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Relationship between Corruption and Development Assistance

Relationship between Corruption and Development Assistance

The relation between corruption and development assistance is somewhat paradoxical. Usually today, when development aid is granted to a needy country, it is monitored quite closely to avoid corruption.

A threat for corruption occurs because development assistance provides new resources to plunder.

But the problem can be more complex because when money goes in for one purpose, say improving civic education, it frees up the previously earmarked funds for another, potentially corrupt use.

In addition, corruption can appear at all stages of aid from the design and bidding stages to the implementation and auditing stages.                                    Relationship between Corruption and Development Assistance

Therefore, without the pillars of good governance in place, aid effectiveness declines.

  • Development assistance and aid is also worth noting because with increasing frequency, development aid organizations will not give funding to a country unless-there is a clearly stated anticorruption platform.
  • Since corruption encourages and rewards selfishness and denigrates collective action, it can be disempowering to the people and encourage their sense of alienation by undermining respect for .authority and increasing cynicism about leaders at all levels of society. Corruption also impacts social and cultural norms as t discourages participation in civil society. ,

Finally, corruption’s tendency to divert resources from the poor also impacts social norms, for example, by reducing the quality of education, literacy levels and civic empowerment.

As a result of corruption, researchers believe that the poor will be marginalized and social exclusion will increase.

Corruption & Poverty

Corruption’s impact on a nation’s economy and developmental growth is great. It reduces the overall wealth in a country, often discouraging businesses from operating in the instability that defines it.

  • The average income is about three times lower than in less corrupt countries.
  • Reduces the amount of money the government has to pay good workers and purchase supplies for government operations.
  • Distorts the way the government uses its money;

As a result, schools, health clinics, roads, sewer systems, police forces, and many other services that governments provide are worse than they would otherwise be as the government doesn’t have trust, economy or the workforce to ensure that supply meets demand.                          Relationship between Corruption and Development Assistance

Citizens are therefore less healthy, less educated, unsafe, and unable to grow their economy.

In addition, corruption allows money or connections to determine whether rules or laws are enforced.

For example, they can pay off judges through bribery to divert resources to their land, or pay off police to prevent personal conviction. For these reasons, corruption harms the environment and undermines trust in government.

  • Corruption is also an enormous contributor to poverty in a nation or community. Politically, corruption creates an environment for unsound economic policies, unpredictable processes, distorted public expenditures.
  • In business corruption will often result in unnecessary payments and the misallocation of talent.
  • Administrative barriers and weak property rights will also hit the poor harder. Healthcare and education are also unequally distributed due to low government revenues, poor service delivery, and less money for bribes, causing the poor to also be denied those basic human rights due to corruption.
  • Finally, in a corrupt environment the elite have power over judicial decisions, with decisions often made to the detriment of the poor.                            Relationship between Corruption and Development Assistance

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