.orruption is both a major cause and a result of poverty around the world. It occurs at all levels of society, from local and national governments, civil society, judiciary functions, large and small businesses, military and other services and so on.corruption undermines political development, democracy, economic development, the environment, people’s health and more.
The Dark Side of Social Evolution (London: Anthem Press, 2002), “Rich countries and their agencies … commonly have been and are accomplices in corruption abroad, encouraging it by their actions rather than impeding it…
· The impact of Cold War corruption (supporting dictatorships, destabilizing democracies, funding opposition, etc);
· Firms from rich countries bribing rulers and officials from developing countries to gain export contracts, particularly in the arms trade and in construction (even justifying it by suggesting bribery is “customary” in those countries, so they need to do it to, in order to compete);
· The “corruption-inducing effects of the purchase, by the rich countries and their international corporations, of concessions in Third World countries to exploit natural deposits of oil, copper, gold, diamonds and the like.” Payments made to rulers often violate local (and Western) rules, keeping corrupt rulers in power, who also embezzle a lot of money away.

· The drug trade. Neild suggests that international law and national laws in rich countries that prohibit drugs may serve to “produce a scarcity value irresistible to producers, smugglers and dealers.” Governments and civil society in the third world are often “undermined, sometimes destroyed” by the violence and corruption that goes with the drug trade. “This is probably the most important way in which the policies of rich countries foster corruption and violence.
· Legalizing drugs, a system of taxation and regulation, comparable to that applied to tobacco and alcohol might do more to reduce corruption in the world
International institutions, such as the United Nations and World Bank have also recently come under criticism for corruption, ironically while presenting themselves in the forefront fighting against corruption.
One of the pillars of democracy is transparency; knowing what goes on in society and being able to make informed decisions should improve participation and also check unaccountability.
Poverty and Corruption he links between corruption and poverty affect both individuals and businesses, and they run in both directions: poverty invites corruption, while corruption deepens poverty. Corruption both causes and thrives upon weaknesses in key economic, political and social institutions. It is a form of self-serving influence akin to a heavily regressive tax, benefiting the haves at the expense of the have-nots.
What is corruption?
Corruption means any abuse of a position of trust in order to gain an undue advantage. This involves the conduct of both sides: that of the person who abuses his position of trust as well as that of the person who seeks to gain an undue advantage by this abuse.
Corruption exists everywhere. The causes might differ, however, whether corruption results from a need, a culture or simply from an opportunity too tempting not to exploit, it influences the way we deal with it - or don’t deal with it.
Swedish International Development Cooperation Agency (SIDA) defines corruption in development co-operations as 'when institutions, organisations, companies or individuals profit inappropriately from their position in the operations and thereby cause damage or loss. This includes giving and receiving bribes, extortion, favouritism and nepotism, embezzlement, fraud, conflict of interest, and illegal monetary contributions to political parties.'
Corruption is a broad term covering a wide range of misuse of entrusted funds and power for privat gain: Theft, fraud, nepotism, abuse of power etc. A corrupt act is often - but not necessarily - illegal. In handling corruption you will often face a gray zones and dilemmas
In the 2010 Corruption Perceptions Index, issued by the anti-corruption organisation Transparency International, Denmark, New Zealand and Singapore was top of the list. Kenya, Cambodia and Russia ranked 154th. Somalia was bottum of the list as the World's most corrupt country. Causes of corruption;
People with pitifully low wages come to feel that they have no option. They have to demand bribes if they want to make a decent living. And when those who extort bribes or pay them to gain an unfair advantage go unpunished, few are prepared to swim against the tide.
The second stem from the nature of government itself: The concentration of economic and political power, the institution of one-party state systems which lack accountability, and the muzzling of the press to expose corruption and wrongdoing. Though corruption exists in all countries, in this peculiar system, public officials can use their office to amass wealth with impunity.
*financial crisis, economic downfall and increase of turmoil in the country
*poverty and deterioration of order in the country.
P&C
Corruption and Poverty
Corruption and Poor Governance are two of the biggest barriers to ending extreme poverty and stand in the way of progress in the development of all areas mentioned here; preventing funds reaching healthcare and education, limiting individuals abilities to access jobs and social benefits, corroding systems of law and stopping aid working effectively in the poorest parts of the world. Corruption happens in developed countries as well as the least developed - but corruption in vulnerable communities destroys lives and stops progress.
Corruption takes many forms. It could be a bribe that must be paid to access basic rights such as food, education, movement or healthcare, it can take the form of discrimination by making certain services only available to a limited group of people, or it could take the form of commercial or political manipulation to benefit a company or individual unfairly. In all and every case, corruption destroys communities, undermines trust in institutions and the law, and strips ordinary people of opportunities they would have had otherwise: jobs, funds, social security, movemment and lawful representation.
Corruption affects the poor directly since it increases the price for public services, lowers its quality and often restricts poor people’s access to water, education, health care and many other key services. It also distorts poor people’s relationships with and trust for public officials, the police and people in authority who extort bribes from them.
Corruption thrives in an environment where power of individual members of society measured in terms of access to people in power and financial resources supersedes the rule of law. The poor lack power and thus lack opportunity to “make it” in such a society. They are more vulnerable to extortion and cannot use corruption in their favor.But corruption also hurts the poor indirectly because corruption is an impediment to economic growth, reinforces inequality, distorts public expenditure allocation and through many other channels is an obstacle to poverty alleviation.Corruption eats into an already tight budget and extra expenditures mean cuts in other basic needs areas. Empirical analysis has shown that the poor pay a higher share of their income on bribes than the rich. The burden corruption places on the poor gets aggravated by the fact that they are more dependent upon public services than the rich. The poor simply cannot afford using private hospitals or private schools and therefore are more vulnerable to the demands for “grease money”.
Poor people’s lack of power also stems from a lack of legal recourse and representation. Property rights are often not well established and access to courts depends on the power of the purse. Not having the means to bribe the judge often results in losing a case. In a country with a corrupt justice system, justice becomes a matter of negotiating a price, much to the advantage of the rich and powerful who have virtually no limits imposed on their actions.
Corruption also feeds inequality. Corruption, income inequality, and povertYCorruption can affect income inequality and poverty through various channels,including overall growth, biased tax systems, and poor targeting of social programsas well as through its impact on asset ownership, human capital formation, educationInequalities, and uncertainty in factor accumulation.
Corruption can lead to tax evasion, poor tax administration, and exemptions thatdisproportionately favor the well-connected and wealthy population groups. Thiscan reduce the tax base and the progressivity of the tax system, possibly leading toincreased income inequality.