected from it at large. The corruption may not block the benefits of socio-political and economic progress to reach the poor, downtrodden, feeble and special segment of society. In democratic setup a strong independent system of accountability is a necessity, with the people, in-charge, who have viable integrity and honesty. Their loyalty to the nation should be beyond the limits of forces that stratify society on the basis of class, creed, and religions or sects etc. They may have clear, objectives based on logic and sound reasoning with the spirit of religiosity working as a dynamic forcein perspective. Society can survive for long without corruption, a corrupt society end at its own and fall in the hands of powerful, free of corruption societies. It is the first most responsibility of government to avoid cancer of corruption, politician can do it but they need it to an extent. Individuals with the help of administration and with political will can, also, do this job in a better way; only and only if political forces do not snub and discourage them. As weak politician take it as a check on their polity. Eradication of corruption and poverty requires a joint struggle and strong national will with honesty to achieve the target.
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South Asian Studies
A Research Journal of South Asian Studies
Vol. 30, No.1,January – June 2015, pp. 175 – 187.
Corruption Pervades Poverty: In Perspective of Developing
Countries
Umbreen Javaid
University of the Punjab, Lahore.
Saadat Faruq
Government Shalimar College, Lahore
Abstract
Corruption is beyond an evil, it is violation of regulations of the country, abrogation of rule
of law and devastation of rights of those who are living depressed. It saps the energies,
abilities and capabilities of the population in general and those of who are honest, sincere in
particular. The causes and factors of it lay in political, social and economic mechanism of
that particular society in general and in present scenario it provokes behind the process of
globalization. It is an after effect of universalization of globe and globalization of
population of the universe. The spread of corruption is easy but to control and root it out
from the social network is difficult and somehow impossible. Once a social disease is
caused to affect its paraphernalia cannot easily be removed from values of society easily. It
will take time to make available benefits of justice to all the segments of society with
equilibrium and realize its impact on those segments of society. Causes of corruption can be
tackled one by one to make the society pure. However, it is noteworthy that one hundred
percent eradication of corruption and poverty from society in not possible. By using all
means it should be reduced to minimum possible level, so that society does not get affected
from it at large. The corruption may not block the benefits of socio-political and economic
progress to reach the poor, downtrodden, feeble and special segment of society. In
democratic set-up a strong independent system of accountability is a necessity, with the
people, in-charge, who have viable integrity and honesty. Their loyalty to the nation should
be beyond the limits of forces that stratify society on the basis of class, creed, and religions
or sects etc. They may have clear, objectives based on logic and sound reasoning with the
spirit of religiosity working as a dynamic forcein perspective. Society can survive for long
without corruption, a corrupt society end at its own and fall in the hands of powerful, free of
corruption societies. It is the first most responsibility of government to avoid cancer of
corruption, politician can do it but they need it to an extent. Individuals with the help of
administration and with political will can, also, do this job in a better way; only and only if
political forces do not snub and discourage them. As weak politician take it as a check on
their polity. Eradication of corruption and poverty requires a joint struggle and strong
national will with honesty to achieve the target.
Key Words: Corruption, Poor, Bureaucracy, Human Dignity, Nepotism, Power, In-
equality, Mobilization, Accountability.
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Introduction
Corruption means dishonesty or decay. it is eminently clear that one dishonest
creates decay in the social system of society, but lust for money does not allow
one to think over it form the societal point of view, he/she looks in such matters
for personal gratification. Evidently, corrupts are dishonest and they cause decay
in the economic system of country and the amount gained in this way gets out of
main economic stream of the country and named as black money. Usually, the
controlled economy provokes this menace. “There are social costs of asymmetrical
power that potentates of bureaucracy enjoy vis-à-vis the supplicating applicants
and it should be added there is greater possibility of corruption here since they
potentates acquire in a targeting system the power to bestow benefits for which the
beneficiaries may be un-willing to make a facilitating payment”. (Sen, 1999:136)
In third world countries like Pakistan, no government official is ready to move
forward taking his duty with responsibility. He/she desires for illegal gratification,
legal and illegal are so confused with each other that it becomes hard to
discriminate between two, when legally responsible makes illegal demands just
having position or status in government system. The political personalities,
sometimes without knowing factual circumstances, play an ambiguous role,
characterizing this situation as vague for comparatively honest persons. This
creates an environment which is dis honest, and one does not remain accountable
to his public behavior, starts corrupt activities which are, secretly, appreciated in a
specific segment of society. This social approach leads to a behavior that is
turpitude in nature;it leads to create villous-ness in the social set-up. Being
objective it degrades the values of society in eyes of public it does an appreciable
job for the public in trouble.
