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The implication of corruption on the economic growth of a country

The implication of corruption on the economic growth of a country On this page, we critically examine how corruption affects a nation’s ability to prosper economically. The economy suffers from corruption, which must be stopped at all costs. This has been demonstrated by various corruption scandals that have occurred at all levels of government, from the presidential to the municipal. A nation like South Africa can speak to this. South Africa is still undergoing development and is plagued by unfavorable circumstances like unemployment, poverty, immigration challenges, and infrastructural issues (electricity, railways, airways, etc). In these circumstances, corruption is a significant barrier to advancement. A country’s hope is undermined where corruption is rampant.

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.

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