Defining Corruption

When we think of corruption we recognize it as a clearly bad and damaging description for the nations that allow it. Still, the concept may be vague. Because corruption is such a complex concept, it must be explained in terms of classifications, breadth, situations, and the levels in which it can occur in both developed and developing countries.

Governance refers to the manner in which public officials and institutions acquire and exercise the authority to shape public policy and provide public goods and services. Corruption is one outcome of poor governance, involving the abuse of public office for private gain. Public office is abused when an official accepts, solicits, or extorts a bribe and when private agents give or offer bribes to circumvent public policies and processes for competitive advantage and profit. It is also abused through patronage and nepotism, the theft of state assets, or the diversion of state revenues. Corruption can also take place among private sector parties, yet interface with and affect public sector performance.