The people responsible for their jobs/works irrespective of their education
level, training or cadre of job, they are attracted to gain money and meet the needs
with a lustful aptitude to maintain the standard of living so, they start mis-
appropriating the public money, with the confidence that with this gratification he
can oblige the politicians to gain their timely favors that ultimately affect
negatively the very roots of value system of society, manufacturing fictitious
sources of human dignity that degrade the best creation of this universe at the cost
of few coins that will not be used for public welfare in future. In governmental
decision making the hidden money is kept in the provision of budget, in addition
to actual cost of the project, for the purpose of more benefits and it is received in
the shape of quick-backs or for protestation. In projects of well-fare and usual
public interest political parties widely use the technique of advertisement through
propaganda, speeches and announcement in public gatherings, just to gain favor in
general. For this purpose huge amounts are utilized to win the sympathies of
masses and create a good will for themselves. This form is also expressed by
sociologists as the instrumental use of power for gainful lust satisfaction.
The government machinery has free access to revenues and grants. They
prepare projects with camouflaged budget for protecting their self interest, with
the connivance of different bodies it create a cycle of corruption; banks play a role
in extending free loan opportunities to powerful segments of society like
politicians just to extend their business opportunities and such others and later on
these loans are set a side without having a return of it. The big agencies of
business involved in business of electricity, petroleum or other government
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controlled bodies use the technique to gain money through agreement of price
fixing, it is always used as secret device, never unfolded these secrets to public.
For the purpose there are people who works as agents, they obtain the secret
middle man role, this role is stingy, concealed and cannot be noticed ostensibly.
Such potential persons play a vital role and they gain money in abundance with a
great speed. After gaining the status and money they start the projects to attract the
poor masses having fear of God and spirit of public welfare. There are many more
ways of corruption and their doors open in the courtyards of international
organizations. These channels are operative and they work to politically clench the
governments and those who fail to adhere to such channels do not become
successful in gaining name.
Causes of Corruption
Causes of corruption are many like nepotism, moral deterioration, consistency and
inconsistency of policies, devalued human capital, and misuse of authority,
privileges, contracts, commissions, trapping, bribery, and extortions;
incompetence, indolence, ineptitude, resistance, cheating and theft. Keeping all
this in view, here, concentration of power, in-equality in society, power projects
corruption, role of donor agencies in promotion of corruption will be discussed in
a little detail. All other causes are usually considered and have been brought into
the general knowledge of public.
Concentration of power
Concentration of power open the ways for corruption. It is a very much known and
acknowledged fact in big organizations, having centers of power deliberation. The
concentration of power on the one hand open channels for corruption and on the
other side parties offer their services potentially and sometimes openly, depending
upon the prevailing circumstances. This is correct especially with large
organizations. In such organizations systems of check and balance are made
properly but these protects the persons in power, in this way one is protected
against the accountability. This is what we usually call the authoritarian regime.
Such regimes promote/ encourage bribery jus to gain favors or retain power, which
paved the way for dishonesty, at the name of humanitarianism; leading to
organizational malfunctioning.The companies that have had high standards are
pulled out of biasness/ or they give up standard, just to win the competition to get
orders in future, even at the cost of bribery. Some times people have high standard
of living, beyond their means and level of income, to retain this standard they have
to use illegal and illegitimate sources to generate income.Corruption once starts in
an organization; it becomes difficult to control it, in the presence of same
employees. The corrupt employees of an organization join hands with the corrupt
employees of other organizations, and create a ma’fia.
In-equality, Corruption Relevance
It is not possible that all citizens may have equal income. The tax system is used as
an instrument to lessen and remove this imbalance in income, and reduce
inequality. Tax is fair, legal, open and has also been institutionalized. The people
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pay tax with heavy heart. Practice of tax evasion is common, which is illegal,
illegitimate, un-constitutional and corrupt. Usually at the time of making or
receiving payments strict calculations are made carefully, avoiding any loss to
government exchequer or the individual. Despite of all this, underhand practices
and methods are also working to make money; this make the rich richer and the
poor poorer.
The illicit payments are received as profit or gift, therefore, the
implementation of law does not become possible and it does not favor to control
corruption. Without creating a spirit of law abidance and obedience to law it looks
impossible to take necessary method applied for controlling this menace. Measures
against corruption cannot be made effective without making officers and official’s
law abiders. Standard of living may be fixed for every category of government
servants, taking into consideration the basic needs of people. Every one may have
enough according to his level of achievement, academic qualification etc. All
organizations, governmental and non-governmental may pay accordingly. A
satisfied worker having more opportunities to enhance his income cannot be
ambitious for illegal gratifications. A satisfied worker can be a devoted worker
having sincerity and obligations toward organization and society. Satisfaction
generates contentment whereas poor pays forces the employees to accept bribery
at the cost of integrity. It has also been observed that once an employee get
involved in corrupt activities higher pays does not matter.
Power, Corruption Relevance
In present days only the government offices are not involved in corruption, all
types of private organizations that can be local, national, international or NGO’s
have started corrupt practices. It is a basic conjecture that public or private office
in charges, who are also decision makers, should never use their offices or
authority for personal gains. Government offices are for public and service
providers. “There lies a great problem of modern times that public institutions
function under private control, especially in developing world or these work under
the influence of political leaders directly or by their captures. Seize the state, seize
the day”.(Hellman,2000: 10) It is said that power makes corrupt and more power
makes more corrupt. It reflects that if power is used to control corruption, it fails
if the authority is not honest, fair and without having a sense to resolve the
problems of public.
