Bribes can also be extorted by the threat of inaction or delay.
WORK POLITICS DEFINITION REGISTRATION
Bribes may be offered to speed up the government's granting of permission to carry out legal activities, such as company registration or construction permits.
Sometimes politicians and bureaucrats deliberately put in place policies that create control rights which they profit from by selling.
WORK POLITICS DEFINITION LICENSE
Bribes may be demanded or offered for the issuance of a license that conveys an exclusive right, such as a land development concession or the exploitation of a natural resource. In many countries the tax bill is negotiable. Such bribes may be proposed by the tax collector or the taxpayer. Bribes can be used to reduce the amount of taxes or other fees collected by the government from private parties. Bribes can influence the allocation of government benefits, whether monetary benefits (such as subsidies to enterprises or individuals or access to pensions or unemployment insurance) or in-kind benefits (such as access to certain schools, medical care, or stakes in enterprises being privatized). Firms may bribe to win a contract or to ensure that contractual breaches are tolerated.
Bribes can influence the government's choice of firms to supply goods, services, and works, as well as the terms of their contracts. They can be used by private parties to "buy" many things provided by central or local governments, or officials may seek bribes in supplying those things. Bribery occurs in the private sector, but bribery in the public sector, offered or extracted, should be the Bank's main concern, since the Bank lends primarily to governments and supports government policies, programs, and projects.īribes are one of the main tools of corruption. This definition is both simple and sufficiently broad to cover most of the corruption that the Bank encounters, and it is widely used in the literature. Public office can also be abused for personal benefit even if no bribery occurs, through patronage and nepotism, the theft of state assets, or the diversion of state revenues. It is also abused when private agents actively offer bribes to circumvent public policies and processes for competitive advantage and profit. 1 Public office is abused for private gain when an official accepts, solicits, or extorts a bribe. We settled on a straightforward definition the abuse of public office for private gain.
In considering its strategy the Bank sought a usable definition of corruption and then developed a taxonomy of the different forms corruption could take consistent with that definition. To understand its effect on an economy or a political system, it helps to unbundle the term by identifying specific types of activities or transactions that might fall within it. The term corruption covers a broad range of human actions. This chapter looks at the complex nature of corruption, its causes, and its effects on development.
It leads governments to intervene where they need not, and it undermines their ability to enact and implement policies in areas in which government intervention is clearly neededwhether environmental regulation, health and safety regulation, social safety nets, macroeconomic stabilization, or contract enforcement. But while costs may vary and systemic corruption may coexist with strong economic performance, experience suggests that corruption is bad for development. Its roots lie deep in bureaucratic and political institutions, and its effect on development varies with country conditions. Corruption and Economic DevelopmentĬorruption is a complex phenomenon. Helping Countries Combat Corruption: The Role of the World BankĬontents / previous / next 2.
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