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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).
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.
Corruption is an endemic issue in the middles east both in the private, non-governmental and national government authorities. The financial corruption propagated by the officials in the country led to the loss of immense amounts of national aid sent to the countries. For instance, the financial aid sent from the western nations to Gaza strip of over 2 billion euros was lost to corruption. The loss of the aid involved an intricate web of the government authorities and the aid organizations that operated in the war torn area (Looney 1). Corruption assumes numerous forms such as the high level of bribes in the country coupled with the increased misuse of the aid. This realization led to the development of the stance that the donors have to focus more on the use of the aid in the region or else the aid directed to the affected people will be reduced. Sadly, the loss of the 2 billion euros was not the first case. The Palestinian authority had been accused of numerous cases of corruption.
Corruption is so entrenched in the security authorities such that the regime change from the Arafat era to Abbas era has not had any effect on the government. The issue is so deeply rooted in the country such that the government top echelons are full of people that are poised on the creation of wealth using the illegal means. Still focusing on the case of Palestine, one of the top advisors of Yasser Arafat had managed to build an investment portfolio worth over 2 billion euros. He even had the brazen audacity to refuse the imploration by the president to return the finances to the government. He proceeded to delink himself with the president for the suggestion.
The finances that the PA had come from the national aid distributed to his country. The advisor distributed some of the finances that he had attained to various people and communities. Importantly, he distrusted the finances to the security mechanisms such that he would be assured of security (Looney 1). The accusations of the PA using the European aid money for personal purpose prompted the donors to send an anticorruption commission to the country. Another investigation by French authorities linked the president’s wife to the scandal after unknown sources disclosed the information. Al-Rai, the advisor, was also accused of transferring the money to the foreign banks.
Investigations into the misuse of the financial aid also led to another realization of the losses that the government incurred. The investigation revealed that the government lost over $700 million, 300 of which occurred in one instance. The justification that the authorities gave for embezzling the money was that the wife of Arafat was entitled to a pension of 300 million since she used to work in the president’s office before being married to him. The reasoning was not justified since the right to the pension was relinquished after she married the president. The corruption levels in the government start this indicator at the top levels. They affect all the sectors of the economy of the nation.
Corruption in the government started with the government collecting the aid and pouring it in the budget of the government while in the real sense the finances that the government was consolidating were meant for the people and not the government. The authority divided the collected money among themselves (Looney 1). The money that was meant for the reconstruction of the country after the war often turned up in the secretive accounts in Switzerland and Bermuda’s. The officials who were predominantly drawn from Fatah often embezzled the money and used it for their personal use. The Fatah leaders used the money in partnership with the Israeli companies.
The cycle of grand corruption involved the senor leaders at the Palestinian authority and Fatah. The scandals involving the top officials in the government have pointed out that the issue of corruption is not isolated. Instead, a malignant tumor affects the nation. the officials close to the prime minister and other top officials indicate that the corruption starts at the top levels of the government and are passed down to the lower levels. The security chiefs are also accused of providing the corrupt officials with the immunity to conduct their activities.
Grand corruption in the country also assumed a different form of smuggling. It is a norm for the officials in the Middle East government to use their positions of power to smuggle goods into the country. Smuggling could be in different forms with the main approach to smuggling being selling government properties to other nations. The government ends up buying the pilfered goods repeatedly since the officials have identified the smuggling of government pore cured goods as another safe approach to corruption (Looney 1). Smuggling also involves the use of the power that they have to control the flow of some commodities. Major companies linked to top officials are often implicated for the transfer of goods from other markets. The smuggled commodities could be legal or otherwise.
Palestine is not the only country affected by grand corruption. The case of the country was used extensively due to the high web of corruption that was well investigated by the authorities. Most of the countries in the Middle East are affected by corruption that leaves leeway for the creation of impunity and wastage of government resources. The government have failed in coming up with the right approach of dealing with corruption. Majority of the countries deal with corruption in the defense sector and oil production.
All the countries assessed indicated a high propensity to corruption. Syria and Yemen were implicated to have the highest levels of defense corruption with the majority of the defense deals being taunted as vehicles for the top corruption. This means that the countries are not keen on the accountability to the people more so in the defense contracts since most of them are sealed due to their sensitive nature (Looney 1). the two countries hardly foster accountability in the defense and security establishments. The region has other problems that increase the chances of corruption in the defense departments. One of the major causes of the security threats comes from the excessive secrecy that the government propels. It is understandable for the governments all over the world to avoid disclosing any information relating to the procurement of the defense materials.
However, the common practice involves a rough estimate of the amount that the government intends to use in defense for a given period. In the Middle East, there is no commitment by the government to the people for such information. the internal auditing processes in the countries is also flawed with the majority of the staff in the defense installations free to make decisions on the purchase of the weapons and development of some infrastructure. Poor internal control processes indicate that the government has poor oversight over the defense projects that it commits in the region (Looney 1). The final issue that propagates corruption in the mentioned countries is the relegation of the public interest to a second hand role. The public is rarely involved in the development of the defense budget. As a result, the majority of the people are less informed about what the government is doing with their money. The people are content to go with the explanations of the government in budget since there is no direct manner in which they can access information from the government. They have to find the information on their own from other sources.