The collective effect of rules of inheritance encourages the followers to
patronize their children to hold the same office, his father was holding, this grind
down the freedom of public institutions, like institutions responsible for policy
making, bureaucracies, courts, armies and such agencies that are controlled by
government. The end result of this patronage forces the government to privatize
these institutions and government institutions start to serve commitments,
objectives and benefits of private persons. “At its core, this private use of public
office and resources is the core definition of corruption.”(Burnell and Vicky, 2005:
301). It has also been observed historically that long standing of a leader, military
or public, usually makes the offices corrupt.
As it has already been discussed that it the power that makes the authority
corrupt. Certain pockets in the system of government have a role in generating
corruption and corrupt activities. These pockets and other zones of power
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concentration need openness and accountability and also these may follow the
standards of sale and purchase duly approved by the respective competent
agencies. Unlikely the bodies responsible for accountability work beleaguered or
they are allowed to work in strictly controlled environment and are kept under
observation by the system with contraryaffect. It is a universally accepted fact that
corruption is a social disease having its roots deep in society; it is also known that
it always is under the umbrella of political forces. There can be difference of
degree of occurrences and the focus of vision.It looks eminently logical to invite
the attention of reader that a proper training of officers having a spirit to serve and
fear of Allah can deteriorate such occurrences. Free press and public demand also
works well to reduce the size of corruption; however it has to mention that a
segment of society very rarely appreciate the corrupt activities to a short extent
and limit.
Donor Agencies, Corruption Relevance
It is generally accepted fact that international donor agencies do promote
corruption in poor, under-developing countries of third world, which was once,
colonies of civilized developed world. The developed world utilized resources of
these colonies in the best interests of their own mother lands. Now they provide
capital for development in these third world countries which is never evoked
properly and is misappropriated causing the cancer of corruption in respective
societies. The IMF provided huge amounts of money to poor countries for
structural changes causing social uplifts and improvements. This money was used
in such a way that most of it was looted, corrupted and used illegally causing a
chasm of poverty in these countries.“In December 1996, the IMF started
distributing $24 million as enhanced structural adjustment loan, but to date not one
private or parasitical company has been put in receivership for the hundreds of
millions of dollars which went astray via import support. This casual approach to
large-scale corruption has been the norm among donor.”(Narasaiah, 2005: 07)
The donor agencies do not provide funds according to the demand of host
countries; rather they have their own policy in providing loans. These institutions
extend assistance to some countries, whereas they curtail their services for other
countries. Moreover, they are enhancing aid to governments many times just to
keep these on the lines of donor agency, the public suffer at the cost and a distance
between government and public get widened. The governments look toward these
agencies favorably; on the other the public consider it as their enemy. The money
aided to governments enhances opportunities of corruption of establishment,
projecting this to civil society makes it more corrupt. In offices mostly table work
is on increase and political acceptability of local persons employment is increasing
corruption in level and intensity, as some charlatans and opportunists crowed
them. The donor agencies over look the charges of misappropriations leveled there
upon, because corruption supports in digging out new sectors of development. In
this respect, areas of spending are made eminent that attract donors and they lean
to make the people more corrupt. Similarly, incompetent and corrupt state
mechanism attracts the oppressed people for provision of mercy and gain political
strength at very low cost and lot of benefits. In brief, such money provided in the
shape of aid creates and re-creates the options for corruption. There is a saying in
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Urdu” MAL-E-MUFT DIL-E- BAY RAHAM” means easy money is spent
carelessly.
Relevance in Corruption and Poverty
It is noteworthy that corruption stops or slows down the process of development
and progress in society. It increases the cost of production, depresses investment
and blocks the growth, the public confidence on its national institution tumbles
down leaving a negative impact on entrepreneur. The public expenditure and
financial management get undermined, leaving very destructive effect on
investment in the very prime sectors of public interest, education and health. In
this respect deterioration in public investment promotes and projects poverty in the
country, government develops a biased attitudeand investment is made to
safeguard the interests of rich and well-off segments of society. Government
expenditures get skewed toward rich people, government spends on non-
productive projects that encourage backsliding tax system. Low income people
starts avoid investing their savings, it has two pronged negative impact on
economy and the poor, on the one side it causes poverty and on the other it reduces
public’s conscious saving aptitude, generates empathy. Poor and rich gap
increases, poor reduces chances of increasing income and borrowing from banks
and other such agencies. He starts living at the mercy of rich which is an
agony.Corruption directly and in-directly makes the poor vulnerable, stigmatize
them in society, enhances chances of further corruption with all its adverse effects.
