1. IMPACTS/EFFECTS OF
CORRUPTION
ANTI CORRUPTION
AUTHOR BY:
BENEDICT TIMOTHI
SITI YAUMILIA SALSA
SYIFA FAUZIAH MANSUR

2. WHAT IS CORRUPTION?
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Definition of Corruption
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Corruption is dishonest actions that destroys people's trust in the person or group, like the news of corruption in how your
bank is run, that makes you close your account and invest your money somewhere else.
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The noun corruption comes from Latin — com, or "with, together," and rumpere, meaning "to break." Corruption breaks your
trustworthiness, your good reputation with others, like the news of corruption in the mayor's office that shocked everyone.
When you corrupt something that is pure or honest, you take away those qualities. That's why "corruption of minors" is a
serious offense in our legal system.
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Kamus Besar Bahasa Indonesia (KBBI) defines corruption as ― misappropriation or misuse of state funds
(companies, etc.) for personal gain or other person
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Transparency International (TI) defines corruption as ― ― The misuse of entrusted power for private gain‖
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Oxford Dictionary defines corruption as ― ―Perversion or destruction of integrity in the discharge of public
duties by bribery or favour.‖
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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. (www.cisu.dk/Default.aspx?ID=23469)
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dr. Petrus van Duyne defines corruption as ― Corruption is an improbity or decay in the decision-making
process in which a decision-maker consents to deviate or demands deviation from the criterion which should
rule his or her decision-making, in exchange for a reward or for the promise or expectation of a reward, while
these motives influencing his or her decision-making cannot be part of the justification of the decision.

3. KIND OF CORRUPTION
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AUTOGENIC
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DEFENSIVE
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No direct transfer of money. Just preferential treatment to relatives and friends.
SUPPORTIVE
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For future reward and no direct favor in present.
NEPOTISTIC
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This is compensation in exchange for services.
INVESTIVE
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Compulsive in nature and victims pay bribes in self defense.
EXTORTIVE
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Self generating and involves only perpetrator
It supports the existing corrupt system.
TRANSACTIVE
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Involves both parties and the advantage is for both.

4. CATEGORIES OF CORRUPTION
 INDIVIDUAL CORRUPTION
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Only a single person or official is involved in practicing bribing. This type is
corruption can be seen in government offices and institutions.
GROUP CORRUPTION
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A group of people work as unit to practice bribing.

5. CAUSES OF CORRUPTION
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Absolute authority
Ineffective/antiquated and
overburdened legal system
Ineffective anti-corruption
mechanisms
In adequate enforcement
Lack of employment
Privatization, Liberalization and
Globalization
Diminishing values in the society.
Diminishing patriotism.
Lack of awareness.
Low literacy rate.
Lack of effective management.
Lack of economic stability.
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Lack of effective political leadership.
Lack of effective management and
organisation.
Lack of economical stability.
Lack of support.
Lack of values.
Lack of love for country
Lack of satisfaction
Lack of autonomy
Lack of good control and vigilance
Lack of good remuneration
Lack of employment.
Lack of seats and educational
institutions
Etc.

6. EFFECTS/IMPACTS
ON POLITICS, ADMINISTRATION, AND INSTITUTIONS
INTRODUCTION
 In political sphere, corruption impedes democracy and the
rule of law. In a democratic system, public institutions and
offices may lose their legitimacy when they misuse their
power for private interest. Corruption may also result in
negative consequences such as encoring cynicism and
reducing interest of political participation , political
instability , reducing political competition, reducing the
transparency of political decision making, distorting
political development and sustaining political activity based
on patronage, clientelism and money, etc.

7. ECONOMIC EFFECT
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In the private sector, corruption increases the cost of business through the price of illicit
payments themselves, the management cost of negotiating with officials and the risk of
breached agreements or detection. Although some claim corruption reduces costs by cutting
bureaucracy, the availability of bribes can also induce officials to contrive new rules and delays. Openly
removing costly and lengthy regulations are better than covertly allowing them to be bypassed by
using bribes. Where corruption inflates the cost of business, it also distorts the playing field, shielding
firms with connections from competition and thereby sustaining inefficient firms.
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Corruption also generates economic distortions in the public sector by diverting public
investment into capital projects where bribes and kickbacks are more plentiful. Officials
may increase the technical complexity of public sector projects to conceal or pave the way for such
dealings, thus further distorting investment. Corruption also lowers compliance with construction,
environmental, or other regulations, reduces the quality of government services and infrastructure,
and increases budgetary pressures on government.
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The economic effects of corruption can be categorized as minor and major. However, both in one way
or the other have serious impact on the individual community and country. First and foremost,
corruption leads to the depletion of national wealth. It is often responsible for increased costs
of goods and services, the funneling of scarce public resources to uneconomic high profile projects at
the expense of the much needed projects such as schools, hospitals and roads, or the supply of potable
water, diversion and misallocation of resources, conversion of public wealth to private and personal
property, inflation, imbalanced economic development, weakling work ethics and professionalism,
hindrance of the development of fair in market structures and unhealthy competition there by
deterring competition. Large scale corruption hurts the economy and impoverishes entire population.

