HRL Reference 3

Corruption

DAVAO CITY - Presumptive President Rodrigo Duterte on Monday night gave dire
warnings to supposedly corrupt and inefficient government agencies and officials.
Speaking to reporters in Davao City, Duterte called the Bureau of Internal Revenue
(BIR), Bureau of Customs (BOC) and Land Transportation Office (LTO) as the "most
corrupt" agencies.
Duterte also said it may be better to simply disband these agencies.
"I'm very sorry pero sabihin ko sa inyo, isa sa pinaka-corrupt na agency ang BIR,
Customs, LTO -- iyang tatlong iyan... I-abolish ko na lang para wala na," he said.
Duterte also lambasted the "useless" Philippine Drug Enforcement Agency (PDEA),
saying that it cannot combat illegal drugs because many of its own officials are
embroiled in the narcotics trade.
He added that a high-ranking PDEA officer needs to be sacked from the agency
because of alleged connivance with drug syndicates.
Duterte said that once he assumes office, he will order the military to take over the
corruption-riddled agency.
Aside from the PDEA, Duterte also wants military men to lead the Bureau of
Immigration (BI), and the Bureau of Corrections (BuCor), which maintains the New
Bilibid Prison (NBP).
He also warned local government officials involved with illegal drugs. "Huwag kayong
magkamali d'yan kung naaawa kayo sa sarili n'yo. P***** *** mamamatay kayo d'yan." -
- With reports from Roxanne Arevalo and Doris Bigornia, ABS-CBN News
----------------------------------------------

MANILA - The Bureau of Customs (BOC) is the most corrupt among 36

government institutions, according to a Social Weather Stations (SWS)
survey.
The survey showed that the BOC had a negative sincerity net rating, meaning
the number of respondents who said they believe the bureau was insincere in
fighting corruption outnumbered those who said it was sincere.
The BOC had a "very bad" net rating of -55, though it increased from the -63
score recorded in 2013.
The survey was based on face-to-face interviews of executives of 966
companies from November 14, 2014 to May 12, 2015.
The BOC was recently stormed with complaints after it announced its plan
to randomly inspect balikbayan boxes.
The bureau later said the random inspections will no longer push through
following a meeting between President Benigno Aquino III and Customs chief
Alberto Lina and Finance Secretary Cesar Purisima.
The BOC was followed by five agencies with "poor" sincerity net rating: Land
Transportation Office (- 26); House of Representatives (-25); Department of
Public Works and Highways (-21); Philippine National Police (-16); and
Department of Agriculture (-10).