Poverty Alleviation in Prevalence of Corruption
The South Asia once known as the ‘Golden Sparrow’ is under crux of poverty
since long, the English started ruling it. As these nations are poor so, extreme poor
have been out of attention and neglected, relegated. Poor have been living in a
culture of poverty from many generations, their vision is pessimistic, and they
open eyes in hunger and poverty without transferring a sense of optimism to next
generation, they die in the state of poverty. The political leaders believe in
economists who appreciate the agencies responsible for development with the
thoughts that poor are the real beneficiaries of development through ‘trickle down
effect’ which provides a core affect dynamically in eliminating poverty. But
socially this is not happening, poor are going to be poorer and the rich are
becoming richer. The policies are not meeting objectives as mentioned there in.
The benefits of ‘trickle down effect’ can only be shifted to poor in case the
prevailing conditions of society are socially stable, peaceful and having serenity
there in. Otherwise, only anti-poverty thinking provoked in poor can assist them to
improve income and get ramification from poverty. The poor are living without
resources and have no ability to produce in abundance or surplus to capture the
market, rather they need ‘safety nets’ to meet basic needs for day to day bodily
requirements. So, a ‘safety net’ approach may be adopted as a strategy to inculcate
a sense of being hood in them. For the purpose resources may be relocated to poor
from the self-motivatedparts of production accrual. Extraordinarysalaries can
produceadditionalassets for poor, from where they can spend a part of it, also can
save a portion for future investment. Low wages are an adverse check and obstacle
for saving. The exposed or marginal poor are looked as amassiveencumbrance on
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society and do not become part of growth and production system. In Pakistan
agricultural land is dividing into small unworkable pieces, that not produce
enough to meet the subsistence level of land holders, it is the major source of
poverty generation and the sons of land owners are not ready to accept it that they
have to have other sources for their livelihood. The government has to adopt new
strategies to make poor active, dynamicby breaking lethargicity and having
opportunities of rising income, protecting them from the curse of bribery and
corruption.
Poverty Alleviation,Investment and Mobilization Perspective
It is a considered opinion of social scientists and researchers that making huge
investments which are in the control of rich and influential people one cannot help
the poor to pull them from poverty. The poor can get freedom from poverty only if
their available resources are mobilized and exploited in their own interests; this
provides freedom to them from poverty and generates new activities for them. This
will not only help them from the shackles of misery of poverty but also uphold
their dignity as human being.The social forces that work to generate poverty will
be discouraged. These same social forces actively reflect systems of resources
distribution in society. These systems need a change rather reversal in cycle of
function and application. In present days rich are making money by many ways;
through profits, by not paying taxes, by bribing the authorities and the rest by
multiplying amounts, earned in such a way, through investment. In this regard rich
have a lot of chances and opportunities to become richer, whereas the poor are
handicapped, without opportunities to multiply their meager available resources.
The provisions of generous pro-poor pricing policies, improvisation of credit
system in favor of poor, social and productive services that neglected poor in
past and channelizing gender discrimination can reverse systems to project
poorand bring a positive change in their income, letting them free from the
chains of slavery to poverty. A deep look in the perception of poor and
poverty one can suggest measures to alleviate poverty.
It is crystal clear to note that all poor are not idle. Sometimes poor is not used
as a ‘noun’ but as an ‘adjective’examples of it can be that the word poor
added to farmer, herdsman, fisherman, barber etc. because they get involved
in activities that fall under the prevailing circumstances and conditions which
has low lying features and been defined by societies. The poor do activity,
earn money and invest a part of it without changing their social status. They
serve the community, have less earning, and needs to upgrade their production
and growth, less activity means less productivity means generating poverty.
The alleviation of poverty is usually considered a substantialassignment and a
burden on society neglecting the benefits of its reduction. It provides health,
education and truthfulness in poor community and final benefits of it goes to
society for ever. For this new outlook and vision is required to be given to society.
Poverty alleviation needs investment to augment for further growth with
development that generates fresh benefits and activities in the best interests of
poor; it means benefiting the poor and economy of society. So, poverty is a
problem of production and poverty alleviation is a matter of investment.
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By turning the attention of socio-economic institutions to provide finances to
poor can work accurately to alleviate poverty from the society. After setting an
example in Bangladesh about poverty reduction, financial institutions are ready to
provide finance to the un-organized groups of poor. New institutions can be
created with the approach to finance and extend aid to poor, just to utilize their
potentials for community development; this will enable poor in creating their own
institutions, institutions are old or new poor has to participate to gain benefits to
get rid of strong clutches of poverty. The objective of participation of poor in
socio-economic activities is to mobilize poor as an individual as a community or in
group form, only and only then benefits of such activities can be for nation in
general and for poor in particular. This shifts status of poor to producer or an actor
of activity in institution. The theoretical perspectives are not available on it and all
these are in actual practical experiences of society which have not been noticed by
formal theorists. It is evidently clear that poor can be made an asset of
development as manpower or human capital in social or economic nature. A focus
on vulnerable can change their status from poor to social capital; it needs only
provision of safety net and social spirit to accept extreme poor as capital.By
focusing from a distance poverty can be seen present every where in the world, a
close view of it reveals a specific situation having opportunities for poor and this
needs further help to strengthen the individual as person by flourishing collective
means of poor to reverse the dynamics of poverty, this can only be by
collaboration of poor as one.
