CORRUPTION

Corruption of public officials poses a special problem in developing nations because of the government's dominant role in the economy. When a special interest groups or minorities have no legal channels of influence, corruption may be an effective method of influencing government policy. Corruption also represents a government's efforts to cope informally with a rate of social change that is beyond the capabilities of the formal political system. In the west and some of the underdeveloped countries corruption has given new groups the opportunity to influenced the government without resorting to violence. In areas where loyalties are restricted to kinsmen, corruption may be the only way to foster commitment to a wider group, such as a political party. There is another form called market corruption where the wealthy elites will compete for favours. The beneficiaries of corruption also depend on power relationships among the rulers, the bureaucracy, and political parties. The ruling elite will always profit to some extend, but in a system with competitive parties, benefits extend to the party cadre and voters. Market corruption can promote economic development as seen in Philippines, Thailand, and Malaysia. On a second thought India can be included. It raises business business costs beyond the profitable level or unless uncertainty about governmental decisions prevails. Elites can impede political integration since it excludes voters. Market corruption can also affect the pricing system and harm community interests when there are no centralised controls.