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Critical Analysis of Reading 3.4 from Lecture support notes.

Corruption: Its Nature, Causes and Effects; Suggestions on the way forward.

After analysing the article based on corruption its nature, causes and effects and
suggestions for overcoming from corruption I can summarised that the author conducted
some research on theory related to corruption and the books and journals of different
authors on the subject related to corruption to formulate a supportive reason for his ideas.
As author has structured corruption in different sub parts that is nature, its measures, cause
and effects and suggestion for making forward i am discussing all of them here one by one.

Nature of corruption

In this part of the journal the author has put some of the key ideas on defining the corruption
and its area of occurrence with supportive examples .It is defined as a mistreat of communal
rule for personal growth. The misuse of public power can take place when the self looking
for manners of politicians and bureaucrats commit a corruption by changing prescribed rules
or traditional procedures. Corruption is more common in the areas where public interactions,
capital projects with the large amounts of resources invested and some private institutions.
As Steiglitz argues the privatisation programme in Russia set the preconditions for decline
instead of setting the pre condition for growth in the time of Soviet Union collapse.

Measuring corruption

An obscure nature of corruption makes difficult to analyse as theoretically with some degree
of predictions in fact there is the corruption perception index (CPI),programmed by
Transparency international. The index developed is a measure of level of corruption
calculated on the basis of surveys carried out of in knowledgeable people in country .The
survey is the only method to predict the actual level of corruption also some stastical
analysis are carried to get CPI.

Implications of corruption

The society of country is greatly affected by corruption as goods and services happen to
more expensive due to incorporated corruption at different stages from the production to the
use of goods and services. Also the growth investment ratio of country is decline as if the
corruption in the ruling government occur then it accumulate long term public debt so
investors are not willing to invest in this situation. The decent minded people affected by
corruption migrate to other country for better quality and standards of living.
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Causes of corruption

The author has mentioned the main cause of corruption is poverty based on CPI 2005 as 19
poorest countries are failed to score not more than 4 on CPI 2005.Also corruption may exist
in country where there is weak or nonexistent of democratic institutions.

Combating corruption

Corruption is likely to be prevented with the help of four basic principles. They are arm length
principle, citizens’ participation and involvement in public decision making, a transparent
decision making and limiting the use of discretion. The decisions are based on merit and fact
data. A free and independent media is the best tool to fight against corruption with the help
of transperant decision making.Discretion also tends to produce inconsistency and lack of
uniformity in decision. Since last 10 years there are many organization and countries active
to overcome the corruption in their own country or in other poor countries where the scale of
corruption is not satisfactory. The World Bank and supreme audit institution have also tried
to improve the level of corruption in the country.

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