Poor as producers were neglected in the past and benefits of production were
used in favor of capitalists. The labor of poor was neglected after making
payments of his labor and in this respect he was kept away from the process of
technological development of organization and also from the process of
capitalization. This distances the poor from technology, organization and
capitalization; widened the gap in current and potential poor, which is a social
capital for development. Socio- economic investment on poor is never considered
a failure. A failure can be of the policy makers.
Accountability to Break Corruption
It does not always work to check or to deteriorate corruption. It becomes too
difficult to sort out the established potential practices and channels of
bribery/corruption. The cost of accountability becomes greater than the amount
misappropriated/ bribed/ corrupted. The logic of accountability is not to stop the
misappropriation/ corruption, rather to provide openness in decision making and
also to make the process transparent. All the DDO’s, of government and non-
governmental sector may groomed from very beginning of their life, should be
honest and loyal to nation, this can encourage honesty. Moreover the benefits of
honesty may be provided to them. It is the way to manage to save the cost of
corruption and channelize the economy of the country. Otherwise, the cost of
accountability will rise to the actual cost of project.
The socio-political upshots also function to cause corruption; by controlling
these repercussions corruption can be controlled, minimized or reduced. One thing
is evidently acceptable that secret dealings cannot be heeded for longer time, all
secrets open after a certain time period. The officers may be trained to be exposed
to public, open before the society at large. This can increase the confidence of
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public on government and the governmental functionaries can do their duties with
full of confidence and fearlessly. Some of the governmental officers do corruption,
considering it as a corporate action in which all has their share and it is distributed
among them, they are honest while doing all this. A person, an officer or citizen
not involved in corrupt practices remains open, exposed to society and work
fearlessly.
God fearing, independent, honest and having vision for the future of society,
auditors with these qualities “can play a role in reducing corruption. The agency of
anti-corruption can reduce the volume of corruption and cannot stop it at all. Plato
suggested in the law that a strong sense of duty (responsibility) would help to
reduce corruption. But he also noted, wisely, that this would be ‘no easy task’.(
Sen, 1999:276-77).
Controlling Corruption Techniques/ Strategies
All those persons who are dealing with matters relating to finance, they are to be
trained to deal with the affairs honestly, without any capricious behavior and
attitude. The persons dealing with the affairs at state level or at any other such
level who are the DDO’s they may maintain their integrity and also have a soft and
cordial behavior towards others having generosity of character; they may have
feelings to sense and realize the depth of pain and agony of others. He may not be
a person of such kind that has the aptitude to take theadvantage of others
sufferings. Our economic system has been formulated in such a fashion that the
money, ‘a standard to evaluate the worth of other thing’, itself reducing in size,
weightage and value. Therefore, how it is possible, that other items will maintain
their worth and value. The reduction in the value of ‘standard’ that is money
ultimately reduces the importance and value of human behavior. It becomes too
difficult for the human beings who face daily matters of devaluation that they
retain the standard of ethics. All other techniques used to control corruption are
formal and are not reliable to the extent of purity and paucity, rather these,
sometimes, enhances the cost of control more than the actual expenditures.
Moreover, involvement of more people increases the chances of corruption, as in
present age people accept social adversaries happily. The government formed the
institution of Anti-Corruption to control the corruption that department is
popularly known as the “anti-corruption’ showing as promoter of corruption and
not controller of it.
Established working channels in the Bureaucratic setup may be shortened for
the ease of general public. This will also reduce the chances of corruption. The
procedures may widely be advertised for public awareness, also, to avoid
complications. The forms for applications may be framed in easy language
demanding proper information. Looking at the ways of corruptionthose injuries the
socio-institutional formation of a society, here lies options open for governments
to switch corruption and shrink its special effects. Rose-Ackerman (1998)
suggested anapproachintended at cumulating the profits of being honest and the
costs of being corrupt, a functionalamalgamation of incentive and reprimand as the
dynamic force of restructurings. This is aenormousmatter. Six harmonizing
methodologies are discussed with the pragmatic hope for improvement of situation
of corruption.
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Compatible salaries to Devaluation
Usually the civil servants are appropriatelyrewarded or obviouslybelow par paid
will clearly affect inspiration and encouragements. Employees having
truncatedsalariesfind themselves under compression to raise their incomes in
“unofficial” methods, using their official status and position. Van Rijckeghem and
Weder (2001) did experimentalstudy and established that in developing
countries“an inverse relationship in the level of public sector wages and in the
incidence of corruption” exists.
Openness /Transparency in government Expenditures
Purchase of services and goods, tax indemnities,subsidizations, additional-
budgetary resources, easy credits are under the control of politicians, the
governments, also, organizecommunalassets. Governments collect taxes, boom
capital marketplaces monetaryescalation.Accept foreign aid and
evolvecontrivances fordistribution offunds to satisfy a diversity of needs. In some
countries it is done in a quitecrystal clear way and hard work is made to usefunds
in the interest of common man. The degree oftransparency and openness ofa
process is directly related to the provision of opportunitiesof malfeasance and
misuse. In democratic societies government doings arediscussed and analyzed in
public to search out the advantages of such public plansalso tomake a modification
in original plans.This is howfreedoms of press and literacy level perform an
important role for improvements.Adynamic society of a respective country having
structures of the culture forparticipation has always an
importantconstituentauxiliary strategy designedtotumble corruption.