According to the SWS survey, nine agencies were in the "neutral" category:
Department of Budget and Management (-7); Commission on Elections (-6);
Bureau of Internal Revenue (-4); Senate (-2); Department of Transportation
and Communications (-2); Armed Forces of the Philippines (+4); Department
of Environment and Natural Resources (+6); trial courts (+6); and Department
of Interior and Local Government (+9).
Eight had a "moderate" sincerity net rating: own city government (+12);
Governance Commission for Government-owned and -Controlled
Corporations (+12); Presidential Commission on Good Government (+15);
Department of Finance (+12); own barangay government (+19); Department
of Social Welfare and Development (+24); Government Service Insurance
System (+27); and Department of Health (+28).
Under the "good" category were: Department of Justice (+34); Commission on
Audit (+36); Office of the Ombudsman (+36); Sandiganbayan (+37);
Department of Education (+43); Civil Service Commission (+41); Supreme
Court (+42); and Filipino business associations (+49).
Only five government agencies were ranked "very good" in the survey:
Department of Trade and Industry (+51); Office of the President (+54);
Philippine Stock Exchange (+55); Social Security System (+57); and
Securities and Exchange Commission (+63).
BRIBERY
The SWS said the survey showed that a record-low 39% of the executives
said most of the companies in their line of business give bribes to win public
sector contracts. The figure surpasses the previous record-low of 41% in 2012
and 2013.
Only 13% of those solicited for a bribe reported it.
The survey also revealed that a new record-low 32% said they have personal
knowledge of a corrupt transaction with government in the last three months in
their line of business.
Meanwhile, only 11% of the respondents said the government "often/almost
always" punishes corrupt government officials, a record-low compared to 20%
in 2013 and 27% in 2012.
The survey added that 90% agreed that "corruption will be reduced by the
passage of a strong law on the right of the people to information from the
government."
POSITIVE NEWS
Malacañang, in a statement, welcomed the "positive news" of a new-record
low 32% of business managers affirming personal knowledge of a corrupt
transaction with government.
"We welcome this positive news, which affirms global perception as reflected
in surveys such as Transparency International's Corruption Perceptions Index.
Under the Aquino administration, the Philippines has steadily climbed this
index, from a ranking of 134th in 2010 to 85th in 2014," Presidential
spokesperson Edwin Lacierda said.
"These figures reflect the reality of our government's transformation in recent
years: from one plagued by corruption and dishonesty to one that is
committed to public service through Daang Matuwid," he added.
He said "daang matuwid" will stretch beyond 2016, stressing that the fruits of
good governance can only be further reaped through continuity.
"The gains we have achieved only make more urgent the imperative to
continue a firm policy against corruption that is geared for the benefit of our
true bosses, the Filipino people," said Lacierda.

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POOR. Filipino residents living in shanties along a river bank collect useful items from trash in Pasay City
on December 27, 2014. File photo by Francis R. Malasig/EPA

MANILA, Philippines – Are you aware of how huge the impact of corruption is on the
country?

Under the administration of former president Benigno Aquino III, the campaign on good
governance was hinged on the slogan, "Pag walang kurap, walang mahirap (if there is
no corruption, there is no poverty)."

This anti-corruption campaign was supported by several studies – including a 2013

survey conducted by the Office of the Ombudsman, which showed that poverty exists
partly because of corruption.

Similarly, a report by the World Bank in 2001 said that fighting corruption results in
poverty reduction, better delivery of social services, and quality infrastructure.
Research we conducted on corruption in the Philippines and its impact on the economy,
businesses, social services, citizen participation in reporting bribes, and being party to
bribery yielded the following:

1. The Philippines lost $410.5 billion between 1960 and 2011 on illicit
activities

According to a 2014 report by Global Financial Integrity, the Philippines lost about
$410.5 billion between 1960 and 2011 on illicit financial flow. In current exchange rates,
the amount is about P19.34 trillion (without accounting for inflation).

The vast majority of money flowing illegally into and out of the Philippines over the 52-
year time span was done mostly through misinvoicing of trade. The table below shows
how much money the government lost between 1960 and 2011:

In effect, the P19.34 trillion lost to corruption could have been used for education, health
or infrastructure. In the 2016 national budget, this amount is:

 154 times the budget for health (P125.4 billion)

 52 times the budget for social protection (P370.4 billion)
 39 times the budget for education (P490.6 billion)
 25 times the budget for infrastructure (P759.58 billion)

2. $1 of every $4 goes unreported to Customs officials

In terms of lost revenue, the Bureau of Customs tops the list.

According to Global Financial Integrity, money flowing illicitly into the country takes
away 25% of the value of all goods as $1 in every $4 goes unreported to Customs
officials.

Since 2000, illicit financial flows have cheated the government of an average of $1.46
billion in tax revenue each year or about P68.8 billion in current rates.

To put that amount into perspective, the Philippines lost $3.85 billion in tax revenues in
2011 (P166.74 billion in 2011 rates) which is about 10% of the national budget that
same year.

3. The Philippines ranks 95th in the global corruption perception index

Apart from grave impact on the fiscal arena, corruption affects the business climate.
According to anti-graft watchdog Transparency International (TI), the Philippines slid in
its annual corruption perception ranking. With a score of 35 out of a possible 100, the
country currently ranks 95th among 168 countries surveyed, according to expert
opinion.

