ECONOMIC  ASPECTS  OF  CORRUPTION Cover Image

Ekonomické aspekty korupcie
ECONOMIC ASPECTS OF CORRUPTION

Author(s): Daniela Zemanovičová
Subject(s): Economy
Published by: SAV - Slovenská akadémia vied - Ekonomický ústav SAV a Prognostický ústav SAV

Summary/Abstract: Corruption and the rate of its dissemination in the Slovak Republic present not only moral, social and political, but also economic aspect. On the one side is the state of corruption described by official data on investigated and sanctioned corruption cases, on the other side methods based on perception. According to the World Bank survey of the year 2000 the perception of corruption in Slovakia is spread mainly in health care, justice, public prosecution office, Fund of National Property, Customs and Police. According to CPI index (Corruption Perception Index) Slovakia, in spite of the slight improvement, is evaluated as the worst of the V4 countries. Economic impacts of corruption are linked with the losses ensued from internalities in the decision making process, worsened resource allocations, deformation of economic competition, increased transaction costs, increased risk for investors, influence on the ex-tent and structure of public expenditure. Aside from economic impacts, corruption influ-ences negatively social inequality of citizens, and makes rules and order question-able. Corruption causes are connected with formal and informal rules. The space for cor-ruption originates when there is a monopoly (significant unbalance of supply and de-mand, exclusiveness, information monopoly etc.), when there is too much freedom in the decision making in the public sector (discretion power) and low transparency. Cor-ruption is influenced also by informal rules (corruption is often tolerated by citizens, shared values, accepted behaviour formulae, active or passive civil society). Based on the identification of causes one can suggest also tools to limit corruption. In the area of formal rules steps are necessary in the prevention field (ensuring the transparency of the rules, processes and institutions, access of the public to the informa-tion, solution of the collision of interest, implementation of the public administration reform, reforming some sectors of administration, ethic reform, limiting administrative barriers for entrepreneuring, limiting freedom in making decisions etc.) The condition for the restriction of corruption, however, is also the efficient repressive system that could make corruption risk high. In the Slovak Republic the repression string (control, police, courts, prosecution) is a weak spot in the system of confronting corruption and citizens perceive its individual parts as stricken by corruption too. Besides prevention and repression one can suppress corruption by increasing percep-tion of citizen of the corruption problem, know-how, by participative model of public administration and by the education of citizen

  • Issue Year: 50/2002
  • Issue No: 02
  • Page Range: 182-181
  • Page Count: 14
  • Language: Slovak
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