Malicious Red Tape
It has been observed that there is a firmrelationship between corruption
happening/opportunities and the intensity of official red tape. Indicators of doing
business suggest the eliminating of needless regulations to safeguard the essential
controlling functions of the state. The regulations that are silent but preset in the
books of countries, these maybe discarded and removed from the books of
regulations. These are like dead bodies and may be buried forever Rose-Ackerman
(1998) noteIt as “the most obvious approach is simply to eliminate laws and
programs that breed corruption.”
Swapping,Degenerating and Distorting Subsidies
The government as a matter of fact wants to give economic relief to public through
subsidies. Unfortunately itgarblesmotivations and createsbeginnings for
corruption. The IMF studied in (2013) and concluded that subsidies of energy
sector provided to the consumers are equivalent to 2.5 percent of
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internationalGDP. These subsidies are very extravagantlydisseminated, the richest
segment of society takes major chunk i.e.;60 percent, it serves only the richest
with 20 percent households, in use of gas. In case these subsidies
areremovedconsequently producing very positive accouterments. The money
mongers of a society remain active to take advantage of subsidies and start
smuggling, or create artificial shortages, and black markets are
flourished.Provisions of subsidies become epicenter of corruption causing
infructuousstructures. It would be for better to supplantluxurious, degenerating
subsidies with cash award to target the expenditures of poor.
Starting International Treaties
In a globalized economy corruption increasingly has a cross-border aspect;
therefore international legal structure to control corruption is significantchoices,
available for national governments. These structuresarecultivatingconsiderable
importance with the passage of time. Two conventions in2005 and 2013, under the
auspices of UN had suggested measures to have a check on corruption, to the
member countries of UN. Theseconventions to reducecorruption have became a
promisingscheme as it crafts a global structure involving industrialized and
developing countries and shields a broad variety of issues, containingnational and
international corruption, coercion, protectivedealings, anti-money
filteringrequirements, skirmish of interest regulations, resources to recover
unlawfulreservesdumped by officials in banks, along with others. As the United
Nations isfunctioning without applying power, therefore role of respective
institutions belonging to a nation become important to develop a nation’s
monitoring instruments to control corruption andevaluate government obedience
to conventions.Vigorousapplication of anticorruption laws can only control the
hazard. Promotion of trade may not be taken to weakenthe mechanism corruption
control. Governments are continually having double standards ofproscribing
bribery in the country.
Modern Technology Projection/ Use
The governments provide a number ofchances for corruption by distorting
established rules of control, it has been noted that adirect interaction with
government servants of peopleunlocks the way for fraudulentbusinesses. One
technique to discourse this aberrant is the use of voluntarily available information
to boost relationship between administrators and civilian keeping them at a
distance; the use of Internet caneffectively used as a tool to lessen corruption. In
some countries the online policyenables government’s communications with
civilian, businessmen etc. Ithas mainly beeneffective in the areas of tax collection,
public purchases and to break red-tap. In general the public purchases are the
sources of corruption dealing the affaires of state at large. The governments should
restrain 5-10 percent of GDP for purchases of goods and services. In granting
South Asian Studies 30 (1)
186
contracts compriseprocedures of bureaucratic preference, and the countries have
long transfers,conspiracy in public procurement and kickbacks, and alsochoice for
ways that pledge suitable openness with competition. Steamrolled fields for
contractorsindependently clear bidding dealings. The measures discussed above
have targeted at struggling corruption, thephilosophy behindis of eliminating the
chances for corruption by changing impulses, by dismissingambiguities and
stoppinginappropriate rules that increase corrupt behavior. However amethod of
punitiveretribution onharm of the rules can be far more operative,reinforced by
applications to emphasize the ethical foundationof socialconduct.
Ibrahim Maslow in 1943 described the theory of human needs satisfaction
having a hierarchy of five stages. Where one stage of needs is satisfied then and
only then an individual can move to achieve the next stage. In this respect one
have the opportunity to reach the fifth stage which is self-actualization, the reality
of one’s own self, when one get awareness of his own self s/he recognizes the
‘God’, which is ultimate of Allah, who created this universe for his recognition.
The objective of mentioning this theory is that policy makers while making
policies may consider it and design a policy keeping in view the needs and
priorities of different segments of society. This is to make the poor so affective
that they never feel as neglected in society. It is human need to meet most of the
needs and have recognition in society. Saying of the great leaders become less
effective if people needs are not met. Kitgaard has proposed a formula:
Degree of corruption= Monopoly+Discretion-Transparency-Motality
Corruption is inevitably a necessary evil, after a certain period of time it is
taken for granted, accepted and acknowledged as fringe benefit. It flourishes and
grows certainly in a society in transition and become out of control for a certain
period of time, that reshuffle the social systems and gives new faces to population
for their recognition.