In 2014, the Philippines ranked 85th out of 175 countries, 10 notches higher than the
current rank. The country got a score of 38 out of 100.

Over the years, trust in the public sector seems to have improved based on TI's data.
According to the report, poor results are attributed to promises yet to be fulfilled and
corruption efforts undermined.

There were other issues that put the government in a bad light, such as the
Disbursement Acceleration Program (DAP) and the reported delay in aid to victims of
Super Typhoon Yolanda (Haiyan). (READ: What stats, surveys say about Aquino's fight
vs corruption)

4. In ASEAN, the Philippines is perceived as the 5th least corrupt nation

Compared to Southeast Asian neighbors, the Philippines currently is the 5th least
corrupt nation among 10 member-states in the region.

This is particularly important as these numbers determine how attractive the country is
to investors.

In 2014, the Philippines tied with Thailand as the 3rd least corrupt nation in the region. It
was when the country attained its highest rank in the past decade.

Back in 2008, the Philippines used to be the 4th most corrupt nation when it
experienced its lowest dip in rankings. At the time, alleged corruption during the term of
former president Gloria Macapagal-Arroyo hit an all-time high. (READ: TIMELINE:
Gloria Arroyo – from plunder to acquittal)

Throughout the decade, Singapore has remained to be the perceived as corrupt-free

not only within Southeast Asia, but around the world. It topped the rankings in 2010.

5. Filipino executives still think that the Bureau of Customs is the most
corrupt government agency

Likewise, corruption affects ease of doing business.

The results of the 2014/2015 Social Weather Stations Survey of Enterprises on
Corruption showed that 32% of Filipino executives surveyed said they have personal
knowledge of corrupt transactions with the government.

Among agencies, Filipino businessmen still think that the Bureau of Customs is the
most corrupt. The BOC received a sincerity rating of -55 from -65 in 2013. Despite the
improvement, it was the only agency with a "very bad" rating in its "sincerity" in fightiing
corruption.

The SWS terminology for net sincerity ratings are the following: excellent +70 and up;
very good +50 to +69; good +30 to +49; moderate +10 to +29; neutral -9 to +9; poor -29
to -10; bad -49 to -30; and very bad, -69 to -50.

6. Less Filipino businessmen engage in corrupt transactions

According to a 2014/2015 SWS poll, less Filipino executives were asked for bribes
during transactions. The number fell from 50% in 2012 to 44% in 2013 and 2014/2015.

Results also showed that 28% of the respondents said most companies in their line of
business gave bribes to win private sector contracts.

According to the poll, more businessmen think that the government does not punish
corrupt officials. Only 11% of the respondents believe that the government often or
almost always punishes corrupt officials, from 20% in 2013 and 27% in 2012.

However, 57% said that corrupt executives in their own sector of business are often
punished. In the same 2014/2015 poll, of those solicited for bribes, only 13% admitted
paying the bribe and reported the incident.

Overall, 64% of those surveyed were satisfied with the national government's
performance in promoting a good business climate but lower than 2013's record of 70%.

7. One out of 20 families engages in bribery

Apart from businesses, data show that families and individuals take part in dishonest
transactions as well.

In a 2013 survey, the Office of the Ombudsman found that one in every 20 Filipino
families paid a bribe or grease money when transacting with a government agency.

Compared to a similar survey by the Philippine Statistics Authority in 2010, fewer

families paid a bribe in 2013. The earlier survey found that two in every 20 families gave
grease money.
Results showed that agencies involved in the delivery of basic social services are more
vulnerable to corruption. Despite the decrease in participation in bribery, more families
paid bribes when availing of social services. In 2010, the percentage of families who
paid bribes was 4.1%; this increased to 4.5% by 2013.

