Corruption is the use of powers by the government for illegitimate private gain. Some forms of corruptions are bribery or extortion. Corruption may facilitate criminal enterprise like drug trafficking and money laundering (En.wikipedia.org, 2019). Corruption is most commonplace in mafia states, narco-states. Corruption may be in different sizes. It may be between small groups of a few people, and large corruptions are connected with governments. Corruptions are mostly caused because of greediness for money, higher levels of bureaucracy, and because of large ethnic divisions.
Corruptions hurt economic performances. Public money is for government services and for making big projects. Governments get money from people paying taxes, investments and other means of financing government expenditure. This money should be used for roads, hospitals, education. Corruption is a problem because it eats all the wealth and takes away the money for big projects. A lot of people need support from the government (Corruptionwatch.org.za, 2019). Some people’s lives depend on the government’s support. If governments do not help people, people will start to regret their choices and may even leave the country.
Corruption also affects businesses and investments. It has been argued that high-level corruptions will reduce the country’s growth levels by affecting investments. Many studies have shown the same outcome. Reduction in investment quality was further evidenced in a paper, showed that higher levels of corruption resulted in less efficient infrastructure expenditure. We can see, that investment values have changed because of corruption. In more than 20 regions, the values have dropped. In Sicily, the value dropped from 0.8992 to 0.8986 (Finocchiaro Castro, M., Guccio, C. & Rizzo). Another example was in Umbria, and the value dropped from 0.9497 to 0.9491. The values for investments dropped and it was all due to corruption.
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Corruption wasted trillions of dollars when it could have been used for helping poor people for at least six years. According to the United Nations, $1.26 trillion was wasted for corruption, bribery, and theft (Akeomoa, 2019). The most destructive corruption occur mostly when top politically officials have the right to make laws that will help them. They are often selfish and they use this opportunity for their own good.
Worldwide in cities, because of democratic governments, the populations are high and successful. The Problem of emigration in the democratic city is corruption. Due to corruption, people’s personal interests often do not match the government’s thoughts and choices. Bribes paid to central administrative officials is one cause of misdirection of several important projects. Another cause of misdirection is the misdeeds of politicians. This is where the money is wasted when people need it elsewhere.
