A study of the effects of corruption on economic and political development of Armenia

Abstract

The essay demonstrates that high scale corruption may have very harmful effects on economic and political development. Corruption as one of the oldest phenomenon in human society exist in every country contemporary world. Corruption can be defined in many ways such as general disease of body politics, public exploitation and abuse of public office for private gain. The causes of corruption also are many in number. For example, cultural factor, psychological factor and system related factors may cause corruption in every society. There are some factors such as monopoly power, discretionary power and weak accountability of public officials may give opportunities for corrupt acts. Corruption may decrease the efficiency of public spending, decrease the budget revenues, raise the budget deficit, hinder Foreign Direct Investment, reduce the effectiveness the use of aid, dissipate political legitimacy and hinders the democratic development. The anticorruption campaign should mainly concentrate on the reforms of civil service, judiciary system, tax and custom departments. In Armenia the successful implementation of anticorruption campaign is preconditioned by the free and fair elections, politically educated people and by honest leader.