Bribery and Corruption

Discuss with your partner what you think the words below mean.

Corruption bribes rewards corporate hospitality bonuses perks tips

Activity 2

Match the definitions below to the words in Activity 1.

1. The often lavish entertainment of customers, suppliers, etc. E.g: Taking important clients to a sporting event such as a football match or Formula 1 race and entertaining them generously.

2. A small quantity of money given to someone after they have served you in some way. E.g: a taxi driver, a hairdresser, a waiter.

A gift you receive for having done something especially well.

4. A gift which is offered in order to secure dishonest help or favouritism. E.g. Giving your teacher money to ensure that you pass the next English test!

5. Something your employer gives you as part of the job. E.g: a company car, health insurance, etc.

A quantity of money which is given to an employee for performing well at their job.

7. Using one’s power or position dishonestly in order to benefit personally.

Activity 3

Read the following questions and use them to start a conversation with your partner.

1. Which areas do you think are the most corrupt (a) in your country (b) in other countries? E.g. Politics, education, construction, health, agriculture, the arms industry, transport, etc.

2. What are the effects of corruption on society?

3. Who is more to blame – the person who offers a bribe or the person who takes it?

4. Can corruption ever benefit a country?

5. How does corruption affect (a) people’s lives in general (b) your life in particular?

6. What can be done to reduce or stop corruption?

7. How should corrupt officials be dealt with when they are found out?

8. Why are some countries more corrupt than others?

9. Is corruption more prevalent in democracies or autocracies? Why is this so?

10.What effect will globalisation have on corruption, do you think?

11.Is it OK to bribe children? Did your parents bribe you as a child?/Do you bribe your children? 12.Can corruption ever be wiped out or is it part of human nature?

Activity 4

Answer the questions below.

1. What reasons are given for bribery and corruption occurring?

2. Which anti-corruption organisation is mentioned?

3. Two types of bribery are mentioned. What are they?

4. What is the answer to the Quick Quiz?

Bribery and Corruption

What exactly is corruption?
Various authorities offer definitions of corruption. Transparency International (an organization committed to fighting corruption all over the world) defines it as ‘the misuse of entrusted power for private gain’. The Oxford English Dictionary defines it as a willingness ‘to act dishonestly in return for money or personal gain’. However, the fact that there are different types of corruption makes it difficult to arrive at a single all-encompassing definition. There is a difference between bribing an official to do something legal (e.g. bribing a civil servant to speed up the process of acquiring a document of some sort) and bribing an official to do something illegal (e.g. bribing a teacher to give you a good mark in an exam when in fact you didn’t pass).

Why does it happen?
There are various reasons why corruption takes place and takes hold. Sometimes it is due to the fact that officials are simply not paid very much and so they need to supplement their salaries with money from bribes. Sometimes the bureaucratic system is set up in such a way that officials simply refuse to carry out their duties unless they are ‘encouraged’ by being offered bribes. In other cases it is actually part of the tradition and culture of a country to give and receive ‘gifts’ in order to get anything done. In some cases companies from less corrupt countries allegedly engage in bribery in order to do business in countries where corruption is the norm, otherwise they would not be able to operate successfully in those countries. It can be argued that if such companies did not bribe officials in the necessary countries then the economies of those countries would suffer because fewer companies would invest in them, thus making them poorer. On a smaller scale corruption is often just a result of people’s natural desire to ‘beat the system’. Mostly, corruption occurs in environments where it is tolerated and where the temptation is too strong to resist.

How does it affect us?
First and foremost paying bribes costs money, obviously, so it leaves you out of pocket. It can also cost people their health, if they cannot afford to bribe the necessary officials to receive medical treatment, or even, in extreme cases, their freedom or their lives. The economy and infrastructure of the whole country can suffer if officials and politicians are siphoning off funds intended for road-building, new schools and hospitals etc. in an effort to line their own pockets.

How can we fight it?
Obviously, the ordinary person in the street who tolerates a corrupt system would need to make a stand, refuse to pay bribes and blow the whistle on corrupt officials. Easier said than done in many cases! However, there are international organizations who are fighting to reduce corruption on a global level, with some measurable success – Transparency International, for example.
Ultimately, a significant reduction in corruption could be achieved if all sections of society (political, commercial and civil) worked together with common aims to achieve it.

Quick Quiz: Read the clues below and write the solutions on a piece of paper. Then take the first letter of each answer and rearrange them to find the hidden word connected with this Talking Point.

1. Corruption is often just a result of people’s __________ desire to ‘beat the system’.

2. Various authorities offer __________ of corruption.

3. It can also cost people their health, __________ they cannot afford to bribe the necessary officials to receive medical treatment.

4. There are various reasons why corruption takes place and takes __________.

5. __________ said than done in many cases!

6. The fact that there are different types of corruption makes it difficult to arrive at a __________ all-encompassing definition.

7. Corruption __________ in environments where it is tolerated and where the temptation is too strong to resist.

8. Ultimately, a __________ reduction in corruption could be achieved if all sections of society (political, commercial and civil) worked together with common aims to achieve it.

