CONSEQUENCES OF CORRUPTION - CULTURE VOCABULARY - 2025

The consequences of corruption are often quite devastating for the various sectors of a country. In addition to the economic damage it causes, corruption is often accompanied by social damage that is difficult to repair as a consequence of the defense mechanisms that the corrupt must use to protect themselves.

Corruption can exist in various areas of society, although it is usually a term closely related to the economy. The corrupt take advantage of their position to implement illicit methods for their own benefit. Corruption includes bribery, extortion, offering illicit benefits and carrying out illegal activities.

Economic consequences

Decrease in investments

Corrupt countries are generally very unattractive for what is called total investment. The total investment includes both foreign investors and local investors. When a nation begins to have high rates of corruption, the number of people who use their money in the country decreases significantly.

The reason why private sector investment declines is usually what pushes each investor to bribe the various authorities and members of the government to keep their business going. This detracts from your profitability, which scares off any cash flow.

Damage to the international market

Corruption in the international market is usually quite common, as governments establish a series of prohibitions (such as the importation of drugs and other illicit substances) that are imposed by official agents. The number of agents is usually quite large and it is impossible to control their behavior.

This leads to the same agents putting obstacles when someone tries to import some good, and begins to blackmail businessmen so that they can export their products. The recurrence of this fact tends to scare away those who want to get involved in the international economy of a country.

Income inequality

Areas or countries with high rates of corruption tend to have quite unequal incomes in different social strata. In large part, this is because lower-class people are not typically paid any kind of bribe, creating a large income gap between those who blackmail and those who do not.

In addition, bribes make the goods necessary to survive are directed to those people willing to pay more (illicitly) for them. This further deteriorates the lowest class of a country.

Growth and development slowdown

As a direct consequence of the lack of investment, new industries and companies lose the willingness to expand into corrupt areas. This slows down or even stops a region's growth process altogether.

The lack of functional infrastructure as a consequence of corruption also affects the state of development of a society.

Political consequences

Decrease in government investment

The government authorities that practice most corrupt activities always seek to maximize their level of income. This is usually achieved through the diversion of funds destined for public investment and through bribes to regional companies and businesses.

By not allowing the income from public spending to reach the necessary regions of the country, its infrastructure, health and education levels lose a high degree of quality. In countries with a low rate of corruption, both public and private education tend to have a similar quality.

However, the amount of money that is reflected in public spending in a corrupt country is usually high, as a large part of this money is diverted into the pockets of the corrupt.

Loss of respect and trust

In corrupt societies, citizens lose respect and trust for the authorities and members of political parties. Trust is the most important criterion for citizens when casting their vote for a political candidate. The lack of transparency damages this trust and generates insecurity in the population.

In addition, knowing that the authorities are corrupt, you lose respect for national protection forces such as the police and the army. This generates hatred within society, which is reflected in the interactions between civilians and authorities.

Political aversion

Hard-working and honest people often despise running for political office in corrupt localities or countries.

In these societies, those in political office are frowned upon, and therefore honest people do not want to get involved in this area. This limits the corrupt to political positions, which in turn deteriorates the general level of society.

Social consequences

Deterioration of the welfare of the population

Whether in a local, regional or country-wide environment, the presence of corruption directly affects the well-being of citizens. It generates a constant feeling of concern in the population, as corruption often makes the authorities ignore the laws and act as they please.

Not knowing how the authorities or the politicians themselves are going to act creates unnecessary concern in the population, since a civilian does not know how harmed they will be due to the illegal decisions that the people in charge of the supposed security of their country or locality.

Increase in accidents

In countries with high levels of corruption it is common to pay for licenses without passing prior tests. This is particularly common in vehicle driving tests. In corrupt countries, people who have not passed any driving tests can obtain their license by paying the issuer.

This results in a large number of people without basic knowledge of traffic laws obtaining driver's licenses, which increases the number of accidents on the streets. In addition, other types of licenses can be "bought" without having their own knowledge in the related area, which decreases the general quality of this.

References

1. Corruption Around The World: Causes, Consequences, Scope and Cure; Vito Tanzi, May 1998. Taken from imf.org
2. Causes and Consequences of Corruption, Cologne Institute for Economic Research, 2017. Taken from iwkoeln.de
3. Consequences of Corruption at the Sector Level and Implications for Economic Growth and Development, OECD, 2015. Taken from oecd.org
4. The Causes and Consequences of Corruption, Omar Azfar, Young Lee, Anand Swamy, 2001. Taken from sagepub.com
5. Causes and Consequences of Corruption, Nikos Passa, (nd). Taken from amazonaws.com