Corruption

Corruption is the abuse of entrusted power for private gain. It can take many forms, including bribery, embezzlement, nepotism, cronyism, extortion, kickbacks, illicit lobbying, and fraud. It can occur in both public and private sectors and at all levels of government, business, and civil society. Cases range from petty corruption in daily transactions to grand corruption involving high-level officials and large sums, and systemic corruption that pervades institutions.

Causes include weak rule of law, lack of transparency, insufficient accountability, concentrated power, and incentives that reward short-term gains. It is fostered by opaque procurement, discretionary regulatory powers, unequal information, and insufficient protection for whistleblowers.

Effects are broad: distorted resource allocation, reduced public service quality, higher costs, suppressed investment, weakened trust in institutions, increased inequality, and impeded development and democracy.

Measurement often uses perception-based indexes and objective indicators, such as the frequency of violations, procurement irregularities, and asset disclosures. Anti-corruption efforts focus on prevention, detection, and punishment: transparent budgeting and procurement, independent auditing, robust conflict-of-interest rules, strong judiciary, independent media, civil society oversight, and protections for whistleblowers. International instruments encourage cooperation and standardize best practices.

Policy challenges include balancing enforcement with legitimate discretion, avoiding regime instability, and ensuring that reforms do not impose excessive costs. Successful strategies typically combine legal reforms with institutional capacity building, cultural change, and sustained political will.