Ironically, poor families are more likely to pay bribes just to have access to basic
services, the poll revealed.

8. More Filipinos report corrupt practices to authorities

Despite the aggressive anti-corruption drive of the government, the Ombudsman found
that the number of families that reported bribery incidents to public authorities is still low.

The 2013 survey said that 5.3% of the families who experienced being solicited for
bribes reported the incident. This figure is almost 7 times the percentage of families in
2010.

The most cited reason for non-reporting is the amount being asked is too small to
bother about. Other reasons were fear of reprisal and lack of time to report. – with
Denise Nacnac/Rappler.com

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High corruption levels severely restrict the efficiency of businesses operating in the Philippines.
Extensive bribery within the public administration and vague and complex laws make foreign
companies vulnerable to extortion and manipulation by public officials. Favoritism and undue
influence are widespread in the courts, leading to time-consuming and unfair dispute resolution,
and to an uncertain business environment. Corruption plagues the customs administration, and
fraud routinely occurs for companies when filing import and export documentation. The Anti-
Graft and Corrupt Practices Actcriminalizes active and passive bribery, extortion, abuse of
office and conflicts of interest. Giving gifts, except for gifts of insignificant value given in line with
local customs, is prohibited. Facilitation payments are not addressed by anti-corruption
regulations and private sector bribery is not criminalized. The legislative framework for fighting
corruption is scattered and is not effectively enforced by the weak and non-cooperative law
enforcement agencies.

Judicial System
Corruption risks are high in the judicial system. Bribes and irregular payments in return
for favorable judicial decisions are common (GCR 2015-2016). The judiciary is
formally independent, but the rich and powerful have frequently influenced proceedings
in civil and criminal cases (BTI 2016). Procedural fairness and transparency are
severely undermined by nepotism, favoritism, and impunity (HRR 2016). Companies do
not have sufficient faith in the independence of the judiciary and they rate the efficiency
of the legal framework in settling disputes and challenging regulations as poor (GCR
2017-2018). Investment disputes can take several years to resolve due to a lack of
resources, under staffing, and corruption in the court system (ICS 2017). Low salaries
for judicial officials are said to perpetuate the problem of bribery (BTI 2016). The
judiciary is underfunded by the state and often depends on local sponsors for resources
and salaries, resulting in non-transparent and biased court decisions (FitW
2017). Foreign investors have noted that the inefficiency and uncertainty in the judicial
system are disincentives for investment; investors regularly decline to file disputes due
to the perception of corruption among personnel and the complex and slow litigation
processes (ICS 2017). Enforcing a contract takes much longer than the regional
average, but the costs involved are significantly lower (DB 2017).

In one recent case, a businessman filed an administrative complaint in the country's

Supreme Court against Makati City judge for allegedly asking for a PHP 15 million bribe
in exchange for a favorable ruling in an insurance claim (Inquirer, Aug. 2016). At the
time of review, no further updates on the case were available.

Police
There is a high-risk of corruption when dealing with the police. The national police force
is widely regarded as one of the most corrupt institutions in the country (ABS CBN, Jan.
2017). Reports of the police and military engaging in corruption, extortion, and being
involved in local rackets are widespread (FitW 2017). Companies report that they
cannot rely on the police services (GCR 2017-2018). More than half of firms pay for
private security (ES 2015). Businesses rate the National Police's commitment to fighting
corruption as 'poor' (SWS 2016). President Duterte has accused several police generals
of being involved in the trafficking of illegal drugs (ABS CBN, Jan. 2017).

In one corruption case, Police Commissioner Mr. Sombero, is under investigation for
allegedly facilitating a PHP 50 million bribe from gambling tycoon Jack Lam, who tried to
bribe immigration authorities in order to release approximately 1,300 Chinese nationals
who were working in his resorts illegally (CNN Philippines, Feb. 2017).