Most of the countries in the region do not have the required legislative committees to look into the spending of the government on defense. In the single country where the legislative committee is present, there are few decisions that the committee makes on the issue. Whenever the committee makes a suggestion on the defense budget, there is high chance that the suggestion will be shot down since most of the committees in the parliament are ceremonious and superficial (Shaibi n. pag). The decision networks are based on the close ties among the families and businesses. The restriction on public discourse also deal the public another blow as far as their involvement in the defense budget is concerned. In fact, the public is gaged from being involved in numerous issues. The countries in the region do not have a safe whistle blowing system that can be used by the concerned parties to judge the government decisions in the defense sector. For instance, in Syria, the move to initiate public debate on the government procurement practices were met with force and imprisonment of those involved.
Another factor that fosters the public corruption is the increased levels of conflict in the region. Most of the people in the region are involved in some conflict of sorts. In some cases, the conflict levels are so sigh such that they affect the country. Other countries are in the process of recovering from the previous conflicts that they may have encountered. The conflicting status of the countries increases the risk of corruption since the instability in the region is a precursor to corruption (Shaibi n. pag). Conflict undermines the strength of the checks and balances instilled by the government. In most of the countries, the defense budget is not available to the members of the public. In the cases when the budget is in the public domain, there are hindrances to the collection of detailed information about the allocations.
The vagueness of the information in the public domain leads to the creation of leeway for the corruption of the funds dedicated to the sector. Corruption in the defense forces serves to exacerbate the turmoil levels witnessed by the people. It also increases the chances of failure in the war. Therefore, the troops and the people that they are charged to protect are harmed by the vice of corruption. However, some of the countries in the region are indicating change in terms of the corruption in the defense departments. For instance, Lebanon has established a well-known and used payment system for the officers (Shaibi n. pag). The information on its spending on war is availed to the members of the public. Transparency in the defense spending is one of the moves that have led to the government’s credibility. The rest of the countries in the region are posting improvements as far as the defense spending is concerned. Middle East region performed poorly in the assessment of the government defense anti-corruption index. The countries were in the poor region since they were accustomed to high secrecy.
Findings of various research indicate that the majority of the corruption cases in the gain are in the defense sector. The pervasiveness of the corruption in the defense department comes from the increased secrecy levels that the government propagates among its people. The secrecy increases the spending risk that the finds are exposed to since some of the released funds are not used for the intended purpose (Shaibi n. pag). Public discourse is limited in the matters pertaining to defense since there are few countries that have legislative commits on defense. The powers of the commits are also limited since the information on the defense spending is usually on a need to know basis.
In conclusion, the public authorities in the region propagate corruption. The police force in the region is used to propagate some corruption activities such as embezzlement of funds. The police are usually involved in the facilitating process. This case was evident in Palestine. Defense budgets are used as vehicles for corruption due to their secretive nature. Lack of public discourse creates more possibility of corruption in this department.
Looney, Robert. 'Profiles Of Corruption In The Middle East'. Journal of South Asian and Middle Eastern Studies 28.4 (2005): 1. Print.
Shaibi, Azmi. 'Elements Of Corruption In The Middle East And North Africa, The Palestinian Case'. (1999): n. pag. Print.
While the police have the role of keeping law and order, they are occasionally involved in acts of corruption or misconduct. Police misconduct or corruption may involve procedural, criminal or civil violations. New York city police Department Corruption Prevention Policies are a set of standards set to prevent misconduct in the police department (Edward, 2006). While policies have been affected in several cases of police misconduct, there are particular instances where the policies have been substantially ineffective.
For instance, in 1999, three police officers were convicted with the crime of beating and sodomizing an immigrant. All of them pleaded guilty with each receiving a jail term of not less than 30 years. However, their cases were overturned shortening the term to five years. While this case was among the most highly paid settlement against police brutality, the officers never served their term. This clearly shows that there are flaws in NYPD Corruption Prevention Policies.
CALEA is responsible for carrying out reviews or assessment for law enforcement agencies. Accreditation with the CALEA is open to all agencies. The program checks on the overall performance of law enforcement agencies (Thompson, 2015). Since the involvement of the police in crime affects the performance of the police department, the NYPD Corruption Prevention Policies are subject to accreditation. Through the assessments and a fact based reports, the implementation of the NYPD Corruption Prevention Policies becomes more effective.
There is a notion that the police department cannot be fully accountable for increasing crime rate since social, economic and political factors also contribute to high crime rates (Edward, 2006). However, this is not true since there are several other factors that contribute to increased crime rate. CALEA considers all the attributes that may affect the performance of an agency. As a result, the performance of an agency is not calculated from mere statistics but is a comprehensive assessment of all the factors (CALEA, 2010). Clearly, the NYPD Corruption Prevention Policies can be accredited under the CALEA standards.
In addition, CALEA is concerned with the accountability of the leaders and other players in the law enforcement agencies. The program outlines a number of standards that define performance, authority and responsibility of each member of the law enforcement agency. According to the program, accountability is the central determinant of performance of any law enforcement agency (CALEA, 2010).
CALEA. (2010). Law enforcement accreditation.
Edward,. R.M. (2006). Measuring the performance of law enforcement agencies.
Thompson,. C.K. (2015). Institute of public safety.
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