Corruption Consequences of Corruption

Characteristics of Corruption 1. Consequences on politics, administration, and

institutions
1. Corruptions always involves more than one 2. Consequences on economy
person. 3. Environmental and social effects
2. On the whole, it involves secrecy. 4. Effects on humanitarian aid
3. Entails mutual obligations and benefit. 5. Effects on health
4. Corrupt practices are usually given legal 6. Effects on education
justification. 7. Other areas: public safety, trade unions, police
5. It involves deception. corruption, etc.
6. In any form, it is betrayal of the public trust.
7. It rests on a contradictory dual function. Types of Corruption
8. It violates the duty and responsibility within the
civic order. 1. Bribery – refers to the offering, giving, soliciting
or receiving of any item of value as a means of
Corruptions: in the Philippine Settings influencing the actions of an individual holding
public or legal duty.
1. Corruption in the Philippines is endemic and Two Kinds of Bribery
metastatic. 1.1. Active Bribery – the promising, offering or
2. Income side: use of government power to giving by any person, directly or indirectly
extort money. 1.2. Passive Bribery – the request or receipt by
3. Expenditure side: malversation of public funds. (any public officials), directly or indirectly
Some Dynamics/Pyramids: 2. Trading in influence/influence peddling - refers
to a person selling his/her influence over the
1. It encourages corrupt high-ranking officials to decision-making process to benefit a third party
remain corrupt. (person or institution).
2. At the lower level, it frustrates younger officials. 3. Patronage - refers to favoring supporters, for
3. The problem is so entrenched that it creates a example with government employment.
vicious cycle with various departments. 4. Nepotism and cronyism - favoring relatives
Political Corruption – is the use of power by (nepotism) or personal friends (cronyism) of an
government officials or their network contacts to official is a form of illegitimate private gain.
illegitimate power gain. 5. Gombeenism and parochialism - Gombeenism
refers to an individual who is dishonest and
Multi-Dimensional Approach corrupt for the purpose of personal gain, often
monetary, while parochialism, which is also
1. Decline of virtue among political officials and
known as parish pump politics, relates to
the citizenry.
placing local or vanity projects ahead of the
2. Corruption as deviant actions.
national interest.
3. Corruption is always an exchange between two
6. Electoral fraud - is illegal interference with the
or more person/parties.
process of an election.
4. Corruption has different level of societal
7. Embezzlement – is a term commonly used for a
perception.
type of financial crime, usually involving theft or
5. Shadow Politics - this is part of the informal
money from a business or employer.
political process that goes beyond legitimate
8. Kickbacks - is an official's share of
informal political agreements to behavior that is
misappropriated funds allocated from his or her
purposefully concealed.
organization to an organization involved in
Three (3) Different Level of Societal Perception of corrupt bidding.
Corruption 9. Unholy alliance - is a coalition among seemingly
antagonistic groups for ad hoc or hidden gain.
1. White Corruption - this level of corruption is 10. Involvement in organized crime – Organize
mostly viewed with tolerance and may even be crime is a category of transnational, national or
lawful and legitimate; typically based on family local group of centralized enterprises run to
ties and patron-client systems. engage in illegal activity.
2. Grey Corruption - is considered reprehensible
according to a society's moral norms, but the
persons involved are still mostly lacking any
sense of doing something wrong; often
occurring in constitutional states or state
transitioning to a more democratic society.
3. Black Corruption - is so severe that it violates a
society's norms and laws.
Factors that Promotes Corruption
1. Direct Factors 2. Indirect Factors
a. Regulations and Authorization a. Quality of bureaucracy
b. Taxation b. Level of public sector wages
i. The laws are difficult to c. Penalty systems
understand and can be d. Institutional controls
interpreted differently. e. Transparency of rules, laws, and
ii. The payment of taxes requires processes
frequent controls between f. Examples by the leadership
taxpayers and tax
administrator. USUFRUCT CONTRACT – the government can use the
iii. The wages of tax land after 50 years.
administrators are low.
iv. Acts of corruption on the part of
the tax administrations is
ignored.
v. The administrative procedures
lack transparency and are not
closely monitored within the tax
or customs administrations.
vi. Tax administrators have
discretion over important
decisions.
vii. When the controls from the
state on the agents changed
with carrying out its functions
are weak.
c. Spending Decisions
i. Investment projects have lent
themselves to frequent acts of
high-level corruption.
ii. Procurement spending
iii. Extra budgeting accounts
d. Provisions for goods and services at
below market price
i. Foreign exchange
ii. Credit
iii. Electricity
iv. Water
v. Public housing
vi. Some rational goods
vii. Access to educational and
health facilities
viii. Access to public land
e. Other discretionary decisions
i. Provisions of tax incentives
against income taxes, value
added taxes and foreign trade
taxes.
ii. Decisions as to particular use of
private land.
iii. Decisions as to use of
government-owned land
iv. Decisions that authorize major
foreign investments.
v. Decisions related to the sale of
public sector assets.
vi. Decisions on the privatization of
state-owned enterprises.
vii. Decisions providing monopoly
power to particular export,
import or domestic activities.
f. Financing of parties