Corruption in Global Economies”

In: Philosophy and Psychology

Submitted By zwannah
Words 2536
Pages 11
Final Paper
“Corruption In global Economies”

Submitted to:

Dr. Bernard Walker

PHI421: Applying Ethics to Organization

March 11, 2009

Submitted by:

Paleh Boye-Weah

ID Number: 721260

Cohort: BHE-07

Corruption, according to Rose-Ackerman is a “symptom that something has gone wrong in the management of the state” (Rose-Ackerman, 1999, pg. 9) Corruption rains from top government officials to civil servants and citizens. It causes high level of poverty, as wealth is not equally distributed amongst the people of the nation. Corruption due to exploitation of a country’s natural resources or human labor causes limits on investment and others to suffer as a result of poor circulation of public wealth, and these unethical practices leads to a hurting economy. “The number and variety of countries suffering corruptions scandals in recent years underscore the fact that corruption differs widely in its forms, pervasiveness and consequences”. (Elliott, 1996, Pg.1) Corruption in third world countries reduces economic growth, slows down economic development, and there may also be less severity in developed countries as many may not feel the glitch of corrupt officials or any effect as to whether it is actually occurring. It also benefits the few at the expense of the many; it delays and distorts economic development, preempts basic rights and due process, and diverts services, international aid and the whole economic. (Johnston, 2005, pg. 1)

Corruption on the other hand is a complex issue that existed long ago and one that cannot be resolved easily especially in third world countries where it is used as a means of survival for so many. Most often public official’s benefits from corruption and as such private entity are willing to pay the excess cost to get faster and efficient services. However the public official receiving the benefit sees…...

Similar Documents

The Economy of Ukraine and Ukraine in the Global Economy

...The economy of Ukraine and Ukraine in the global economy Petrusha Helena Ukraine’s economy has a great potential to perform successful in the world. It can be characterized by such strong sides: - well educated labour force, - large domestic market, - well developed industrial base, - access to a variety of resources, including some of Europe’s best best agriculture land, significant coal and some oil and gas reserves, - strategic location connecting Europe, Russia and Asian markets. Nevertheless, Ukraine ended up among the least successful transition economies. The reasons for such a poor performance are different, but we should emphasize on the weaknesses deriving from overcentralised command economy during the Soviet period. I’d like to draw your attention to the Ukraine economy past in order to understand its current situation. Large and often inefficient state-owned factories, enterprises and collective farms wasted resources and emphasized quantity over quality. Prices were fixed and consumer goods were often in short supply. Excessive spending on the military hurt the civilian economy. For the last decades Ukraine is moving to market economy, where the forces of supply and demand and private ownership guide the allocation of resources. The transition to market economy is politically and socially difficult because of experience of rising inflation, unemployment and economic uncertainty before the long term benefits of market economy. The next point of......

Words: 658 - Pages: 3

Global Political Economy of Pakistan

...PAKISTAN’S ECONOMIC FUTURE DR. ISHRAT HUSAIN Economists have a very poor track record of forecasting the future as the dynamic interactions between complex variables, an imperfect understanding of the non-economic factors and the occurrence of unanticipated exogenous shocks turn their judgements into hit and miss episodes. Despite these weaknesses economic forecasting flourishes as a discipline and the economists show indomitable courage to sketch out their scenarios of an uncertain and unknown future. This article therefore examines the past developments, current trends of Pakistani economy and the future global and regional outlook and builds the most likely scenario for the medium term economic prospects of the country (next 10 years or so) and then reviews the downside risks and upside gains around this scenario. 2. Pakistan is still a low income country and it would require at least next 14 years of 7 percent average annual GDP growth to double its per-capita income to around $ 2000 (official exchange rate conversion). This growth rate should also be able to reduce the incidence of poverty by half and meet the Millennium Development Goal. 3. It is easy to make this normative statement but more difficult question is how can this growth rate be achieved on a sustained basis? The prophets of doom and gloom in Pakistan (and there are plenty of them) who are constantly polluting the minds of our younger generation and turning them into cynics at very early age......

