In the name of Allah, most gracious, most merciful.

*We are HINA SHOUKAT 26

AYSHA SALAHUDIN 36

GHULAM ABBAS 20

*How corruption effects on Economic growth.

*HINA SHOUKAT

*INTRODUCTION.

Corruption consequently ranges from the broad term of the misuse of public power.

*CORRUPTION

Corruption as an act of bribery involving a public servant and a transfer of tangible Resources.

Corruption in long run may destroy the whole society morally , ethically and economically.

*Corruption and economic growth Corruption and economic growth has no clear correlation .Strong institution , political stability ,fast and reasonability in decision taking are some of the requirement for fast economic growth.

*objectives

*Investigate the impacts of corruption on economic growth.

*How many impact of corruption on the economic growth in the sample country.

*Investigate corruption in these countries exhibit the efficient grease syndrome.

*Corruption is a complex and multifaceted phenomenon with multiple causes and effects.

*Corruption is the abuse of public power for private benefit or profit.

*AYSHA SALHUDIN

*Economic growth

*Economic growth is the increase in the market value of the goods and services produced by an economy.

* It is measured as the percent rate of increase in real gross domestic product. 

*The growth of the ratio of GDP to population (GDP per capita), which is also called per capita income.

*GDP growth caused only by increases in population is called extensive growth

*Relationship between Corruption and Growth.

* In a poor country such as Pakistan, the National Accountability Bureau NAB

has  stated that Rupees 130 to 200 Billion is lost annually in its development 

and other programs that could directly benefit the Citizens of Pakistan, the

losers most times being the education and health sectors.

*  

In broad terms, corruption is the abuse of public office for private gain. It

encompasses abuses by government officials such as embezzlement and

nepotism, as well as abuses linking  public and private actors such as bribery,

extortion, influence peddling, and fraud.

* Though corruption often facilitates criminal activities such as drug trafficking,

money laundering, and prostitution, it is not restricted to these activities.

*Impact of corruption on our society

*To a varying degree, corruption exists in almost all

countries. However, the degree to which it impacts the

common people’s lives and increases poverty is

directly proportional to the level of this scourge and

how widespread it is in society. Countries or provinces

development depends on how much of the States

resources are lost to this ugly practice

Pakistan, where each borrowed dollar must be spent to uplift the people from poverty, it has a significant impact. A recent World Bank report lists corruption and lack of transparency as the two core reasons that hamper Pakistan’s drive for development.

*Many people in Pakistan believe that much of the development and a significant portion of the operations allocations are lost due to bribery and other related illegal and unethical activities

*A World Bank report containing an assessment of the Pakistan’s Infrastructure Capacity (PICA) states that 15 percent of the countries development budget for 2007-08 was lost in corruption

*The sectors those most affected by it are the police and law enforcement, judiciary and legal profession, power sector, tax and customs, health and education, and land administration

*GHULAM ABBAS 20

FACES OF CORRUPTION

METOHD OF REDUCING

*4 Form of corruption

Bribery

Fraud

Embezzlement

Extortion

BRIBERY: Bribery is understood as the

payment (in money or kind) that is given or taken in a corrupt relationship. Equivalent terms to bribery include, for example, kickbacks, commercial arrangements or pay-offs.

EMBEZZELEMENT means theft of resources for administrating them.Bank corruption

FRAUDIt involves manipulation or distortion of information, facts and expertise by public officials for their own profit.Double Shah

ExtortionExtortion is money and other resources extracted by the use of coercion, violence or threats to use force.Zafar supari ,MQM

Method to reduce

8 method to reduce corruption

  Introduce state-funding as part of election reforms:

A reasonable and transparent tax structure, backed by clean and clear enforcement: 

Reduce the role of the state in people's lives to the absolutely essential:

  Genuine autonomy for the public/government sector:

Minimize discretionary powers of ministers and bureaucrats: 

Liberal and contemporary laws that citizens can understand and respect:

Pay government and PSU officers, judges and policemen market-indexed salaries commensurate with their responsibility:

Introduce sweeping police reforms and stronger judicial accountability:

Introduce state-funding as part of election reforms:

 The high cost of elections and candidates' dependence on money, often of questionable provenance, compromises them from the very outset

A reasonable and transparent tax structure, backed by clean and clear enforcement: 

Finally, there's the larger question of how efficiently and honestly taxpayers' money is put to use — when you see the state of government hospitals and schools, and rotten roads, you wonder where the money you paid as tax has gone.

Reduce the role of the state in people's lives to the absolutely essential:

 The greater the scope for state interference — be it the police or the clerk in a government office or the customs inspector — the greater the scope for harassment and graft.

Genuine autonomy for the public/government sector

There is always a temptation for political bosses to exert their influence and swing the contract for chosen ones and receive handsome kickbacks.

Minimize discretionary powers of ministers and bureaucrats: 

This would reduce scope for misuse of such powers to favor some --- especially in lucrative areas such as award of government land.

Liberal and contemporary laws that citizens can understand and respect:

 People find it difficult to accept ridiculous, outdated and moralistic laws — worse, they may not even be aware of some of these laws till some law enforcer somewhere decides to use them to harass and to extract money. Once you dismiss a law or rule as stupid and worthy of breaking (like not allowing drinking under 25 years of age), there's a human tendency to take other laws less seriously.

Pay government and PSU officers, judges and policemen market-indexed salaries commensurate with their responsibility:

This would minimize the 'need' for bribes. Their salaries could be benchmarked against corporate sector salaries.

Introduce sweeping police reforms and stronger judicial accountability:

This has been discussed for decades but there's been no action. The recommendations for reforms are already there. Set a time frame for implementation. This will make the police not just a professional force that's not at the beck and call of politicians, but also a trained one with in-built checks against developing vested interests.

The main result obtained here is that the growth-maximizing level of corruption is not necessarily equal to zero, confirming the predictions of political economy theory developed over the last three decades. In order to eliminate corruption from its roots, we must undo its causes. We must end the feudalistic culture where the fate of a country lies with few hand full numbers of the families.

*Thank you Audience