Theory of corruption






The University of Latvia

Faculty of Economics and Management





Essay


Theory of corruption







Extramural courses (on Sundays)
1st year student 3rd group Sv1

Inga Silmale

Ekon 000079






Academic Year 2000-01





Introduction
Term corrumpire in Roman law used to define verbs such as to break, falsify, bribe, tear, and it used to denote illegal activity directed against/towards something or someone, for example against/towards a judge. This term is made of two Latin words, correi which means parties to an agreement, and rumpere, which means to tear, break, cancel, etc. As a result a term emerged that used to describe the activity of two or more parties whose aim was to create an impediment to normal functioning of legal process or of process of public management.

The reasons corruption appears
Corruption = monopoly + discretion – accountability. This means that if a public official enjoys monopoly in relation to some service requested by counteragent, and if this official has a significant degree of discretion in applying or determining regulations and if this official also enjoys lack of accountability – in these circumstances the corrupt practices are most likely to take place.

Variations in the level of corruption

Most students of corruption agree that corruption is a phenomenon that occurs worldwide and that it can be observed both in developed and developing countries. In the countries with economies in transition, such as Latvia, corruption can attain particularly high levels because virtually all the conditions for its appearance are present.

Consequences of corruption
In the current discussion on the negative and positive aspects of corruption (yes, there ARE positive aspects of corruption) there emerged a new point of view backed by many authors – the corruption certainly can foster economic development at some point of economic transition, but remaining at that particular point can result in disastrous consequences for society.


Corruption and morale
Corruption is traditionally regarded as an example of amoral behavior, as a consequence of which the usefulness of contact with an amoral (corrupt) individual is being re-appraised because of fear of possible punishment and also because of intrinsic antipathy of humankind to amorality.

Fighting corruption

The interesting fact is that in order to maximize public good, the total elimination of corruption is not necessary. In fact it is sufficient to reach some optimal level because the costs of total elimination of corruption may well exceed the benefits. In order to reach that optimal level several schemes of restraint are being offered.
The issues mentioned above are being studied within the framework of various models of corruption; however each of these issues is being approached from a different point of view. There are roughly three directions of studies: 1) study of examples of external corruption, i.e. when the bribe comes from outside an organization; 2) study of examples of internal corruption, i.e. when corrupt practices take place between the members of an organization; 3) study of other topics such as non-singularity of balanced corruption conditions, cycles of its appearance, etc. Apart from these three directions there are other works that focus on the impact and/or influence of corruption in concrete situations.
Usually corruption is a symptom of deep problems in society, which is confirmed by empirical data gathered by students of this phenomenon. This data shows the existence of close link between corruption and economic downturn, fall in investment activity, lack of credible warrants in property and contractual rights, low level of civic activity and weakness of judicial institutions and legal process in general, deep ethnic divisions and conflicts. This also means that corruption is not only an economic phenomenon and this is why it should become subject for social, psychological, and political analysis.

Conclusion
In many countries, aside from lack of public goodwill and civic activity, there is also lack of qualified professionals and equipment necessary to fight corruption. Moreover, in some countries, the laws that were designed to protect people became cozy tools used by "corrupt community". This includes the immunity law for public officials and banking laws that forbid disclosure of information about account holder. In sum, the level of corruption is determined on the one hand by the extent of state's presence in the economy, and the maturity of the society and deepness and thoroughness of societal control over activities of the state on the other.
In Latvian anti-corruption law this term is defined as illegal obtainment of property or other goods and benefits by persons in public office or of similar status, by way of use of their status or opportunities related to this status. This also includes bribery in form of goods and benefits illegally offered to and/or obtained by such persons.
In the last five years, the Eastern and Western Europe underwent through sharp economic changes. While privatization brought about competition, at the same time we can see that fundamental business and ethical principles are still lacking. The studies have shown that in customs, public management, police, banking sector, and in private enterprises the corruption is regarded as a normal way of life.
























 

 

 

 

 

 

 

Bibliography

1.      www.tvnet.lv
2.      www.latnet.lv
3.      voika@nip.eunet.lv
4.      www.law.lv





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