8. ENVIRONMENTAL AND SOCIAL EFFECT
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Corruption facilitates environmental destruction. Corrupt countries may formally have
legislation to protect the environment, it cannot be enforced if officials can easily be bribed. The
same applies to social rights worker protection, unionization prevention, and child labor.
Violation of these laws rights enables corrupt countries to gain illegitimate economic advantage
in the international market.
The Nobel Prize-winning economist Amartya Sen has observed that "there is no such thing as
an apolitical food problem." While drought and other naturally occurring events may
trigger famine conditions, it is government action or inaction that determines its severity, and
often even whether or not a famine will occur. Governments with strong tendencies
towards kleptocracy can undermine food security even when harvests are good. Officials often
steal state property. In Bihar, India, more than 80% of the subsidized food aid to poor is stolen
by corrupt officials. Similarly, food aid is often robbed at gunpoint by governments,
criminals, and warlords alike, and sold for a profit. The 20th century is full of many
examples of governments undermining the food security of their own nations – sometimes
intentionally.
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In Social sphere, corruption discourages people to work together for the common
good. Frustration and general apathy among the public result in a weak civil society.
Demanding and paying bribes becomes the tradition. It also results in social
inequality and widened gap between the rich and poor, civil strive, increased
poverty and lack of basic needs like food, water and drugs, jealousy and hatred
and insecurity.

9. Effects on Humanitarian Aid
 The scale of humanitarian aid to the poor and unstable regions of the world grows,
but it is highly vulnerable to corruption, with food aid, construction and other highly
valued assistance as the most at risk. Food aid can be directly and physically
diverted from its intended destination, or indirectly through the
manipulation of assessments, targeting, registration and distributions
to favour certain groups or individuals. Elsewhere, in construction and
shelter, there are numerous opportunities for diversion and profit through
substandard workmanship, kickbacks for contracts and favouritism in the provision
of valuable shelter material. Thus while humanitarian aid agencies are usually most
concerned about aid being diverted by including too many, recipients themselves
are most concerned about exclusion. Access to aid may be limited to those with
connections, to those who pay bribes or are forced to give sexual favours.

10. Other areas:
health, public safety, education, trade unions, etc.
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Corruption is not specific to poor, developing, or transition countries. In western countries, cases of bribery and other
forms of corruption in all possible fields exist: under-the-table payments made to reputed surgeons by patients
attempting to be on top of the list of forthcoming surgeries, bribes paid by suppliers to the automotive industry in order
to sell low-quality connectors used for instance in safety equipment such as airbags, bribes paid by suppliers to
manufacturers of defibrillators (to sell low-quality capacitors), contributions paid by wealthy parents to the "social and
culture fund" of a prestigious university in exchange for it to accept their children, bribes paid to obtain diplomas,
financial and other advantages granted to unionists by members of the executive board of a car manufacturer in
exchange for employer-friendly positions and votes, etc. Examples are endless. These various manifestations of
corruption can ultimately present a danger for the public health; they can discredit specific, essential institutions or
social relationships.
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Corruption can also affect the various components of sports activities (referees, players, medical and laboratory staff
involved in anti-doping controls, members of national sport federation and international committees deciding about the
allocation of contracts and competition places).
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Cases exist against (members of) various types of non-profit and non-government organisations, as well as religious
organisations.
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Ultimately, the distinction between public and private sector corruption sometimes appears rather artificial,
and national anti-corruption initiatives may need to avoid legal and other loop holes in the coverage of the instruments.
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In our society, the impact of corruption is often manifested through political intolerance, problems of accountability
and transparency to the public, low level of democratic culture, principles of consultation and participation dialogue
among others.

11. IMPACTS OF CORRUPTION
,And so much more…

12. Sources
https://www.vocabulary.com/dictionary/corruption
http://www.slideshare.net/indranshgupta/corruption-15501320?from_search=9
http://en.wikipedia.org/wiki/Political_corruption
http://www.ritayuniarti.com/dampak-korupsi-bagi-negara-indonesia/
http://fahri-3192.blogspot.com/2010/10/dampak-negatif-yang-ditimbulkan-dari_31.html
http://transparencyethiopia.org/index.php?option=com_content&view=article&id=17%3A
what-are-the-effects-of-corruption&catid=7%3Afaq&Itemid=7&lang=en
www.cisu.dk/Default.aspx?ID=23469
http://kbbi.web.id/korupsi

13. Thank You for Your Attention