Bribery is a very common phenomenon faced by countries globally. The roots of bribery lie deep within a country’s bureaucratic and political institutions. The effects of this tend to vary according to the economic and development conditions of the country.
A country that is still developing will suffer more economically as compared to a country that is already developed. The economic conditions will worsen when unfair distribution occurs within the economy. Bribery leads to government intervention, where it is not needed. On the other hand, where government intervention is required, they fail to respond or perform well.
Bribery and corruption are interconnected. Funds that are allotted for national development are robbed off by financial criminals. Corruption can simply be defined as the exploitation of public office and authority for personal gains.
When individuals – who are usually government officials – misuse public offices and resources for their own personal profits and gain, it is corruption. The misuse can be in the form of offering and receiving bribery, nepotism, thwarting policies and misuse and theft of state assets. All of these can be defined as corruption.
Bribery is directly related to banks since they support government policies, programs and projects. Bribery in the public sector is the main concern of banks. The deals involving large sums of money and transactions made through banks lead to apprehension.
The main tool of corruption is bribery in the public sector. Private parties looking for contracts with the government use this method to bend them in their favor. The local and federal government both are the victims of bribery. This phenomenon occurs when a private contractor wants to influence government’s choice to supply goods or services for a public project. Government contracts mean big profits for a private company.
Bribery can influence the allocation of government benefits like subsidies provided to individuals and enterprises. Other benefits such as retirement insurance and access to pensions can also be influenced. Bribes can bend government decisions towards providing benefits like medical care and admission to certain schools.
Although many countries offer negotiable tax bills, bribery can also do the trick. In countries where taxes are high and there’s no room for negotiations, firms offer bribes to lower their tax bills. Such bribes are offered and asked from both the tax collector as well as tax payer.
When it comes to issuing government permits and licenses for certain business operations, officials deliberately impose certain control rights. This means that when a company needs a license, they would have to offer a bribe to the government official. Different projects like land exploration and development allowance needs licenses from the government.
New companies need to speed up official documentations and other legal formalities, since unnecessary delays in such processes may open door to bribery. Officials can threat companies to delay their documentation and as a result companies end up paying heavy bribes to save time.
Bribery can also change the legal outcome of many cases. Illegal activities such as drug dealings and favoritism in court cases can be done by offering a bribe. Officials can overlook illegal activities and refrain from imposing heavy taxes on bigger corporations if they’re offered a huge sum of money as bribe.
The scale of corruption depends on the amount of money involved and the level at which it is done. The higher the level of corruption, the bigger news it will create and the country’s economy will suffer greatly, as a major consequence. Corruption through bribery occurs at all levels. The frequency of corruption done at smaller level ends up causing a higher level of economical damage.
This is also corruption when state assets are stolen and sold off for personal gain. Misuse or unfair distribution or exploitation of financial and physical resources is another form of theft. Government officials are responsible for state assets but when they are corrupt, they would misuse them for personal gains.
When it comes to foreign companies doing business with developing countries, corruption is inevitable. Projects allocated to foreign companies may open doors for international bribery. The reasons can be multiple. In developing countries, strong parties would want a strong hold on the economy or the land.
Given the large amounts of money involved, it is easy to comprehend the real motive behind foreign bribery. Although foreign investments are ideal for a country’s development, it can also take a lot away. Bribery from suppliers of goods and services can change the entire landscape of a deal.
Intervention and influence by foreign parties in a country’s development project can be severely detrimental to national interest. The focus drifts away from national interest and leads to corruption. When foreign companies and governments bribe a developing country, their main motive is exploitation of natural resources.
Consider an underdeveloped country with numerous oil fields. Foreign bribery can influence the government’s decision to allow foreign drilling and exploration of the resource. This would mean that an expensive natural resource will be benefitting someone else. A developed country is in need of natural resources for its development and if that goes away, what remains?
The involvement of foreign countries in a country’s economic growth and development does not come for free. The motive of the foreign country would definitely be personal gains. If one foreign company is taking interest, it means they are seeking their own interests and gains.
The development of a country depends on the management of resources and accountability of those in charge of their distribution. A combined contribution with strict policies against corruption and bribery – both on national and foreign levels – can help a country develop and gain prosperity.