Words: 2214 - Pages: 9

Impact of Mistrust on the Global Economy

...Impact of mistrust on the global economy Name: Baihan Jiang Student Number: 40051637 Date: April 26, 2013 Alone with the continuous development on the global economy in some developing countries, the country has the ability to form the overall vigor but it fails to have the corresponding improvement in the social life. As an important part in the society, the social trust has had a crisis. To solve this problem, the basic way is to use a more fair system arrangement and social guarantee to reduce and eliminate the behavior of its own security and interest security. Social trust and social credit as an important social capital and social resources focus on it for the role of social intercourse activities. Realistic experience shows people that mutual trust plays a significant role in the communication of social exchange activities. The society is a community of people and its existence need certain trust. This can be investigated from two dimensions; the first one is the transverse dimension of the plane dimension. Society is made up by numbers of people, if the society is lack of trust of the confidence is too low, it will be very difficult to communicate among people. Generally, there is a certain amount of trust existing in any society; the difference is the extent of the trust and level. The second one is the vertical of longitudinal dimension. Because of the social division of labor, there is a certain class or grade difference between different people.......

Words: 1774 - Pages: 8

Issues in Global Economy the developing countries. In this journal, James analysed the relationships and effects between the developing countries’ economy development and the information technology. Firstly, from James (2001) point of view, there is a ‘cumulative causation’between foreign direct investment and exports and economic growth. Heclaimed that foreign direct investment (FDI) had a huge influence on the export performance of the developing countries, the degree of exports stimulates economy growth thus attract more FDI. There are some evidences exist to prove his claim. China isone of the good examplesto indicate that. Song and Zhang (2001) stated that there was a strong link between foreign direct investment and exports in China. Exports which generated by FDI had attracted more FDI into China. It also provided the evidence that only 1 percentage of FDI level changed in 2000 was related to 0.29 percentages rise in exports in 2001 (Song and Zhang). Moreover, foreign investment has played a vital role in both China’s economy and fast growth (Whalley&Xin, 2010). According according to Whalley and Xin (2010), their research result has shown that ‘China’s growth rate may have been around 3.4 percentage points lower in the past few years’ without FDI(Whalley&Xin, 2010). While on the other hand, this ‘cumulative causation’ application may be affected by current global situation. The export-led growth strategy for those least developed countries seem to be not so effective in recent years. ......

Words: 1140 - Pages: 5

Marketing in a Global Economy

...Marketing in a Global Economy Assignment BUS 620 Managerial Marketing Timothy Malone December 23, 2013 Marketing in a Global Economy Assignment Italy represents the height of the coffee culture, “the gold standard against which all others are measured” (Faris, 2012). For Italians, their coffee is a cultural symbol. If Starbucks is serious about venturing into Italy, then they have a lot of work to do in order to promote their brand. However, the longer they stay out of the Italian market, the harder it will be for Starbucks to break ground. Global markets represent an opportunity for growth and development among many companies around the world. It “requires companies to extend and leverage their marketing skills, product-based competencies, and brand-specific advantages to adapt to consumer preferences in different parts of the world” (Finch, 2012, p. 392). Starbucks is a prime example of a company that has become successful in conducting business within the global economy. After an inspiring trip to Milan in 1983, Howard Schultz came up with the idea of Starbucks. With his new vision, Schultz believed that coffee could be more than just a drink; it could become an “experience” (Faris, 2012). Now, the once little Seattle based company is pushing into new territories faster than it can come up with a new coffee variation. Thompson and Arsel state, “The Starbucks revolution transformed gourmet coffee from a yuppie status symbol into a mainstream consumer......

