Corruption Culture and Markets

Corruption refers to the abuse of power or position by government officials in order to attain illegitimate personal gain. Corruption is a complex political, social and economic phenomenon that affects all nations since it undermines democratic institutions and slows down economic development since investors shy away from investing in countries that are deemed to be corrupt. Corruption occurs in the forms of bribery, nepotism, extortion, patronage, embezzlement and influence peddling. Corruption is closely linked to organized crimes such as drug trafficking, terrorism and money laundering. Corruption is perceived to be widespread in some nations than others due to the historical, cultural and differing levels of economic development. Countries with more developed economies and histories of British rule are perceived to be less corrupt due to traditions and values of democracy and good governance inherited from Britain rule.
The definition and legislation on corruption differ across nations since there are different sanctions and penalties for engaging in corruption. Some countries define corruption as the bribery of public officials while others define corruption as the soliciting and acceptance of gifts. In other nations, corruption is broadly defined as the abuse of public office for personal gain while others define corruption as the possession of unexplained wealth.
In many nations, civil and criminal law provide for provisions that determine corruption-related offenses and enforcement measures such as penalties and jail terms for engaging in corrupt activities. In other countries such as emerging markets, there are anti-corruption agencies that are responsible for the investigation of corruption-related offenses and making recommendations for the prosecution of the offenders. Active and passive corrupt practices are criminal in countries like Singapore, China, and Hong Kong and bribery of public officials in&nbsp.criminal offense.&nbsp.