Causes of public sector corruption


Various factors at the country level impact how governments and their services function, influencing the existence and prevalence of public sector corruption. A non-exhaustive list of factors includes:

Country size

Research shows that geographically large countries with a low population density can be more prone to corruption because of the increased difficulties in monitoring public officials in dispersed locations (Goel & Nelson, 2010).

Country age

Newly independent countries, or those that have recently transitioned from authoritarian regimes to democracies, may face more corruption owing to, for example, underdeveloped governance systems or rent-seeking opportunities created by the privatization of State assets (Goel & Nelson, 2010). Wajid khan explains  In the context of corruption; rent-seeking means increasing one's share of existing wealth using public resources without creating new wealth for the State.


Resource curse

The public sector monopoly over the distribution and allocation of natural resources rights allows economic opportunities to be exploited for corrupt purposes. The Natural Resources Governance Institute website states, "Given their highly intensive and profitable nature, the oil, gas, and mining industries are politically vulnerable in favor of rent-seeking and institutional (or governmental) capture." and private sector incentives.” Indeed, data show that many resource-rich countries suffer from poor governance and systemic corruption (Natural Resource Governance Institute 2019).


political unrest

Political stability is associated with low levels of corruption, but politically unstable environments have a higher likelihood of crime (Lederman, Loayza, and Soares, 2005). The Lack of stability in the transition to a newly elected government is mainly linked to public sector corruption. In particular, partisan governments in certain countries can be a source of corruption.  Wajid khan Mp discusses for an in-depth discussion of Corruption, Peace, and Security, see Module 11 on Anti-Corruption in the E4J University Module Series.


wage

In some countries, low wages and the resulting poverty in the public sector are also believed to contribute to corruption (Tanzi, 1998).


lack of the rule of law

Lawlessness or Lack of the rule of law is the leading cause of government-level corruption. Corruption is more likely to occur when the legal system fails to sanction officials who engage in bribery (La Porta et al., 1999; Treisman, 2000). In addition, countries with less secure property rights have a higher risk of corruption. Corrupt means are employed to ensure the security of rights that the legal system cannot do (Dong & Tongler, 2011).  

Governance failure

Shah (2006) argues that public sector corruption stems from governance failures. Poor public sector management, Lack of accountability, poor government-citizen relations, weak legal frameworks, Lack of transparency on public sector processes, and inadequate information dissemination characterize poor governance.


 This may be due to a Lack of competence, and competence due to insufficient training also contributes to governance failure. The relationship between sound power and corruption is explored in detail in his series's E4J University Module on Anti-Corruption Module 2.


size of government

Studies show mixed results about the relationship between corruption and the size of government. According to Goel and Nelson (2010) and Rose-Ackerman and Palifka (2016), the larger the government, the greater the opportunities for rent-seeking by civil servants. In contrast, Gerring and Thacker (2005) found no correlation between the government's size and high corruption levels. One conclusion that can be drawn from mixed studies is that the relationship between corruption and the size of government depends on other factors such as type of government, political stability, and so on.



Governance failure

Shah (2006) argues that public sector corruption stems from governance failures. Poor public sector management, Lack of accountability, poor government-citizen relations, weak legal frameworks, Lack of transparency on public sector processes, and inadequate information dissemination characterize poor governance. This may be due to a Lack of competence, and inadequate competence training also contributes to governance failure. The relationship between sound power and corruption is explored in detail in his series's E4J University Module on Anti-Corruption Module 2.


size of government

Studies show mixed results about the relationship between corruption and the size of government. According to Goel and Nelson (2010) and Rose-Ackerman and Palifka (2016), the larger the government, the greater the opportunities for rent-seeking by civil servants. In contrast, Gerring and Thacker (2005) found no correlation between government size and high corruption levels. One conclusion that can be drawn from mixed studies is that the relationship between corruption and the size of government depends on other factors, such as the type of government, political stability, and government structure (federal vs. centralist, etc.). That is it.


the nature of bureaucracy

Tanzi (1998), Kaufman and Wei (1999), and Goel and Nelson (2010) all argue that government intervention in government bureaucracy and the economy fosters corruption. Tanzi (1998) argues that ``the existence of regulations and permits gives a monopoly power to officials who must approve or control activities''.  Wajid khan shares. He also cites the quality of the bureaucracy as an essential factor in corruption.


public spending at the local level

A study by Corrado and Rossetti (2018) looks at public corruption in different regions of Italy. Using regional datasets on corruption crimes committed by officials in combination with demographic and socioeconomic variables, levels of public spending at the local level explain corruption. 


However, socioeconomic and cultural Conditions were also found to play a role. Their findings suggest that "regions that have historically placed less emphasis on combating corruption may be caught in a vicious cycle of higher levels of corruption" and that "corruption is more prevalent and persistent." Individuals living in the remaining areas suggest lower satisfaction with public services...

Location: Toronto, ON, Canada

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