Words: 699 - Pages: 3

Ethical Issues in a Global Economy

...Ethical Issues in the Global Economy The business world is changing. It is evolving into a fully integrated global economy, where corporations and their managers are faced with moral dilemmas and ethical questions as they expand their operations on a worldwide scale. As raw material sources, supply chains, and production facilities are increasingly being built and moved overseas, businesses are beginning to uncover new issues which complicate their processes and operations. Gray areas are developing relating to humanitarian and labor issues, environmental concerns, and governmental regulations that challenge even the most socially responsible and forward thinking companies. At the same time, citizens and shareholders alike are challenging global firms to address the Triple Bottom Line approach, an approach that equally emphasizes the importance of people, the planet, and profits in measuring the success of any given firm. Companies are still expected to succeed financially, while simultaneously taking care of the environment, their employees, and the communities in which they operate. In order to gain insight into this situation, one may consider The Travels Of A T-Shirt In The Global Economy by Pietra Rivoli. In this case study of a truly global product, Rivoli explores the path that a simple cotton t-shirt follows from raw material, to finished product, and finally on to its own secondary market. She explores the people behind each step in the process, the......

Words: 2900 - Pages: 12

Global Economy

...The world economy has changed greatly since the beginning of man. As a species we evolved each generation socially and especially economically. In the caveman days we traded basic things for food. An example of a trade would be wood for food. As we evolved we then developed a currency system trading gold or silver for items. Today the whole globe has a base economy and every nation is involved in the world economy. Economic globalization refers to the intensification and stretching of economic interrelations across the globe. Gigantic flows of capital and technology have stimulated trade in goods and services. Markets have extended their reach around the world, in the process creating new linkages among national economies. The world economy was developed by the emergence of the global economic order, internationalization of trade and finance, the power of transnational corporations, and the enhanced role of international economic institutions. The economy of the world really started to become internationalized after World War 2. There was an economic conference held in New England to help develop the new international economic order. Under the leadership of the United States and Great Britain, the major economical powers of the time in the north, both countries decided to reverse their protectionist policies of the interwar period. The countries at the meeting all arrived at a firm commitment to expand international trade, the participants at the conference also agreed......

Words: 819 - Pages: 4

Sizing Up the Global Economy

...Investment Outlook from Bill Gross September 2015 Sizing Up the Global Economy Size does matter you know. There are basketball players, NFL linemen, and the more popular but unmentionable allusion to the bedroom that makes my point, although the older one gets, the more irrelevant playing basketball and football become, if you get my drift. More interesting to me than any of the above, however, is the application of size and its relevance to the animal kingdom. Randy Newman raised eyebrows and a goodly number of hackles three decades ago with his “Short People” ditty – “Short people got no reason, short people got no reason to live” he crooned, and the vertically disadvantaged got mad and the tall people laughed and the world went about its business of favoring size – in this case – when measured from head to toe. Mr. Newman’s parody was so radical that I suspect he was asking us to think, as opposed to expressing an opinion, and if so, he was and may still be more of a Buddhist than a bigot. But I speak not about the size of people here – but to animals of the more ordinary kind. I am not what you might think of as an animal lover. I’ve had some great dogs and a rather well publicized cat by the name of “Bob”, but on the whole I’ve become more of a life respecter than an inveterate petter of felines or canines. But there’s something about the size of a living thing that increases or diminishes my sense of caring and I’m not sure why that should...

