Founded in , it brings together top CEOs, governments and international organizations who develop collective action on corruption, transparency and emerging-marking risks. PACI uses technology to boost transparency and accountability through its platform, Tech for Integrity. One consequence of this, according to the International Crisis Group, has been that some people have grown so disaffected that they have become drawn to Islamic extremism. The views expressed in this article are those of the author alone and not the World Economic Forum.
Addressing corruption and mainstreaming integrity in business will support a sustainable future, but requires G20 collaboration with key stakeholders. Inefficiency and unfairness in government processes can leave them open to corruption. Blockchain could help address weakspots and increase transparency. I accept. Corruption leaves many people far worse off and feeling marginalized. Corruption is also strongly influenced by the low salaries of public administration employees state officials , who are therefore trying to improve their financial position by receiving bribes, and consequently, the socio-economic situation of the government officials also affects the phenomenon of corruption.
This is demonstrated also by Allen et al. The mentioned authors find that the private sector has higher ethical values, in particular those that affect satisfaction with work, than the public sector and is therefore less unethical especially regarding thefts and corruption. Indirectly, Svenson [ 10 ] also affirms this and states that in principle, the salary level of civil servants affects the receipt of a bribe the higher it is, the smaller the chance that the person will act corruptly.
However, he continues on that a higher salary also strengthens the negotiating power of the official, which leads to higher bribes and he also states that, on the basis of existing research, it is very difficult to determine whether a higher salary causes less corruption, which means that the level of salary is not a decisive factor, but merely one of many.
The economy is unfortunately largely dependent on politics and often reflects the rule of law; various options for eliminating competition are exploited, and bribery is just one of the possible weapons in the struggle to gain a job. They are part of the game and everyone does it.
The political influence of corruption is also manifested through the proverb: examples are attractive! If the top of the politics government, parties and leading politicians is corrupt, then corruption shows at all levels, and this evil at the same time spreads among the ordinary population, as nobody trusts the institutions or the rule of law.
Johnston [ 15 ] thus points out useful thinking in terms of two types of equilibrium—the balance between the openness and the autonomy of the institutions and elites it leads and the balance between political and economic power and opportunities for cooperation.
Ideally, the institutions should be open to influences and feedback from different sources, yet at the same time sufficiently independent to effectively carry out their work. Where the openness and independence of the institutions are in balance, the officials are accessible, but not excessively exposed to private influences; if they can make authoritative decisions, while not using their power to arbitrate, the corruption is relatively low.
Lack of professional ethics and deficient laws regulating corruption as a criminal offense, and the prosecution and sanctioning of it are also an important cause for the emergence and spread of corruption.
A great influence comes also from the ineffective sanctioning of corruption, which only increases the possibility of continuing the corruptive actions of those involved, creating at the same time a strong likelihood that others will join in the corruption due to this inefficient sanctioning.
The sole lack of professional ethics is a particular issue, as the administration requires different amounts of time to develop or change its ethics and professional standards, which is well known in transition countries in some, ethics and professional standards changed overnight and approached the equivalents in the developed democracies, and in some, they remained the same as in socialism.
Therefore, due to lack of professional ethics in some countries that otherwise manage illegal corruption well, there is nevertheless a widespread form of legal corruption. Corruption also generates a lack of transparency and a lack of control by supervisory institutions. Therefore, where there is insufficient legal basis or sufficient political will to control, which enables a non-transparent functioning of both politics and the economy, corruption flourishes.
Corruption is also affected by the extensive, non-transparent or incomplete legislation, where laws can be interpreted in different ways for the benefit of the one who pays. Different countries have different attitudes to corruption. In Europe alone, we can find two extremes; from completely corruption intolerant North to the warm South, where corruption is an almost normal, socially acceptable phenomenon.
Or the difference between countries with a democratic past, which traditionally prosecute corruption, and former socialist countries, where the corruption in the state apparatus was a part of folklore tradition.
Everything is only a matter of ethics and morality; however, they can be very different in different areas and different countries. Some forms of corruption also relate to an informal form of social security, where the family or the immediate community takes care of its members. Such forms of informal social security prevail in less developed countries, where there is no legal regulation of formal social security and in the countries of Southern Europe where the influence of the broader family patriarchate 5 is still very strong, like for example in Italy, Greece, Albania, Bosnia, etc.