Public Services
Companies contend with a high corruption risk when dealing with the public
services. Approximately half of business executives reported being asked for a bribe by
someone in the government in 2016 (SWS 2016). Nearly three out of five business
reported expecting to give gifts in order 'to get things done', but only one in ten reported
expecting to give gifts to get an operating license (ES 2015). Irregular payments and
bribes in the public utilities sector sometimes occur (GCR 2015-2016). Philippine
officials involved in processing documents related to civil and property registration and
building permits are more likely to solicit bribes compared to officials dealing with other
types of services (Ombudsman's Office Survey 2013). Inefficient government
bureaucracy is ranked as the most problematic factor for doing business in the
Philippines (GCR 2017-2018). Civil servants often do not have the resources or abilities
to fulfill their tasks free from corruption and red tape (BTI 2016). Furthermore, civil
servants are generally not recruited in a competitive manner; appointments are based
on a practice of patronage (BTI 2016).

The total number of procedures required to startup operations, including registering the
company with local government and getting a construction permit, are significantly
higher than regional averages (DB 2017). Getting electricity takes significantly less time
than elsewhere in the region (DB 2017).

Land Administration
Corruption risks in the land administration are high. Two out of five companies report
expecting to give gifts when obtaining a construction permit (ES 2015). Property rights
are formally recognized and protected in the Philippines, but in practice the law is not
always upheld (ICS 2017). Businesses have insufficient confidence in the protection of
property rights (GCR 2017-2018). Corruption and arbitrariness in the application of the
law is common (BTI 2016; ICS 2017). Multiple agencies are responsible for land
administration, which has led to overlapping procedures for land valuation and title
registration; this has made the process costly (ICS 2017).

The court system is slow to resolve land disputes (ICS 2017). Land records are not
properly managed due to a lack of trained personnel and funds (ICS 2017). Foreigners
are not allowed to directly own land, but they may lease land for up to 50 years with a
possible one-time extension of 25 years (ICS 2017). Expropriation is possible under
Philippine law; the law calls for fair market value compensation, but coming to a
mutually acceptable price can be a lengthy process in the court system (ICS
2017). Registering property takes nine procedures in the Philippines, which is double
the regional average (DB 2017). However, the total time required is less than half of the
regional average (DB 2017).

Tax Administration
There is a high risk of corruption when dealing with the tax administration. Around one
in seven companies indicate they expect to give gifts in meetings with tax officials (ES
2015). Tax regulations are among the most problematic factors for conducting business
in the Philippines (GCR 2017-2018). Companies indicate that they perceive that only a
fifth of businesses in their line of business pay their taxes honestly (SWS
2016). Officials at the Bureau of Internal Revenue (BIR) are believed to be prone to
corruption and known for embezzlement and extortion (Manila Bulletin, Feb. 2014). A
typical example of this can be found in a recent case in the city of Bacolod; an officer
with the BIR was caught extorting PHP 125,000 from a local company (Philippine News,
Mar. 2017). Businesses rate the BIR's commitment to fighting corruption as poor (SWS
2016). On a more positive note, there are signs that the BIR is pursuing more cases of
tax evasion (BTI 2016).

Companies make twenty eight tax payments a year, which is higher than the regional
average (DB 2017).

Customs Administration
There is a high risk of encountering corruption when dealing with the customs
administration. Companies indicate that irregular bribes and payments in import and
export procedures are very common (GETR 2016). About a quarter of companies
indicate they expect to give gifts when obtaining an import license (ES 2015). A
business survey indicates that the Bureau of Customs (BOC) was the only agency
receiving a rating of ‘very bad’ when it came to its commitment to fighting corruption
(SWS 2016). Companies cite burdensome import procedures and corruption at the
border as being among the most problematic factors for importing (GETR 2016). The
efficiency and time predictability of procedures are rated as poor (GETR 2016). Border
compliance costs in the Philippines are significantly higher than the regional average,
whereas the time required is in line with the regional average (DB 2017).