Words: 1890 - Pages: 8

Corruption in the South African Economy

...IMPLICATIONS AND EFFECTS OF CORRUPTION IN THE SOUTH AFRICAN ECONOMY AND HOW IT CAN BE MANAGED About the writer: Tyson Thamsanqa Sibanda Rosebank College South Africa: Bachelor of Business Administration 3 (2015) Contact details; 0027786500000 / 0027815993434 BACKGROUND AND ORIGIN Corruption in South Africa has been so widespread that, unless it is decisively tackled in this presidential term, there is a real danger that it will become embedded as a ‘normal’ aspect of life in our country. Once it becomes part of the ‘culture’ of our society, it will be almost unmanageable to uproot. Corruption is generally defined as the abuse of public office for private gain. It usually comes in two forms. Firstly, the alleged ‘big-time’ corruption which take place when public officials bend the rules to channel patronage to relatives, friends and associates, or accept bribes; as well when private agents bribe public officials to give them exclusive advantages or privileges. Secondly, there is the quiet corruption, which occurs when public servants purposefully neglect their duties to provide public services or goods. Quiet corruption may not involve an exchange of money, but involves providers of public services such as teachers, nurses or other government officials, twisting the rules for their own private welfares. This includes, for example, public servants, such as a minister or nurses not turning up for work when they should. Big-time corruption taking place......

Words: 5145 - Pages: 21

Global Economy

...THE U. S. IN A GLOBAL ECONOMY >The chapter provides background for ongoing changes in the American economy that link it increasingly to economic events in the rest of the world Increasing Importance of Trade >[Instructor’s note: Trade patterns can be divided into two major types of exchanges: merchandise meaning goods which are tangible such as cars and chocolates and services meaning items which are intangible such as insurance or financial products] >Figure 1.1 shows the trend in U. S. merchandise trade flows from 1869 to 2007; exports and imports were constant at about 7% of GDP until falling during the post-World War I decades but recovered to historic rates in the 1950s until taking off at a rapid pace of increase in the 1970s -According to the Council of Economic Advisors merchandise exports were $1.3 billion or 9.1 % of GDP and merchandise imports were $2.1 billion or 14.8 % of GDP in 2008 -[Instructor’s note: according to the Bureau of Economic Analysis the merchandise exports and imports were 8.7% and 13.3% of GDP in 2010] -Two recent divergences between the two streams of exports and imports as a percentage of GDP were the post world war II years when the American economy ran a trade surplus vastly out-producing the rest of the world and the period since 1980 when we have run a persistent trade deficit in merchandise imports >The trend in both percentages has been steadily upward since 1970 marking the pace of globalization >Although some economists......

Words: 1117 - Pages: 5

Kazakhstan's Economy in Global Market

...Kazakhstan`s place in Global Economy Dinara Zhangabayeva 145075   International business (MGMT 550)   Submitted to ASSOC. PROF. DR. AKER SULE   28- 12- 2015 Introduction At the turn of 20-21 centuries, the world economy has entered a new phase of internationalization of economic life, which is defined as globalization. Globalization of the world economy as multidimensional process manifests itself in substantially all major aspects of modern economic life. The world is getting united through globalization. This is happening because of the technological advancements in the recent decades and the global organizations that made trading and capital movements easier. Regulations from various countries supported free trade, which made the countries more integrated with each other. Various entities were created to facilitate the trade between countries and to reach a more global economy (World Trade Organization, International Monetary Funds, The World Bank, European Union…). Efforts were made to get the financial markets integrated between each other as we have indexes for the whole world such as BBC Global 30, S&P global 100 … etc. and indexes for the European union like FTSE Euro 100, FTSE Euro Top 100… etc. The independence allowed Kazakhstan to establish economic relations with many developed and developing countries, to rebuild relationships with former partners and to advance on the path of integration into the world market. The liberalization of foreign......

Words: 3331 - Pages: 14

Global Economy

...1) GDP : A a. Consumption ( C ) is the largest component of GDP. b. In short term, the Consumption variation might be responsible for the fluctuations the economy suffers. c.  G is the spending the overall taxes, common goods of the citizens of a given country. B a. The GDP is more steady, the industrial production fluctuates more. C a. GDP is important indicator of the health of a given economy, it serves on an internal level to monitor the effectiveness of spendings etc… and on an external level to choose good economic partners. It is also used to forecast and take decisions based on these forecast concerning to future needed investments. D a. GDP is about nationals and foreigners within the boundaries of a country. GNP is about citizens of a given country wherever they producing and consumming geographically. E a. The major component determining long run economic growth would be the deflator which takes into consideration the inflation/deflation, so mastering the inflation rate of a given economy makes its growth more steady and less prone to collapse. 2) Unemployment rate d. In economics Okun’s law states that it is empirically observed that 1% increase in unemployment rate will impact the GDP by -2% compared to the potential GDP. e. This relationship exists because GDP is directly linked to consumption which makes roughly 70% of it, and unemployed have less money to spend, so a lower consumption. 3)......

