TOPIC: Globalisation » Economy » Grey Area » Corruption

Definition

Broadly defined, corruption is the misuse of public office for private gain. Corruption is a multifaceted phenomenon that takes many shapes and sizes, and in the same time is hidden. The forms of corruption vary in terms of who are the actors, initiators and recipients, how it is done and to what extent it is practiced.

In order to address the issues of subjectivity and ambiguity in the concept of corruption, Heidenheimer distinguished between black, white and gray corruption, in drawing this distinctions he focused separately on the perceptions of elites and ordinary citizens on corruption. Black acts of corruption were perceived by both parties as fundamentally harming the society, white acts were viewed by both to have some justification and to be of benefit in a way for society, and gray acts were those about both groups had different views. Consequently the conception of corruption is largely dependent on perception, rather than clear-cut definitions.


Corruption's Dent

At a broader level, corruption can make a significant dent in a developing country’s economy. The World Bank has estimated that corruption can shave a full percentage point from a country’s GDP growth in a given year, a difference that can amount to tens of billions of dollars for a nation like India.


Facts and Figures

The facts and figures used under this chapter are from Transparency’s International (TI) 2009 Barometer where 73,132 people were interviewed in 69 countries and territories between October 2008 and February 2009.
a. The general public is critical of the private sector’s role in their countries’ policy making processes. More than half of respondents held the view that bribery is often used to shape policies and regulations in companies’ favour. 
b. 31 per cent perceived them as effective, compared to the 56 per cent that viewed government anti-corruption measures to be ineffective.