Corruption always flows from down to above in underdeveloped countries. Corruption at the top affects key decisions and policies with sweeping implications while core decisions are taken on merit through transparent competition. So why is corruption or bribery prevalent in third world countries? It is because if wage level of the public employees is below the survival level of a family, many employees think of closing the gap with corruption and eluding the law with paying off bribery which will cost them less in the long term rather than while following the law. High wages makes losing the job more undesirable so decreases bribery. As economy opens to foreign trade and the level of national income rises, a decline in the level of corruption or bribery is expected. In an open and rich country, there is a less pressure on redistribution. In low-income countries people fight to share a constant perceived share of the big thing while as development level increases, production and productivity get more important, hard work gets more
Corruption always flows from down to above in underdeveloped countries. Corruption at the top affects key decisions and policies with sweeping implications while core decisions are taken on merit through transparent competition. So why is corruption or bribery prevalent in third world countries? It is because if wage level of the public employees is below the survival level of a family, many employees think of closing the gap with corruption and eluding the law with paying off bribery which will cost them less in the long term rather than while following the law. High wages makes losing the job more undesirable so decreases bribery. As economy opens to foreign trade and the level of national income rises, a decline in the level of corruption or bribery is expected. In an open and rich country, there is a less pressure on redistribution. In low-income countries people fight to share a constant perceived share of the big thing while as development level increases, production and productivity get more important, hard work gets more