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Corruption has economic and social effects on people and business around the globe. It lowers economic growth, discourages investment, and marginalizes and restricts global markets. It erodes support for economic aid and puts a heavy economic burden on the poor and lowers the standard of living of the people. Countries are concerned and are trying to combat corruption. Many sociologists, political scientists, and economists know the reasons for corruption, and many methods have been suggested to combat it. However, the process is very slow and ineffective. My article discusses the effect of corruption and the methods for controlling it.
Introduction
The world is becoming one integrated global market mostly dominated by U.S. and Japanese companies. That is, these dominant economies sell and produce their goods in developed and developing countries.
As more and more companies try to enter the global market, competition develops among companies of different countries. In order to compete, these companies try to explore markets in many developing countries. Therefore, business and country leaders are focusing on removing obstacles to global markets. A major barrier is the existence of corruption in many countries. According to the chairman of an anti-bribery task force for OECD (Organization for Economic Cooperation and Development), corruption is widespread worldwide and is growing.
Corruption has been considered an evil for centuries by people in both developed and developing countries. The birth of a global market has brought it into a new prominence. Multi-national companies and government officials agree that, besides being a social evil, it has an impact on all other aspects of the economies. That is, corruption in international business transactions has a devastating effect on the world economies. It increases the risks and cost of doing business and reduces the trust of investors. It raises questions about the integrity of all the business executives conducting business in corrupt countries. It eliminates the economic benefits of free trade and privatization of economies by restructuring investment to companies who can pay the largest bribes. Many countries, where businesses are allowed to bribe, have increased their investment in other countries.
Bribery
It is hard to define bribery or corruption as they take many forms. Bribe means payment or other favors to induce others to act in favor...