The implication of Corruption on The Economic Growth of a Country. On this page, we critically discuss the implication of corruption on the economic growth of a country. Corruption cripples the economy and needs to be halted at any cost. A country such as South Africa can attest to this, as there have been numerous corruption scandals all the way from the presidential level to the local governance level.
South Africa is still a developing country infested with unfavorable conditions such as unemployment, poverty, immigration issues, and infrastructure problems (electricity, railways, airways, etc). In conditions such as these, corruption is a big enemy of progress. Where corruption is rife, a country’s hope is eroded.
The implication of corruption on the economic growth of a country
In this section, we will briefly discuss the core implications of corruption on the economic growth of a country such as South Africa:
- Corruption makes tax collection difficult.
- Corruption deteriorates the public service quality and quantity (as more funds are channeled to personal accounts of the corrupted), which in therefore requires more maintenance costs after.
- Corruption prevents qualified and skilled individuals to get jobs. This is because the less qualified individuals are hired by the corrupt, in return of personal favours.
- Corruption encourages polarisation of wealth in a country. In other words, it widens the gap between the rich and the poor.
- Corruption undermines the country’s legal system and the rule of law. In this case, the wealthy get away with a serious crime as they can easily bribe their way out of trouble.