corruption is, behavior which deviates from the normal duties of a public role because of private-regarding (family, close private clique), pecuniary or status gains; or violates rules against the exercise of certain types of private-regarding influence.
This includes such behavior as bribery (use of rewards to pervert the judgment of a person in a position of trust); nepotism (bestowal of patronage by reason of ascriptive relationship rather than merit); and misappropriation .Some political scientists view corruption as being a, ‘second best, or ‘grease the wheels’ solution, particularly in the inefficient, inapt, and mismanaged bureaucracies in developing countries. Huntington suggests, "..in terms of economic growth, the only thing worse than a society with a rigid, over-centralized dishonest bureaucracy is one with a rigid, over centralized honest bureaucracy."Those willing and able to pay the highest bribes are likely to be those able to use it most productively.
Some contends that introducing competition into an otherwise uncompetitive economy can be beneficial to development; “corruption brings an element of competition with its attendant pressure for efficiency to an underdeveloped economy.”
However, there is little evidence to support these arguments. In response to the argument for corruption being ‘grease’ which lubricates the ‘squeaky wheels’ of a bureaucratic and rigid administration, Corruption leads to economic inefficiency and waste, because of its effect on the allocation of funds, on production, and on consumption. Gains obtained through corruption are unlikely to be reinvested within the country but transferred to foreign bank accounts. These transfers represent a capital leakage from the domestic economy.Corruption encourages competition in bribery, rather than in quality and in the price of goods and services. It inhibits the development of a healthy marketplace and distorts economic and social development
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