How Corruption Affects the Economy

Corruption in simple words is the alteration of things or property from their intended purpose to serve a private purpose with disregard to morality or law of a country. There are a variety of reasons which cause corruption such as greed, power misuse, lack of proper policies and character. Unfortunately, this vice is deeply-rooted in many countries; its implications are conspicuously visible as it results to slowed economic development. Some of the adverse effects of corruption to the economy of a nation include:

Grants, taxes or money that is intended for development and government projects such as building of schools, hospitals and infrastructure ends up in the pockets of a few people. Such an action slows down the rate at which the economy of the said country grows. It is also unfair to the citizens who work-hard at their work places only for their hard-earned money to be taken by a few people who did nothing for it.

Additionally, bribery results to an increase in the cost of products as producers are forced to bribe the officials in order for them to operate in the country. Consequently, they hike the prices of the goods to compensate for the wrongful payment they made. The consumer bears it and thus the money which they would have used as savings for investment and to pay for their children fees is embezzled by a few greedy individuals.

Corruption results in building of low-quality infrastructure such as roads, bridges and public institutions. Poorly built roads affect the economy adversely since they hamper convenience and effective delivery of goods which slows down the rate of economic growth. Additionally, corruption results to wrongful employment policies which results to appointments of people in positions that they are not qualified to handle. Thus, those with the skills and capacity for the tasks miss the opportunity. Such practices hurt the economy by resulting in a rise in unemployment or under-performance at work. It is, therefore, the responsibility of the stakeholders, government and the people to ensure that they fight the vice of corruption with all the means available.