Corruption or Financial/Corporate Illegality

Corruption or Financial/Corporate Illegality

Corruption continues to be an underlying problem in many countries. From the grass root level to the highly placed organizations, the issue has markedly perpetuated. This has served as an obstacle to worldwide development. Corruption is very grievous and has been one of the reasons behind the rise in poverty levels in developing countries. As a result, corporate illegality has drawn the focus of many non-governmental organizations. However, there is no much change recorded, and to some extent, the not for profit organizations have become compromised. A report by the African Union highlighted that 25 percent of Africa’s gross domestic product is lost annually due to corruption (Sandbrook, 20120. Corruption is in different forms such as bribery, embezzlement, fraud, among others and can be small scale or grand scale. This illegal activity can be performed by even the very least an ordinary citizen. In developing countries, the act of corruption is mostly political. This is where the rulers subvert public resources for private gains. This issue has made most citizens endure a slimy pit of despair attributed to poverty and underdevelopment in the hands of the corrupt leaders. Despite the many initiatives by both the national and international bodies to eradicate corruption, the practice is still pervasive in most developing countries.

The literature on Corruption and Financial/Corporate Illegality in Developing Countries

In the field of political science, the focus of corruption is on the aspects of power. In African countries, corruption emanates from unfitting institutional arrangements. According to Sandbrook, the neopatrimonialism school of thought explains how African politics have been used by political elites to promote corruption (2012, 42). The politicians monopolize power and in so doing acquisition materials during their term of the ruling. To make matters worse, the politicians strategically place persons who are close relatives or friends to do their bidding (Klein Haarhuis&Leeuw, 2004, 550). This institutionalized arrangement acts as a provision meant to perpetuate the concealment of funds to the point that it is not detected. The forms of corruption that transpire are such as fraud, embezzlement of funds, among others that increase their private possessions.

Various acts are prevalent forms of corruption. One of the most pervasive practices is bribery where people offer money or other services to ask for a favour or something else. Further, embezzlement of resources happens where a person uses a position of guardianship to steal funds. Favouritism is a widespread practice that occurs when people use their positions to favour their friends or relatives. In these cases, the people in power cross a line and overlook other people's merits when hiring. Corruption has common characteristics inboth the domestic and international level. First, the act is calculated. The implication is that people who engage in corrupt activities are organized and tend to fulfill their individual needs. This is a common issue where a person taps resources meant for the public purpose and direct them to serve their vested interests (Ndjio, 2014, 89). The drive of a corrupt person is an opportunist which causes the underprivileged to lack the right to necessities.  The greed for money drives people to engage in illegal activities for illegitimate private gain.  Further, corruption can be political. In this case, the political elites misuse their power and status to engage in fraudulent activities. The bureaucratic processes are also a breeding ground for those in administrative posi

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