Corruption a Root Problem Free Essay Samples & Outline

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Sample Essay On Corruption a Root Problem

Corruption can be described as complex phenomenon, it roots often lie deep in bureaucratic and political institutions and its effects on development and capitalism often varies with the specific country conditions (Kumar, 2012). It is important to understand that while costs may at time vary and systematic corruption might at times exist in a strong economic performance, experience suggest that corruption is extremely bad for capitalism.

It often leads to intervention of the government in areas where they not need to intervene and this undermines their ability to enact as well as implement policies in the areas where government intervention is needed (Matsumoto, 2008). It is of the essence to understand that the term corruption often covers a broad range of human actions. In order to fully understand the effect of corruption on a capital system, it is important to understand the different types of corruption that exists and how they affect capitalism individualism.

The first type of is corruption is bribery. Bribes can be said to be one of the main tools of corruption, they can often be used by private parties in order to ‘buy’ many things that are provided by local government (Kumar, 2012). It is important to note that there are sometimes grand corruption which involves huge bribes which are sometimes international business transaction. In most cases, these international business transactions often involve politicians as well as bureaucrats. Bribes might also involve the exchange of petty cash and gifts amongst different persons in order to do something that is not legal (Borner, 2004).

The second type of corruption is theft. The theft of state or an organization assets is also corruption. An extreme form in the government is the spontaneous privatization of state assets by different enterprise managers and other officials. At the other end lies petty corruption such as the stealing of items such as vehicles, fuel and office equipment. Political corruption on the other hand takes place at the political level (Kumar, 2012). It might involve election laws, conflict of interest rules for persons in government and campaign finance regulation. In some cases, state institutions infiltrated by the corrupt and criminal elements and are turned into instruments of individual enrichment (Matsumoto, 2008).

Read more about effects of corruption on finance

It is important to understand that at most at times the causes of corruption are contextual and are deeply rooted in a country policies, tradition, politics, and social history. It has however, been noted that corruption tends to flourish when institutions are weak and the government policies that are put in place are dysfunctional.

Corruption leads to state funds and company funds being embezzled and consequently money being used for the wrong reasons (Borner, 2004). Developments in the government cannot go on because of corruption and the increase in corruption means that most investors often avoid that country. Further, most multinational companies that wanted to invest in the country also look at the corruption levels of the country and decide whether they want to invest in the country or not.

This is because corruption increases operational costs and most at times people have to give bribes to get essential services that they would have otherwise gotten without the need for corruption (Borner, 2004). Further, most Multinational companies do not achieve the required profit as companies have to spend a certain amount of money to pay bribes to officials. This makes the market and business scene very unfavorable and it might lead to the collapse of several promising businesses.


Borner K., (1994), Political Credibility and Economic Development, New York: St. Martin's Press, ; P. Mauro, "Corruption and Growth," Quarterly Journal of Economics.
Kumar, C. R. (2011). Corruption and human rights in India: Comparative perspectives on transparency and good governance. New Delhi: Oxford University Press.