The Bureau of Customs (BOC) has indicated that smuggling of goods, among which
cigarettes, vehicles, and oil, into the Philippines has led to the evasion of taxes worth at
least USD 1 billion yearly (Philstar, Feb. 2017). Consistent fraud in the form of under-
invoicing when importing and exporting costs the state USD billions in revenues each
year (Wall Street Journal, Mar. 2014). In 2016, the BOC alleged one of its employees
accepted as much as USD 4 million in bribes monthly (Rappler, Aug. 2016).

Public Procurement
There is a very high risk of corruption in the public procurement sector, which is subject
to rampant corruption, irregularities, and inconsistent implementation of legislation.
Likewise, more than a fifth of businesses report they expect to give gifts in order to win
a government contract (ES 2015). Two in five companies indicate that most companies
in their sector give bribes in order to win contracts (SWS 2016). Diversion of public
funds as well as favoritism in the decisions of public officials is very common (GCR
2017-2018). The public sector is obliged to procure goods and services from companies
with at least 60% Philippine ownership (ICS 2017). Local-level public procurement lacks
transparency, fostering a culture of corruption through the misuse of the pork barrel
system; which are funds for discretionary use by representatives for projects in their
respective districts (BTI 2016). Philippine law allocates responsibility for monitoring,
investigating and sanctioning irregularities in public procurement to a number of
different state institutions, leaving potential misconduct, inefficiency and impunity
unchecked (Sunlight Foundation, Oct. 2013).

Natural Resources
Companies operating in the natural resources sector face a high risk of corruption. The
Philippines has shown marked improvements in its natural resource governance in the
past few years; the country has a good enabling environment and its regulatory quality
and control of corruption are judged as adequate (NRGI 2017). However, poor value
realization and revenue management have caused the country's overall resource
governance to be judged as 'weak' (NRGI 2017). The Philippines has been working to
achieve compliance with the Extractive Industries Transparency Initiative (EITI) since
joining in 2013 (EITI 2016). Some mining contracts are publicly disclosed via the EITI
portal. While transparency in the sector has improved, poor regulation and overlapping
policy responsibilities between local and central governments have meant that small-
scale mining is still a contentious issue (EITI 2016).

Government corruption has allowed mining companies to evade government

regulations, which has resulted in large-scale deforestation, flattened mountaintops and
water pollution (New York Times, Apr. 2017). The government responded by cracking
down on illegal mining operations; and as of 2017 Secretary of the Environment Gina
Lopez shut down 28 of the country's 41 mining companies for polluting the environment
(New York Times, Apr. 2017). However, Lopez was removed from her job by Congress
in May 2017 after mounting complaints from the pro-mining lobby (Mining.com, May
2017).

Legislation
Companies should note that the legal anti-corruption framework in the Philippines is
complicated and poorly enforced; there is a lack of cooperation between law
enforcement agencies, and officials are rarely prosecuted and convicted for corruption
crimes (HRR 2016). The Anti-Graft and Corrupt Practices
Act criminalizes active and passive bribery, embezzlement, extortion, abuse of
office and conflict of interest in the public sector. Bribery of public officials and trading in
influence are also criminalized in the Anti-Red Tape Act. The Act forbids office-holders
from accepting any gifts or material benefits in exchange for any government permit or
license. Under the Revised Penal Code, gifts are classified as indirect bribery. An
exception is made for gifts of insignificant value given as a token of friendship in line
with local customs. Facilitation payments are not addressed in the law. Private sector
bribery is not criminalized (UNODC 2014). Under the Code, public officials are required
to regularly file a statement of their assets and liabilities. In case of any discrepancy
between the official's asset declaration and the amount of property or financial assets
actually possessed, the official is subject to immediate dismissal. Punishments for
corrupt acts includes imprisonment of up to ten years, a fine, removal from office, and/or
confiscation of property. The Anti-Money Laundering Act criminalizes money laundering
and organized crime. The Act Establishing a Code of Conduct and Ethical Standards for
Public Officials and Employees formulates standards for the personal integrity and
accountability of civil servants. The Government Procurement Reform Act requires
competitive and transparent bidding. Philippine legislation does not contain any
provisions on protecting whistleblowers who report on corruption. The Philippines has
ratified the United Nations Convention against Corruption.

