Corruption in Former Soviet Countries Essay - 1482 Words

Corruption in Former Soviet Countries Administrative corruption and state capture generally occur as the result of inadequate institutional structures and policies that do not support competition and free trade. Predictably, these inefficiencies have been especially prevalent in the transition process from a socialist to a market economy. Consequently, combating corruption has become a major factor in the debate over optimal reform strategies. Numerous theorists have suggested shock therapy as the optimal method to minimize corruption, but empirical evidence shows mixed results throughout transition economies. Overall, state capture and administrative corruption have had extremely negative economic, social, and political†¦show more content†¦Despite a high margin of error due to obvious concerns with reliability (given the nature of the subject), results have clearly indicated high levels of corruption throughout the transition economies. State capture has been particularly difficult to measure and often u nderstated in BEEPS data, because it only measures state capture that includes involvement from private firms. Nevertheless, data from this category has proven to be excessively high, especially in CIS countries, where state capture indexes are as high as 41 (as in Azerbijan), indicating an average percentage of firms involved in six different forms of state capture such as the sale of criminal court decisions and the sale of parliamentary votes. Administrative Corruption rates are also astoundingly high, with payments constituting 3.7 percent of annual revenues in CIS countries, 2.2 percent of revenues in Central Eastern Europe, and an alarming 17 percent of profits in the entire region. Results from BEEPS and the EBRD have also shown a direct negative correlation between levels of corruption and various economic and social indicators such as investment and growth, tax payments, poverty, inequality, and the credibility of the state. Together, this empirical evidence indicates the massive, negative impact that results from both types of corruption and identifies corruption as one of the leading causes of transition failure. Administrative corruption and state capture haveShow MoreRelatedCorruption in Higher Education by Paul Temple and Georgy Petrov758 Words   |  4 Pagesbribes. Corruption is the most dangerous disease of the world. It is undesirable for every society if corruption grows in education sector. It is an undeniable fact that Azerbaijan is the country which suffers from corruption, especially in education. 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