Conclusion
Democracy needs freedom of thought and action, in well defined limits, without it
democracy cannot works, but the law of jungle, similarly the currency works as
oxygen carrier in blood vessels of institution of economics and finance
systematically. Its circulation in the hands of public energizes the economy and the
system of economic mobility in itself. The political forces which are a necessity to
consolidate the social forces of society to run the system of governance and
control, needs economic assistance to have vitality for its own life, just like heart
that supplies blood to the whole body but for its survival it also needs blood
circulation within its own blood vessels otherwise whole body will suffer. Similar
is the condition of institution of economics and politics, the corruption let the
currency flow in the economic system but out of the vessels, therefore, it weakens
the economy instead of making it strong, energetic and fruitful for the society.
When these blood vessels get squeezed due to lack of blood within these, the share
of poor does not reach to them, causing paralysis in the major portion of
population. It becomes a factor of deteriorating and slows down the functions of
economy, the continuity of this process, if unchecked, destruct the systems of
Umbreen Javaid & Saadat Faruq Corruption Pervades Poverty:
187
society; and it gets imbalanced; any other political force from within the society
can get the benefits of it, without remedying the actual cause, so, corruption
becomes socio-political and economic cancer within society. “Precaution is better
than cure, for which at least more than one generation suffer and society lags
behind to its contemporary societies.”
This article is an eye opener for government, economic experts, and policy
makers and also for the general public who can raise their voices to protect
society, make it strong through industrialization and such other tools of
development. For every disease there is a remedy, it is the law of nature. A strong
political will is the preliminary need to end this menace from society, without
which no other remedies can become functional. Leadership of all levels, national,
provincial, bureaucratic, and managerial from all walks of life may dynamically
strongly stick to get rid of corruption, then and only then it can be brought under
control.In this article cause, factors, effect of corruption in raising poverty in
society and remedies to poverty reduction, also control corruption, importance of
accountability has been discussed stressfully.
Refrences
Sen, A., (1999), Development as Freedom, New York: Anchor Books.
HellmanJ.S. Jones, Geriant and Kaufmann, D. (2000). Seize the state, seize the day,
corruption and Influence in transition, World Bank Policy Research Working Paper
No. 2444, World Bank. Washington D.C.
Burnell, P. Randall, V. (2005). Politics in the developing world, Oxford University press,
New York.pp 301.
Narasaiah, M.L. (2005) Corruption and Poverty, Discovery Publication House, New Delhi.
Rose-Ackerman, S. (1978) Corruption: a study in political economy, Academic Press, New
York
Rose-Ackerman, S, (1999) Corruption and Government: Causes, Consequences,
andReform, Cambridge press, UK
Kitgaard, R, (1988), Controlling Corruption (Berkeley: University of California Press), 75.
Rijckeghem, V. Caroline, and Weder, B. (2001), Bureaucratic Corruption and the Rate of
Temptation: How much do Wages in the Civil Service Affect Corruption? Journal of
Development Economics 65, 2, 307-331.
Rose-Ackerman, S. (1998) Corruption and Development. Annual World Bank Conference
on Development Economics 1997: pp 35-57.
Biographical Note
Dr. Umbreen Javaid, Director, Center for South Asian Studies and Chairperson,
Department of Political Science, University of the Punjab, Lahore.
Saadat Faruq Zahid, Principal, Government Degree College, Mustafa Abad,
Kasur-Pakistan. _______________________________
... Empirical literature in the field has consistently reported a negative correlation between economic growth and corruption. These studies have shown that developed countries are known by low corruption levels and a relatively high growth rate [1], and by contrast, most developing countries are known by high poverty and corruption levels [2,3]. ...
... The questioning is motivated by the fact that studies do not test whether there is a growth-enhancing or growth-reducing level of corruption, and not one study thoroughly identified the corruption level that will allow an optimal growth. 3 The Impact of Corruption on Economic Growth: A Nonlinear Evidence DOI: http://dx.doi.org/10.5772/intechopen.108876 ...
Chapter
Full-text available
On basis of the lubricating effect hypothesis of corruption (grease-the-wheels hypothesis), the impact of corruption on growth seems ambiguous. Therefore, the question that arises is to what extent corruption can be tolerated and at what threshold it has detrimental effect on an economy. This chapter investigates the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear, and we assess whether the belief that corruption has detrimental effects on the economy is always true. In this chapter, a panel data analysis has been used to examine 65 countries over the 1987–2021 period. Our findings are that corruption can have a positive effect on growth. The results indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth.
... Empirical literature in the field has consistently reported a negative correlation between economic growth and corruption. These studies have shown that developed countries are known by low corruption levels and a relatively high growth rate (Cooper & al, 2006), and by contrast most developing countries are known by high poverty and corruption levels (Chetwynd & al, 2003;Umbreen and Saadat, 2015). ...
