CORRUPTION AND ITS IMPACT ON ECONOMY

Abstract

The corsairs were private sailors. Who was hired and served in private ships, with a license to attack ships from an enemy country. Corruption can often be a practice of systematic looting or banditry, as ancient as the crime itself and older than piracy., as the crime itself and older than piracy. The corrupt steal the disposable income from various sectors, and society becomes a slave to these practices, since this corruptive activity becomes common, like life itself, following the example of the meaning of words, bribery, means bribery, in Spanish, it becomes a rascal, a person who cheats or steals, this play on words shows us that in addition to piracy (pirate fishing in Thailand, Somali pirates, etc.), it is repealed today. In analogy, corruption assumes its role, through the performance of its networks, as a game of rascals, people who associate in groups to obtain benefits, from the private sector, public or political, through the practice of acts of corruption. As we will see in the following chapters, sometimes the intentions are not economic, some acts of corruption, are produced by avoiding rules, jumping regulations, and/or circumventing regulations, but what is important and majestic is the convergence towards an "art of corruption "that society observes and supports daily. It is a multi-causal phenomenon, today with the sophistication of transactions, offshore bank accounts, and the participation of "facilitators" of operations, the corrupting cocktail is complete, as well as the possibilities of managing money electronically. Obtaining perks, contracts, or paying lower taxes, we see that corruption becomes an art. The book redefines three areas of origin of corruption, the political sphere, with full influence in the Public sector and private sector. Continuing the globalization of phenomenon corruptive, and the appearance of interest groups in the degradation phenomenon, we develop the theory of networks, within it, we will see the characteristics of networks, open and closed networks, reaching probable "micro- corruptive worlds, or small worlds of corruption, these worlds emerge, in response to legal and illegal lobbyists. What is the basis for the emergence of corruption networks, social networks, the comparison of the aforementioned networks and their differences are developed, their breeding ground is systemic corruption or "Corruptocracy". We will review the corruption in the history of the world, through some empires, which were degraded, until being engulfed by corruption itself. The hypotheses about corruption will serve us, to determine the difference between the paradox as belief and the truth, to distinguish between the false and the true. In the chapter on the cost of corruption, data from journalistic investigations are used, and the percentages are refined based on the reality of these reports, in the bribe rate and the public works surcharge rate. Moreover, in economics it is important to model this phenomenon, in this chapter, we will analyze the economic models that best represent the economy of corruption.