Determinants of Corruption & its Impact on

Pakistani Society

Student Name Muddasir Farooq

Session 2015-2019

Department of Political Science

Government College No.1 Dera Ismail Khan

 Table of Contents
Approval Certificate....................................................... Error! Bookmark not defined.
Acknowledgement ......................................................... Error! Bookmark not defined.
Chapter: 1 INTRODUCTION ................................................................................... 4
1.1 Background ................................................................................................................ 4
1.2 Statement of the problem ........................................................................................... 5
1.3 Objectives of the study............................................................................................... 5
1.4 Significance of the study............................................................................................ 5
Chapter: 2 Literature Review ..................................................................................... 6
2.1 Corruption .................................................................................................................. 6
2.2 The connection between aid and corruption .............................................................. 6
2.3 Checking Corruption .................................................................................................. 6
2.4 corruption & poverty.................................................................................................. 7
2.5 Anti-Corruption Agencies .......................................................................................... 7
2.6 Money Laundering in Support of Terrorist Financing ............................................... 7
2.7 Culture and Corruption ............................................ Error! Bookmark not defined.
2.8 Improve Accountability ........................................... Error! Bookmark not defined.
2.9 Levels of corruption ................................................. Error! Bookmark not defined.
a. Vertical levels of corruption ................................... Error! Bookmark not defined.
b. Horizontal areas of corruption.............................. Error! Bookmark not defined.
2.10 Military in Politics and Corruption ........................ Error! Bookmark not defined.
2.11 Money Laundering or Financial Corruption .......... Error! Bookmark not defined.
2.12 Unemployment in different department: ................ Error! Bookmark not defined.
2.13 Legislative Corruption ........................................... Error! Bookmark not defined.
2.14 Low Salaries........................................................... Error! Bookmark not defined.
2.15 Corruption in the recruitment process.................... Error! Bookmark not defined.
2.16 The Impact of democracy on Corruption is Complex.Error! Bookmark not defined.
2.17 Other Forms of Corruption in Pakistan.................. Error! Bookmark not defined.
2.18 Impact on Investment ............................................. Error! Bookmark not defined.
2.19 Financial Corruption .............................................. Error! Bookmark not defined.
2.20 Association between Religious Values and CorruptionError! Bookmark not defined.
2.21 Education ............................................................... Error! Bookmark not defined.
2.22 Causes of Corruption in Pakistan........................... Error! Bookmark not defined.
2.23 Causes of Corruption in Modern Day Pakistan ..... Error! Bookmark not defined.
2.24 Impact of Corruption in the Education Sector ....... Error! Bookmark not defined.
2.25 The Impact of Corruption on Economic Growth ... Error! Bookmark not defined.
2.26 Corruption in the Health Sector of Pakistan .......... Error! Bookmark not defined.
2.27 A human Rights-Based Approach to Anti-CorruptionError! Bookmark not defined.
Chapter 3 Research Methodology .............................. Error! Bookmark not defined.
3.1 Approaches .............................................................. Error! Bookmark not defined.
3.2 Data Type ................................................................. Error! Bookmark not defined.
3.3 Data Analysis ........................................................... Error! Bookmark not defined.
Conclusions .................................................................... Error! Bookmark not defined.
References ...................................................................... Error! Bookmark not defined.
 Determinants of Corruption & its Impact on Pakistani Society

Chapter: 1 INTRODUCTION

1.1 Background
Corruption is defined as misuse of entrusted power for private benefit is unfortunately endemic in
Pakistan. No structure, no tier and no office of public sector are immune from it. Its spread is
enormous. It has reached every organ of state beyond executive it has put its claws on judiciary
and legislature even. It would be no exaggeration to say that the whole body of the state of Pakistan
is suffering from this malaise and wailing under its dead weight. So enormous is its incidence that
Pakistan is ranked 139th in the comity of nations on the scale of corruption free governance
(Javeed, 2010).

Corruption is a limp in the walk of human progress. It is not a new phenomenon; it is as old as the
history of mankind itself. The corruption made itself visible when the institution of the government
was established. No region, and hardly any country, has been immune from corruption. Like a
cancer, it strikes almost all parts of the society and destroys the functioning of vital organs, means
cultural, political and economic structure of society. All this was proved by the major corruption
scandals of France, Italy, Japan, Philippine, South Korea, Mexico, United States etc. These
scandals bring the corruption problem on the agenda of major international institutions like
International Monetary Fund, World Bank, World Trade Organization, Transparency International
and Organization for Economic Cooperation and Development (shabbier, 2007).