These countries are known for nepotism, cronyism and patronage, since the family as well as the wider community provide social security. The family or community takes care of their members, who, in return, must be loyal and in a way also repay the benefits they receive from it. The same is true of faith. While the southern, predominantly Catholic, very hierarchically organized part of Europe, encourages the cult of the family also joint and several community and several liability, the northern, mainly Protestant part, emphasizes individualism and individual responsibility which means less forms of corruption.
The corruption also prospers better in countries where Islam and Orthodoxy are the main religion. The influence of the dominant religion in the country is thus important.
The influence of majority Protestantism has been tested several times and has proven to be an important factor for the low level of corruption in a country. Today, there are many nominally Protestant countries that are de facto secular, while also many non-Protestant countries fight effectively against corruption.
Thus, the influence of Protestantism appears to emerge from its egalitarian ethos, which could indirectly function as a support to the general orientation toward ethical universalism, literacy and the promotion of individualism.
Its role is therefore important, as it at certain stages of the development explains why the first countries that were well managed were predominantly Protestant. This does not mean that other religious traditions are incompatible with good governance, but only that they have not succeeded in compiling this particular array of factors at the right moment [ 16 ].
Similarly, the research by North et al. The results of their research have shown that there is a link between religion and corruption on one hand, and respect for the rule of law on the other, but not that the link is causative.
The questions therefore arise: Why do some religions respect the rule of law more than others and control corruption? Do the characteristics of a particular religion themselves lead to the results? Are there any differences in religious doctrines, practices or cultures that lead to such results? Are there other links that are not rooted in the religious culture, but are related to religious affiliation? A study titled Perception of corruption by authors Melgar et al.
They found that those who think that there is a lot of corruption also perceive it so and are consequently more willing to pay for it as they think or expect the society to function that way. By using a wide and very heterogeneous set of data and econometrics, it has been shown that the social status and personal characteristics also play an important role in the shaping of corruption perception at the micro level.
While divorced women, unemployed persons, persons working in the private sector or the self-employed are considered to be in positive correlation with the perception of corruption corruption is perceived more and they are more willing to pay bribes , the opposite applies to married persons, full-time employees, people who frequently attend religious ceremonies and people with at least secondary education they perceive less corruption and are also unwilling to pay.
According to the classification of countries, they find that it can be proved that all African and Asian countries are in the upper half of the table, and the same applies to the former socialist countries and most of the East Asian countries. People living in these countries perceive more corruption than others. On the contrary, most European countries and some of the former English colonies show lower perceptions than the average there are also exceptions and rank in the lower half, the same as half of the richest countries.
They also added that the geographical classification of countries has been strongly correlated with the corruption perception index CPI , which shows that individual characteristics and social conditions are specific factors that influence the perception of corruption. However, they have also found that better economic results reduce the perception of corruption, while the macroeconomic instability and income inequalities have precisely the opposite effect.
A very important factor that affects corruption is also demographics. A number of studies have shown that patriarchal society is more prone to corruption. This is confirmed by several researches that actually explore to what extent are men women corrupt. Several earlier, especially econometric contributions to the debate on who is more corrupt, men or women, argued that there is a link between a higher representation of women in government and lower levels of corruption.
An influential study of countries in Europe, Africa and Asia by the World Bank [ 20 ] confirmed this and concluded that women are more reliable and less prone to corruption. The subsequent findings were later reinforced by further research.
Rivas [ 21 ] also affirms this in his research and notes that, according to the results of the survey, the conclusion could be that women are less corrupt than men and that the increase in the number of women on the labor market and in politics would help fight corruption. Lee and Guven [ 22 ] in the survey: Engaging in corruption—the influence of cultural values and the contagion effects at the micro-level also raised the question of whether men are more corrupt than women.
The findings of the research support the thesis that women are less susceptible to corruption than men, especially in cultures that require men to be ambitious, competitive and materially successful, as these factors significantly contribute to unethical behavior. This corrupt support and protection will foster the continuation of corruption by these organisations, because they have little fear of prosecution at home or in the country where the project is located.
For example, a department responsible for international development may endeavour to encourage organisations to adopt ethical policies, to have laws against corruption strengthened, and to press for prosecution of those organisations which have acted corruptly. However, the department for trade, in the same government, whose interests may be primarily concerned with business success and profitability, may be more concerned to protect business interests, to make laws regarding corruption more lenient, to reduce requirements for disclosure and accountability, and to block prosecution for corruption.