Civil Society
The Constitution guarantees freedoms of speech and of expression, but in practice
these freedoms are not consistently upheld (HRR 2016; BTI 2016). The media
environment is largely privately owned and diverse, and the state generally
exercises very little censorship (BTI 2016). The views represented in the mainstream
media are heavily influenced by the oligarchical owners of many of the outlets (BTI
2016). The Philippines is the second most dangerous country in the world for journalists
to operate in, as measured by the number of journalist deaths (BTI 2016). The state is
not directly responsible for the violence, which can mostly be blamed on local
strongmen and criminals and the weakness of the authorities (BTI 2016). The existence
of libel and defamation laws remains a problem and are frequently used by officials and
powerful individuals to try to silence journalists (FotP 2016). The media does frequently
report on high-level corruption cases (FotP 2016). Independent observers report that
bribes and other incentives are often used by high-level officials to motivate journalists
to create one-sided reports for the official's benefit (HRR 2016). Internet access is
widely available, but there are concerns about the government trying to install some
degree of censorship (FitW 2017). The Philippine press is classified as 'partly free'
(FotP 2016).

Philippine civil society is active and is represented by a wide variety of different

organizations. Public participation is high and civil society organizations (CSOs) enjoy a
high level of social capital (BTI 2016). CSOs are normally not included in formal
decision-making, but they play a large role in initiating legislation and steering debate in
Congress (BTI 2016). There are a multitude of watchdog organizations monitoring
implementation of policy (BTI 2016).

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It undermines the institution and values of our democracy.

Impact of corruption is very hard on public life.

This is more of awkward and defaming condition than being problematic.

But it appears that the corruption is ever rising and unstoppable.

Further the people involved in corruption seem to be hiding themselves by blaming others. Even they
are proud of themselves as they made more money in short time.

To worsen the condition further, those involved in corruption are able to get better promotions
and opportunities.

People also have developed an opinion that it is the only way to get their work done. If not, the work
will be pending for long or even might not be done.

Effects of corruption on people

Lack of quality in services:
In a system with corruption there is no quality of service. To demand quality one might need to pay for
it. This is seen in many areas like municipality, electricity, distribution of relief funds etc. If a person
has to purchase a like medicine, due to corruption in education then the candidate after completion of
his course will not like to provide quality health service if there is not enough remuneration for his
service. Further candidates who do not have the ability can also get into the same seat by purchasing
it. So though he becomes a medical practitioner, he may not be competent enough.
Also read: Important Causes of Corruption in India
Lack of proper justice: Corruption in judiciary system, leads to improper justice. And the victims of
offense might suffer. A crime may be proved as benefit of doubt due to lack of evidence or even the
evidence erased. Due to corruption in the police system, the investigation process goes on for
decades. This lets the culprits roam free and even perform more crimes. There are even chances that
criminals due to old age due to delayed investigation. So it lead to “Justice delayed is justice denied.”
Chances of Unemployment: This we can see with an example. The private education and training
institutes are given permits to start providing education. This permit is given based on the infrastructure
and sufficient recruitment of eligible staff. Here there are good chances of corruption. The institute or
college managements try to bribe the quality inspectors so as to get permits. Though there are no
sufficient eligible staff these institutes get permission by the inspectors leading to unemployment.
Instead of 10 faculty a college is run by 5. So, even if well qualified persons wish to get job there, they
will not be offered. If there was no corruption by inspectors, then there would be chance for more
employment.
Poor Health and hygiene: In countries with more corruption one can notice more health problems
among people. There will be no fresh drinking water, proper roads, quality food grains supply, milk
adulteration, etc.
These low quality services are all done to save money by the contractors and the officials who are
involved. Even the medicine provided in hospitals for the hospitals are of sub-standard quality. So all
these can contribute to ill health of common man.

