Corruption in the Philippines

 

ASIAN COLLEGE OF TECHNOLOGY 10-Perseverance

RESEARCH REPORT


How does corruption affect a country’s economy?

Economies that are afflicted by a high level of corruption—which involves the misuse of power in the form of money or authority to achieve certain goals in illegal, dishonest, or unfair ways—are not capable of prospering as fully as those with a low level of corruption. Corrupted economies are not able to function properly because corruption prevents the natural laws of the economy from functioning freely. As a result, corruption in a nation's political and economic operations causes its entire society to suffer.

 

Corruption affects a country in a way that it lessens the overall GDP of a country. Imagine 5 people saving money together and one of them takes half of the savings without informing the other 4. The total savings would then be halved and only one person would benefit from taking half of the savings. That is a basic example of corruption and its effects on the surrounding people that are involved.

 

The top 10 most corrupted countries (2020) are South Sudan, Somalia, Syria, Yemen, Venezuela, Sudan, Equatorial Guinea, Libya, North Korea, Haiti. Most of them have the same issues/problems. Some have constant wars, Shortage of food and medicine, unemployment and etc. These are the most prominent effects of corruption in a country, if corruption is too rampant then no more money is going to the development of the country. The country falls into ruins because of leaders that steal money from the people of the country.

 

What are the indicators of corruption?

A study based on literature and interviews maps PAF corruption indicators and investigates their role and effectiveness in monitoring corruption. In general, the main message is to clarify the goals of budget support as well as the purpose of including corruption indicators.

The use of aid delivery modalities that doesn’t follow the traditional models of having to follow the guidelines regarding sending aid through formal guidelines instead enables support directly to go to the recipient countries. In favor of budget support they point out that it reduces transaction costs, serves to reinforce country ownership, has a positive impact on country systems, and enables scaling up of growth assistance. While budget support appears to be generally to be immune to corruption, the current lack of evidence does not suggest that it actually is more sensitive to it.

Corruption detection can be expected to occur in various government activities, not just in certain government services, as well. The claim is made that many countries are trying to carry out multiple functions through PAFs. Limiting and prioritizing resources is a prior to investing in countries with many priorities sounds contradictory, but has become standard practice in relation to the use of PAF (Program for the Elimination of Conflict-expand for Good Governance). One of the criticisms of PAFs is that instead is the opposite and that they undermine the partners' involvement in their own country's development.

Concerns not withstanding, the PAPFs are regarded as important, especially in "Seating Politicising" in new governments or states, for preserving and perpetuating reform policies. while having PAFs is not solely meant to serve as a means of attention getting device control, the indicators would need to be looked into as well.

 

  Why is corruption rampant in the Philippines?

Among the most common causes of corruption are the political and economic environment, professional ethics and morality and, of course, habits, customs, tradition and demography. In this study it has said that the factors of the corruption on a  political level is the failure of leading a country. There was always corruption in past centuries and it affects all civilization; still, only our generation has seriously tackled the dark side of the government

The phenomenon of corruption is strongly influenced by the political and economic environment. The more is the economic activity in the country regulated and limited, the higher the authority and the power of officials in decision making, the greater the possibility of corruption. The low salaries of public administration employees (state officials), who are therefore trying to improve their financial position by receiving bribes, also affect the corruption. Low wages are not the only cause of corruption; the poor state of the public administration, which is a consequence of political "overcrowding"4 of officials, due to which loyalty usually prevails over professional standards. Economy is largely dependent on politics and often reflects the rule of law, and bribery is just one of the possible weapons in the struggle to gain a job. The higher the salary, the smaller the chance that the person will act corruptly, according to Svenson and Johnston. Johnston points out useful thinking in terms of two types of equilibrium: the balance between openness and autonomy of the institutions and elites it leads and balance between political and economic power and opportunities for cooperation. Where the official power is poorly institutionalized, too exposed to private influence, and the officials' independence is reflected in excessive exploitation of their power, the possibility for extreme corruption is again high.

 

                               What are the disadvantages of corruption?

 

When you see a country that has abolished itself you always ask what happened, But most of the reasons why are probably corruption. The most common disadvantage of corruption is that most countries that has a high level of corruption are unable to function efficiently or prosper at an economic level, causing suffering for society as one. A great example for what I mean is Venezuela, a country that relies on their lives on the videogame runescape. Most of the Citizens in Venezuela have a hard time living and can barely compete with the current economic level so they trade the money in-game for money in real life.

Corruption is likely to adversely affect long-term economic growth, equality and the quality of a country's governance. It also affects equitable distribution of resources across the population, increasing income inequalities and undermining the effectiveness of social welfare programs. In some highly regulated countries it is also likely to undermine the regulatory environment and the efficiency of state institutions.

Glossary

Corruption: dishonest or fraudulent conduct by those in power, typically involving bribery.

Abolished: formally put an end to (a system, practice, or institution).

Runescape:  a massively multiplayer online role-playing game

Phenomenon: is an observable fact or event.

Equilibrium: a state of rest or balance due to the equal action of opposing forces.

Undermine: lessen the effectiveness, power, or ability of, especially gradually or insidiously.

Adversely: in a way that prevents success or development; harmfully or unfavorably.

Equitable: fair and impartial

Bribery: the giving or offering of a bribe.

 

 

Corruption indicators in Performance Assessment Frameworks for budget support. (n.d.). U4.No. Retrieved April 21, 2021, from https://www.u4.no/publications/corruption-indicators-in-performance-assessment-frameworks-for-budget-support.pdf

 

 

‘PAF weakened by corruption.’ (2014, July 2). The Philippine Star. https://www.philstar.com/headlines/2014/07/02/1341432/paf-weakened-corruption

 

Causes of public sector corruption. (n.d.). UNODOC. Retrieved April 22, 2021, from https://www.unodc.org/e4j/en/anti-corruption/module-4/key-issues/causes-of-public-sector-corruption.html

 

Sumah, S. (2017, October 17). Corruption, Causes and Consequences. Intechopen. https://www.intechopen.com/books/trade-and-global-market/corruption-causes-and-consequences

 

THE IMPACT OF CORRUPTION ON GROWTH AND INEQUALITY. (n.d.). Transparency International. Retrieved April 21, 2021, from https://www.transparency.org/files/content/corruptionqas/Impact_of_corruption_on_growth_and_inequality_2014.pdf

 

Mirzayev, A. (2020, April 10). How Corruption Affects Emerging Economies. Investopedia. https://www.investopedia.com/articles/investing/012215/how-corruption-affects-emerging-economies.asp