9. In other cases it is actually part of the __________ and culture of a country to give and receive ‘gifts’.

Why do we give bribes?

How long before most Ukrainians stop condoning corruption?

What must be done to combat this scourge?

According to the Kyiv International Institute of Sociology (KMIS), 50 percent of Ukrainians believe that law enforcement agencies, educational establishments, medical institutions, and the judicial authorities are the most corrupt institutions in the country.

Not a single important problem, including enrollment in institutions of higher learning, can be solved without the offer and acceptance of bribes.

The findings of the poll “Corruption in Higher Education,” which was conducted by the Gorshenin Institute this past September, indicate that 63 percent of Ukrainians citizens have given presents or money to lecturers at institutions of higher education during enrolment or the course of studies.

When and how will this situation improve? KMIS’s findings indicate that 65 percent of Ukrainians believe there will be less corruption in Ukraine once citizens learn about their rights and ways to protect them. Experts, however, believe that this problem will disappear only after citizens stop using corruption as a method of self-assertion; when the people in power and the general public start living according to the new rules.

Is it possible to live without offering and accepting bribes? Is Ukraine prepared to live this way? The Day asked its experts to answer these questions.

Dr. Mykola VASKIV, professor at Ivan Ohiienko National University, Kamianets-Podilsky:

If bribery and corruption exist, this means that there are people who need these phenomena, and there are certain prerequisites for them. There are interesting statistics on corruption in various countries. Out of 180 countries, Ukraine traditionally scores 100 something. There is, however, another remarkable index: the three countries with the lowest levels of corruption received 9.3 points on a 10-point scale – in other words, there is a 0.7 level of corruption even in such countries. No country can boast of having completely overcome corruption. This means that the desire to obtain additional funds for a certain illegal bureaucratic transaction is germane to human nature. However, while in some countries such preconditions and manifestations of this reprehensible phenomenon are severely restricted, in other countries no one lifts a finger to change the situation.

What are the causes of bribery in Ukraine? First and foremost, as Russian-speaking citizens put it, “it has come about historically.” Khabar, the Ukrainian word for bribe, is etymologically and essentially an Asian concept that became firmly implanted in our consciousness via Muscovy. Nor was it coincidental that the Ottoman Empire was the world’s only country where the khabar was legal. The only strict requirement was to pay taxes on khabars, on time and in full.

Another reason – which is a consequence of the first one – is the fact that in the Russian empire, and later in the Soviet empire, the concept of law was extremely relative. All decisions depended on bureaucrats. In other words, a bureaucrat’s palm had to be greased. This practice is still very much alive; the higher the bureaucrat’s rank, the freer he feels in dealing with the law. Even the lowest-ranking clerk wants a bribe for something he is bound by law to do.

When the media cover bribery, they lash out most often at educators, doctors, and traffic cops, although it is common knowledge that the fattest envelopes are slipped into pockets in the corridors of power, tax administrations, and so on. There, bribes are given in the thousands and tens of thousands of US dollars and more (definitely not in hryvnias or Russian rubles).

Ten reasons why people pay bribe, and more

Corruption is a crime of calculation, not of passion. If the risk and penalties are high, many wouldn't opt to be corrupt. Here's your guide to understanding corruption!

T R Raghunandan, 08 Jan 2014, Citizen Matters

After a recent discussion on TV, I got the feeling that people hardly know what corruption is and generally share a feeling of despondency and lack of hope about reducing or eliminating it. However, corruption is a systemic failure like many others and can be and has been cured in many countries, and within countries, in many sectors.

1. What is the meaning of corruption?

1.1. The narrow legal meaning of corruption is of Public Servants using the public offices held by them to further their illegal private interests. The Prevention of Corruption Act 1988 does not specifically define the term, but describes several punishable offences that amount to acts of corruption. These fall broadly into two categories, namely, the taking of gratification other than legal remuneration for performance of an official act, and criminal misconduct, which includes abuse of office to deliver a pecuniary advantage to himself or any other person.

1.2. However, the word ‘corruption’ means in common language, much more than bribery. Cor’ in Latin, means ‘completely’ and ‘Rupt’ means ‘ruptured’. Thus wherever there is a complete breakdown of norms it could be described as corruption. For example, there is a lot of corruption in the private sector also, even though private sector corruption is not criminalized in India.

3. Why is corruption harmful?

3.1. We all know that corruption is widespread. Those who pay bribes suffer directly, but even though who are not directly involved in giving or receiving bribes, are indirectly affected by the inefficiencies and inequities that corruption generates. Even those who think they did a smart thing to pay bribes, also suffer in one form or the other, eventually.

3.2. Corruption leads to the following harmful consequences;

(a) Corruption undermines democracy and the rule of law: For instance, bribing of voters leads to the distortion of the electoral process. Bribing of judges leads to wrong decisions and great injustice.

(b) Corruption leads to violation of human rights, For example, bribing of police leads to wrongful confinement and even instances of bad investigation, leading to the escape of criminals from punitive action.

(c) Corruption distorts markets: For example, the cumulative bribes paid by builders for a variety of permissions, can increase the price of a flat by more than 20 percent.