On the one hand, the government is seeking to tackle corruption. On the other hand, it is undermining such efforts. Corruption will not be reduced unless this is made an unquestioned priority by all government departments. For recommended actions for governments, see Anti-Corruption Programme for Governments.
Insufficient reporting of corruption: Insufficient reporting of corruption fuels corruption, as the perpetrators do not fear detection. Some of the reasons for insufficient reporting of corruption are as follows:.
Insufficient prosecution of corruption: Insufficient prosecution of corruption, both in developing and developed countries, will facilitate corruption. Unless there is clear evidence that corruption will be prosecuted, unscrupulous individuals and organisations will continue to commit corruption at the expense of those ethical individuals and organisations who do not do so.
It may also be due to lack of resources, or lack of co-ordinated action at national or international level by governments, donors and industry practitioners. In addition, corruption will not be significantly reduced if there is only prosecution of low level employees and officials.
It is only by prosecuting at higher levels that corruption will be significantly reduced. The individual employees of such a department who are responsible for the selection and management of projects may be vulnerable to corruption for a number of reasons:. The above factors may encourage such employees to extort bribes in relation to the projects that they are overseeing, or may make such individuals obvious targets for bribery.
This, therefore, may encourages unethical contractors to submit inflated claims and to carry out sub-quality work. The vulnerability of other government employees to corruption: Other government departments may be involved in projects for the purposes of issuing visas, import permits, customs clearances, planning permissions, land clearance permits and other matters.
In countries where corruption is widespread, the employees of such departments may have little incentive to act ethically, particularly where they are underpaid and are aware of large scale corruption higher up in government. They may therefore resort to extortion to supplement their incomes.
Contractors are often placed in the predicament of either having to comply with extortion demands, or to suffer losses and delays on projects, or to have to withdraw altogether from countries where extortion is common. Lack of publicly available data on corruption convictions: In carrying out due diligence in relation to a prospective project, potential lenders, donors and project participants should enquire as to the extent to which the potential major project participants, their senior employees, joint venture partners and group companies have been investigated, prosecuted and convicted for corruption.
However, it may be impossible for the party carrying out the due diligence to determine whether it has been provided with a truthful response. If countries maintained public national registers with information as to convictions and prosecutions, then this would significantly assist this aspect of due diligence.
The prospect of such public declaration of corruption conviction would itself serve to deter corruption by organisations and individuals who are concerned about their reputation.
Lack of sufficient data regarding comparative costing of infrastructure projects, materials, and methods : The lack of such data means that there may be no method of assessing a tender price other than against other tender prices submitted for the same project.
Where contractors are colluding to fix bid prices, then the respective tender prices will probably be inflated, so these will not be a reliable measure. In addition, lack of such data makes it more difficult to assess the cost claimed for variations, and therefore to detect those claims which may be fraudulently inflated. There are many factors at international level which facilitate corruption. Lack of inter-governmental co-operation : Insufficient co-operation between governments will facilitate corruption.
There should be co-operation and the development of a consistent approach in relation to the provision of government aid to countries where corruption is widespread, the requirement for the implementation in government and on projects of effective anti-corruption measures, the investigation and prosecution of corruption, and the enforcement of anti-money-laundering provisions. Without a co-ordinated approach on these matters, corrupt governments will continue to receive aid without sufficient controls, certain organisations will continue to be corrupt because they do not fear prosecution, and corrupt individuals will continue to benefit from their corruption.
Conversely, ethical organisations will be unable to win work in these jurisdictions, and if they do win work, will face extortion demands in obtaining permits, certificates and payments. For details of the international obligations on governments to co-operate, see Conventions. Lack of pro-active steps by funders to limit corruption on projects : As the providers of finance, funders e. It is not politically incorrect to impose such conditions.
It is a commercial and ethical necessity. The desire to allow countries e. Roles and Responsibilities of Legal Aid Providers 8. Legal Framework 3. Use of Firearms 5. Protection of Especially Vulnerable Groups 7. Aims and Significance of Alternatives to Imprisonment 2. Justifying Punishment in the Community 3. Pretrial Alternatives 4. Post Trial Alternatives 5. Concept, Values and Origin of Restorative Justice 2.
Overview of Restorative Justice Processes 3. How Cost Effective is Restorative Justice? Vulnerabilities of Girls in Conflict with the Law 3. Ending Violence against Women 2. Human Rights Approaches to Violence against Women 3.
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