This study underscores the critical importance of prioritizing efforts to combat corruption within the development agenda. Focusing on least-developed nations characterized by extensive regulation and central planning, the chapter delves into the roots and ramifications of corruption. In such contexts, institutional deficiencies within legislative and judicial systems, coupled with a dearth of accountability, transparency, and consistency, create fertile ground for the proliferation of rent-seeking behavior. Beyond catalyzing the growth of shadow economies and incurring substantial societal costs, corruption exerts detrimental effects on investment, consumer behavior, income distribution, government finances, and economic reforms. Moreover, the study sheds light on the global pervasiveness of bribery and its underlying supply-side dynamics, while offering insights into strategies aimed at combating and preempting corrupt practices.
TopIntroduction
In contemporary times, corruption has emerged as a pervasive global phenomenon. Its prevalence is attributable to several factors. Firstly, it is widely acknowledged that corruption exists across various sectors, including the public and commercial domains, not-for-profit organizations, and philanthropic institutions, spanning both developed and developing nations. Secondly, allegations and instances of corruption have assumed a central role in politics, exerting substantial influence. Such accusations have led to the collapse of governments, the downfall of prominent public figures' careers, and the tarnishing of reputations for esteemed organizations and businesses (Campos et al., 2021). Instances of unethical behavior, particularly among individuals in positions of power, garner significant attention from the media, which capitalizes on their sensational nature. The public's fascination with witnessing influential figures embroiled in scandal, coupled with the media's preoccupation with corruption as a lucrative commodity, as well as the growing trend of exploiting corruption to undermine political adversaries, have collectively propelled scandalous and corrupt behavior—often stemming from human fallibility—into the forefront of international discourse. Thirdly, and of primary concern in this paper, corruption represents a formidable impediment to a nation's endeavors to modernize and achieve economic advancement (Uberti, 2022).
Many increasingly believe that corruption should be given top priority in a nation's development plan. Developing nations have expressed concern about the growing understanding that corruption may seriously impede progress. Scholarly studies on corruption have significantly increased as a result of growing public attention and concern. Undoubtedly, there are still many unanswered questions and significant gaps in our current understanding of the subject. However, the existing body of empirical and theoretical studies has provided new insights into the issue. We now know more about the root causes of corruption, its effects, and the strategies and concepts behind potential countermeasures. Simultaneously, a more comprehensive understanding has been acquired of the causes behind the persistence of corruption in several nations and its challenging nature, despite its negative perception worldwide (Ibodullaevich & Kizi, 2021).
Arguments on corruption across different sectors or countries often revolve around the widespread negative impacts on governance, economic development, and social welfare. In various sectors, corruption undermines fair competition and impedes economic growth, diverting resources meant for public projects into the pockets of a few. Additionally, corruption erodes trust in public institutions, leading to a breakdown of the rule of law. Arguments also emphasize the cross-country disparities, where corruption manifests differently in various cultural and political contexts, necessitating tailored strategies for effective mitigation. Moreover, proponents of anti-corruption efforts highlight the interconnectedness of corruption across sectors and nations, emphasizing the need for a collaborative, international approach to tackle this pervasive issue and foster sustainable development. The examples chosen to illustrate corruption may lack significance, as they fail to capture the gravity and widespread impact of the issue. For a more impactful portrayal, one could consider high-profile scandals like the 1Malaysia Development Berhad (1MDB) case or the Petrobras scandal, showcasing how corruption can infiltrate the highest echelons of government and business, causing extensive harm. Additionally, highlighting corruption's profound influence on economic development, exemplified by cases in certain African nations where embezzlement of public funds impedes critical infrastructure projects and essential services, would underscore the issue's severity. To further emphasize the global scale, using Transparency International's Corruption Perceptions Index would provide a comprehensive view of corruption's pervasive nature and its effects on countries' rankings and foreign investments. By incorporating these more significant examples, the research gains a more profound and relatable perspective on corruption and its far-reaching consequences.