(d) Corruption erodes the quality of life: For example, it is estimated that the bribes paid in BBMP contracts could be as high as 35 percent cumulatively. That is one of the reasons why we have bad quality of roads, buildings and other facilities from the BBMP.

(e) Corruption allows organized crime, terrorism and other threats to human security to flourish: For example, the police-criminal nexus is nearly always linked with bribes paid to the police to look the other way.

4. Why do people excuse corruption? Many people accept corruption as inevitable and unavoidable. Others condone it, even going so far as to say that nothing should be done about it; that it’s a form of gift giving. Others say that it actually is useful, because at least you get what you pay for. If we want to fight corruption effectively, we will need to tackle the following reasons that people consistently use to justify corruption.

Excuse 1: Corruption is everywhere.

Excuse 2: Corruption always existed.

Excuse 3: Concept is vague and culturally determined.

Excuse 4: Cleansing will require whole change in attitudes & values.

Excuse 5: Corruption is not harmful; it is the grease that moves the economic engine.

Excuse 6: Nothing can be done if the top is corrupt and corruption is systematic.

Excuse 7: Don’t worry, with free markets, it will eventually go away.

With these ‘justifications’ in mind, people typically pay bribes for the following ten reasons:

Reason 1: Need for speed: This results in payment of speed money to fast track applications. This in turn incentivises offices to slow down procedures deliberately, so that they can collect fast tracking payments.

Reason 2: Convenience: Closely related to speed money. People pay because they are too busy to go to an office and find it convenient to outsource corruption to an agent for an overall service charge. This happens in cases where processes are convoluted, long drawn out and multi-step.

Reason 3: Fear, nervousness and relief: Many people have a dread of going to government offices and fear that they will be harmed if they do not pay bribes. In many cases, the fear is totally unjustified, but still sadly persists. People also pay bribes out of relief. Therefore, one time transactions in peoples' life, like buying a flat or getting a car, are more bribe prone than others. People consider bribing for registration as something like a tip paid out of happiness and relief at the completion of the transaction.

Reason 4: Ignorance and unwillingness to learn: People who are otherwise savvy, do not go to websites, or do their homework enough to understand a procedure before hand.

Reason 5: Misinformation by middlemen and touts: Closely related to ignorance and unwillingness to learn. Ignorant people are vulnerable to being cheated by corrupt officials and their touts who mislead them by mystifying processes.

Reason 6: Persuasion by peers and elders: Closely related to ignorance and unwillingness to learn. Bribing behaviour, and the notion that unless one pays a bribe nothing can be secured, is passed on from generation to generation and fortified through peer discussions.

Reason 7: Fear of justified, unjustified or excessive punishment: This covers payments such as bribes paid to the police to look the other way when there is a clear violation of the law. In the absence of the bribe, the bribe payer is vulnerable to punishment.

Reason 8: Faced with the denial of an essential service from a corrupt monopoly: For example, people are cornered and pay bribes for restoration of electricity and water connections, because if they do not pay, they are subject to high levels of inconvenience. With respect to the above reasons, one can expect that at least the bribe payers could be dissatisfied with the act of paying a bribe. However, there are two more reasons why people pay bribes, which make it especially hard to detect and cure. These are as follows:

Reason 9: Mutual benefit: This typically happens in bribing to lower tax rates. For example, bribing to accept under-valued properties for registration or to reduce property tax rates. In such cases, both the bribe giver and the bribe taker benefit and the government suffers. Typically, for such cases, there are no complainants.

Reason 10: Avoiding business loss or getting unwarranted windfall profits: This is a strong justification for the supply side of private sector corruption. Businesses do not mind paying bribes because of two reasons. First, if they do not pay, they suffer business loss. Second, whatever they pay can be passed on to the consumer through an enhanced selling price. Systematically understanding why people pay bribes is a vital input into finding cures for corruption subsequently.

5. What are the different forms of corruption? Corruption typically takes the following forms:

Form 1: Petty Corruption: The bribes that one pays in daily, over the counter transactions.

Form 2: Public Procurement corruption: Corruption in the procurement by government of various goods and services, such as contracts for roads, construction, computer maintenance, etc.

Form 3: Sale of natural resources: Corruption in handing out mining licences, bandwidth for mobiles, urban land allocations, etc.

Form 4: Policy corruption and state capture: When a large private organization, either a commercial or even a religious institution, literally ‘buys’ political parties, or members of legislatures and officials cutting across party lines, in order to get large, policy favours from the government.

Form 5: Private sector corruption: Though all forms of private sector corruption are not criminalized yet in India, it is a serious problem, which often provides the impetus and support for government corruption. The different forms of private sector corruption are as follows:

• Within Corporates: (eg: HR, Procurement, Cheating by submitting false bills)

• Between Corporates: (eg. Kickbacks for deals)

• Professional corruption: (eg. Unethical practices by lawyers, CAs, doctors)

• Between Corporates and Governments: (eg. bribing of government officials, acting as intermediaries and agents for bribe collection on behalf of government officials and politicians)

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