Chapter
Several crosscountry studies have found that corruption slows growth, but these findings are not universally robust. Therefore, the questions to be addressed are to what extent corruption can be tolerated and at what threshold it has a detrimental effect on an economy. This article investigates the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear. In this article, a panel data analysis has been used to examine 65 countries over the 1987 to 2021 period. Our findings are that corruption can have a positive effect on growth. The results indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth.
... Empirical literature in the eld has consistently reported a negative correlation between economic growth and corruption. These studies have shown that developed countries are known by low corruption levels and a relatively high growth rate (Cooper & al, 2006), and by contrast most developing countries are known by high poverty and corruption levels (Chetwynd & al, 2003;Umbreen and Saadat, 2015). ...
Preprint
Full-text available
Several cross-country studies have found that corruption slows growth, but these findings are not universally robust. Therefore, the questions to be addressed are to what extent corruption can be tolerated and at what threshold it has a detrimental effect on an economy. This article investigates the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear. In this article, a panel data analysis has been used to examine 65 countries over the 1987 to 2021 period. Our findings are that corruption can have a positive effect on growth. The results indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth. JEL: B23, C51, D73, O47.
... Empirical literature in the eld has consistently reported a negative correlation between economic growth and corruption. These studies have shown that developed countries are known by low corruption levels and a relatively high growth rate (Cooper & al, 2006), and by contrast most developing countries are known by high poverty and corruption levels (Chetwynd & al, 2003;Umbreen and Saadat, 2015). ...
Preprint
Full-text available
Several cross-country studies have found that corruption slows growth, but these findings are not universally robust. Therefore, the questions to be addressed are to what extent corruption can be tolerated and at what threshold it has a detrimental effect on an economy. This article investigates the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear. In this article, a panel data analysis has been used to examine 65 countries over the 1987 to 2021 period. Our findings are that corruption can have a positive effect on growth. The results indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth. JEL: B23, C51, D73, O47.
... Various studies have focused on the link between corruption and economic growth by using different indices and rates published by Transparency International, the Government Quality Institute and the World Bank. These studies have shown that developed countries are known by low corruption levels and a relatively high growth rate (Cooper Drury et al., 2006), and by contrast, most developing countries are known by high poverty and corruption levels (Chetwynd et al., 2003;Umbreen and Saadat, 2015). ...
Preprint
With reference to the grease-the-wheels hypothesis, the impact of corruption on growth seems ambiguous. Therefore, the questions to be addressed are to what extent corruption can be tolerated and at what threshold it has a detrimental effect on an economy. In this article, we examine the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear and by assessing the veracity of the assumption that corruption is always detrimental to economic growth. In this article, a panel data analysis has been used to examine 88 countries over the 1984 to 2011 period. The findings indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth.
Article
Corruption in the public sector erodes tax compliance and leads to higher tax evasion. Moreover, corrupt public officials abuse their public power to extort bribes from the private agents. In both types of interaction with the public sector, the private agents are bound to face uncertainty with respect to their disposable incomes. To analyse effects of this uncertainty, a stochastic dynamic growth model with the public sector is examined. It is shown that deterministic excessive red tape and corruption deteriorate the growth potential through income redistribution and public sector inefficiencies. Most importantly, it is demonstrated that the increase in corruption via higher uncertainty exerts adverse effects on capital accumulation, thus leading to lower growth rates.
Corruption and Poverty
  • M L Narasaiah
Narasaiah, M.L. (2005) Corruption and Poverty, Discovery Publication House, New Delhi.
Seize the state, seize the day, corruption and Influence in transition, World Bank Policy Research Working Paper No. 2444, World Bank
  • . S Hellmanj
  • Jones
  • Geriant
  • D Kaufmann
HellmanJ.S. Jones, Geriant and Kaufmann, D. (2000). Seize the state, seize the day, corruption and Influence in transition, World Bank Policy Research Working Paper No. 2444, World Bank. Washington D.C.
Corruption: a study in political economy Corruption and Government: Causes, Consequences, andReform, Cambridge press
  • S Rose-Ackerman
Rose-Ackerman, S. (1978) Corruption: a study in political economy, Academic Press, New York Rose-Ackerman, S, (1999) Corruption and Government: Causes, Consequences, andReform, Cambridge press, UK Kitgaard, R, (1988), Controlling Corruption (Berkeley: University of California Press), 75.
Umbreen Javaid, Director, Center for South Asian Studies and Chairperson
  • Dr
Dr. Umbreen Javaid, Director, Center for South Asian Studies and Chairperson, Department of Political Science, University of the Punjab, Lahore.
Corruption: a study in political economy
  • M L Narasaiah
Narasaiah, M.L. (2005) Corruption and Poverty, Discovery Publication House, New Delhi. Rose-Ackerman, S. (1978) Corruption: a study in political economy, Academic Press, New York Rose-Ackerman, S, (1999) Corruption and Government: Causes, Consequences, andReform, Cambridge press, UK