Words: 504 - Pages: 3

Global Economy

...Introduction This report will examine the world economy in general these issues. In this way, people can learn basic information about the world economy. Also global economy can be seen as the economy of global society and national economies – as economies of local societies, making the global one. It can be evaluated in various kinds of ways. It is inseparable from the geography and ecology of Earth, and is therefore something of a misnomer, since, while definitions and representations of the "world economy" vary widely, they must at a minimum exclude any consideration of resources or value based outside of the Earth. This report would talk about several definition would used during the world economy. Finding 1. Free trade Free trade is the interchange of goods and services (but not of capital or labor) unhindered by high tariffs, nontariff barriers (such as quotas), and onerous or unilateral requirements or processes (businessdictionary, 2015). The North American Free Trade Agreement is an agreement signed by Canada, Mexico, and the United States, creating a trilateral rules-based trade bloc in North America. U.S. exports to Canada and Mexico support more than three million American jobs and U.S. trade with NAFTA partners has unlocked opportunity for millions of Americans by supporting Made-in-America jobs and exports(businessdictionary, 2015). As the U.S.’ two largest export markets, Canada and Mexico buy more Made-in-America goods and services than......

Words: 3862 - Pages: 16

Global Economy

...The heavily issue of globalization is made extremely clear in the travels of a T-shirt in the global economy. Pietra Rivoli talks about the politics and human element behind globalization by telling her life story of her t-shirt. Through the story of her t-shirt, Revoli shows how supportive globalization often reduce and unrecognizable issues behind international trade environmental problems caused by factories and industries. Pollution is the introduction of harmful impurities, impure, unclean and polluted substance into the environment. Its existence is created and mostly caused by human actions, and the outcome of this situation can end up in natural disasters. Industrial waste poured into rivers have led to dramatic changes and problems in our societies. Most people use to swim and have a good time in river in their neighborhood, but they cant do all of this again because the water have been polluted with poisonous chemicals wasted in the river. Big companies and industries pour unwanted, poisonous chemicals into rivers to save money for the company. As a result of this, the chemicals end up in neighborhoods and the water starts to smell, block up nose and spots on both adults and children. Employees who work in theses companies are exposed to all kinds of chemicals and the place adhesive smell horrible like burned plastic, which end up in bleeding of noise. The workers who work at these companies sometimes even end up losing their jobs because they cant......

Words: 582 - Pages: 3

The Global Economy

...THE GLOBAL ECONOMY FEATURES OF THE GLOBAL ECONOMY Nature of the global economy and globalisation The global economy/world economy consists of all the countries of the world that contribute to gross world product through the production of goods and services. It is often discussed in relation to the increased integration of economies. Gross world product (GWP)/world GDP is the sum of the total output of goods and services by all economies over a given period of time. It is measured at purchasing power parities (PPP) which adjust exchange rates to equalise the price of identical goods and services across economies. Globalisation is the increasing integration of countries and their economies, resulting in the increased impact of international influences on all aspects of life and economic activity. The economic indicators of globalisation include: * international trade flows * international investment and transfers of technology * international finance * international labour markets Trade: * Greater growth but with greater volatility than GWP * Growth of world trade has been around twice growth of real GWP since the 1970s, but contractions in the growth of world trade have also been more severe (World Economic Outlook, IMF, 2009) * Greater growth in developing and emerging economies * Exports from developing and emerging economies grew 9.8% from 2002 to 2008 cf. 5.2% growth in developed......

Words: 306 - Pages: 2