Pollution: Pollution is mostly emitted in the form of water pollution, air pollution and land pollution. This
pollution is from vehicles and factories. The governments have a monitor on this pollution by regular
check of vehicle emissions and also industrial exhausts.
Corruption in the government department lets the industry people opt to release of untreated and
harmful waste into rivers and air. If there is no corruption, there can be fair probes. Then the industry
personnel will treat the waste such that it is less toxic and harmless to environment and people in it. So
we can mean that corruption is also the main cause of pollution.
Accidents: Sanction of driving license without proper check of driving skills in the driver leads to
accidents and death. Due to corruption, there are countries where one can driving license without any
tests.
Failure of genuine research: Research by individuals needs government funding. Some of the funding
agencies have corrupt officers. These people sanction the funds for research to those investigators
who are ready to bribe them. In doing so, they do not sanction the funds to genuine and hardworking
investigators. Thus the research and development will be lagging. This seems to be not a problem to
the common public. But if we notice the resistance of microbes to drugs, we can know that there were
no new compounds discovered in the past few decades for efficient treatment of resistant microbes.
Effects of corruption on Society:
Disregard for officials: People start disregarding the official involved in corruption by talking negatively
about him. But when they have work with him or her, they again approach them by a thought that the
work is done if some monetary benefits are provided. Disregard towards officials will also build distrust.
Even lower grade officer will be disrespectful to higher grade officer. So even he may not obey his
orders. There were even incidents where a lower grade police officer kidnapped higher grade officer
for not offering him leave when asked.
Lack of respect for rulers: Rulers of the nation like president or prime ministers lose respect among
the public. Respect is main criteria in social life. People go for voting during election not only with the
desire to improve their living standards by the election winner but also with respect for the leader. If
the politicians involve in corruption, people knowing this will lose respect for them and will not like to
cast their vote for such politicians.
Lack of faith and trust on the governments: People vote to a ruler based on their faith in him/ her. But if
found to be involved in corruption people lose faith in them and may not vote next time.
Also read: How to Stop corruption
Aversion for joining the posts linked to corruption: Sincere, honest and hard working people
develop aversion to apply for the post though they like to as they believe that they also need to be
involved in corruption if they get into post.
Effects of corruption on Economy
Decrease in foreign investment: There are many incident where in foreign investments which were
willing to come to India have gone back owing to heavy corruption in the government bodies.
Delay in growth: Due to desire to mint money and other unlawful benefits, the official who need to pass
the clearances for projects or industries delay the process. A work which can be done in few day may
be done in months time. This leads to delay in investments, starting of industries and also growth.
Even if started, company growth hinders as every work linked to officials get delayed due to need to
provide bribes or other benefits
Lack of development: Many new industries wiling to get started in particular region change their plans
if the region is unsuitable. If there are no proper roads, water and electricity, the companies do not
wish to start up there. This hinders the economic progress of that region.
Differences in trade ratio’s: Some countries have inefficient standard control institutes. Or in other word
these standard control institutes are corrupt that they can approve low quality products for sale in their
country. Hence you can see countries manufacturing cheap products dump them in big markets.
These countries can manufacture cheap quality products but cannot dump in countries with strict
standard control institutes. They can do so only in countries with chances of corrupt officials in
standard control. One best example is China products which can’t be just dumped into Europe and
US markets. But can be done in Indian and African markets. So there arises trade deficit that these
countries cannot manufacture their own products at cheaper price than those exporting to them. So if
corruption is minimized than these countries will have less trade deficits in-terms of exports and
imports with other countries and their economies can prosper.