Corruption is not a new phenomenon. Two thousand year ago, Kantilla, the Prime Minister of
Indian king, had already written a book, Arthashastra, discussing it. Seven centuries ago, Dante
placed bribers in the deepest parts of Hell, reflecting the medieval distaste for corrupt behavior.
Shakespeare gave corruption a prominent role in some of his plays; & the American constitution
made bribery one of two explicitly mentioned crimes which could lead to the impeachment of a U
S president. However, the degree of attention currently paid, to corruption is unprecedented &
nothing short of extraordinary (Tanzi, 1998). The aim of this study is to dig out major factors
behind corruption and its impact on Pakistani Society.
1.2 Statement of the problem
Corruption is a major issue in Pakistan as it is affecting every field in our society, governance,
economy & global status also. The purpose of this study is to find the reasons behind corruption.

1.3 Objectives of the study

 To highlight the causes of the corruption in Pakistan.

 To highlight the types of the corruption.
 To highlight the accountability of the corruption in Pakistan.
 To explore the factors behind corruption in Pakistan.

1.4 Significance of the study

Corruption is a trending topic in Pakistan, everyone is crying from the evil of corruption, but very
few people know about the background and the types of corruption. This research work will help
the readers to know the background and types of corruption in Pakistan.
Chapter: 2 Literature Review

2.1 Corruption
Corruption defined as misuse of entrusted power for private benefit is unfortunately endemic in
Pakistan. No structure, no tier and no office of public sector are immune from it. Its spread is
enormous. It has reached every organ of state beyond executive it has put its claws on judiciary
and legislature even. It would be no exaggeration to say that the whole body of the state of Pakistan
is suffering from this malaise and wailing under its dead weight. So enormous is its incidence that
Pakistan is ranked 139th in the comity of nations on the scale of corruption free governance
(Javeed, 2010).

2.2 The connection between aid and corruption

Aid is intended to reduce poverty and support equitable and sustainable development. Its aim is
to assist countries in establishing the infrastructure (governmental, social, economic and
physical) that is essential for achieving growth and stability. By supporting these structures, the
conditions are created for the equal participation of citizens in related social, political and
economic processes and for attracting domestic and foreign investment. The purpose and nature
of aid varies considerably across nations. Aid is only one of several factors that play a role in
reducing poverty.

2.3 Checking Corruption

Checking corruption is no easy task. Still no one denies the need to check corruption effectively.
It may not be possible to eradicate corruption completely but then vigorous and determined actions
will go a long way to minimize it. The measures suggested are too many and defy any easy
characterization. To contain and minimize corruption a number of measures have been
recommended. These include: driving out corruption by means of usually one-off purges or
campaigns, setting up of anti-corruption boards, commissions and the like, campaign for moral
regeneration or moral re-armament, strengthening of checks on abuse of power and the
enhancement of accountability of the powerful as well as public officials, ensuring transparency
and openness in governmental activities, develop positive social attitudes, enforcing a code of
public ethics, supporting the role of media, improving educational procedures(Khan, 2004).
2.4 corruption & poverty
If India reduces the corruption to the level that exists in Scandinavian countries then Its investment
can increase by 12 percent while its GDP growth rate increases by 1.5 Percent per annum. If
Bangladesh reduces the corruption to the level that exists in Uruguay then its GDP growth rate
increase by half percent. Similarly, if Pakistan Reduces the corruption to the level that exists in
Singapore then GDP growth rates Increase by two percentage points. When government official
use their authority for private gains, it is considered Corruption. Income inequality and poverty is
affected by corruption through Different channels such as biased tax system, growth, social
programme, and human Capital formation and education inequalities. The higher the corruption,
the greater the poverty will be. It is consider that the higher growth rate reduce poverty. But
Corruption and income inequality slow the growth performance of the country (Usman, 2009).

2.5 Anti-Corruption Agencies

Since 1990s, more than 30 countries have established some form of anti-corruption agency
(ACA) or commission as key tactic in their efforts to fight corruption (USAID, 2006). All these
anti-corruption agencies are mandated to adopt procedures that engage in prevention, detection
or punishment of corruption. The need for establishing anti-corruption emanates from Article 6
of the United Nations Convention against Corruption that requires that each signatory country
establish a body (department) dedicated to the prevention of corruption. Theoretically the
impetus for establishing anti-corruption agency should arise from the government; however,
there are certain other motives that also need to be considered. For instance, pressure from
international community for establishing such agencies.

2.6 Money Laundering in Support of Terrorist Financing

Terrorist financing is, in some respects, the reverse of typical money laundering. In most money
laundering cases, the perpetrators have “dirty” money which they are seeking to “clean” or
“wash” sufficiently to reintegrate it into the global economy so that they can enjoy its use. In
terrorist financing, often the sources of the funds are “clean” or legitimate, but the final uses to
which the funds are put constitute heinous violent and destabilizing crimes against humanity.