Thursday, 25 August 2011

Consequences of Corruption







Consequences of Corruption
On a macroeconomic level, corruption limits economic growth, since private firms see corruption as a sort of "tax" that can be avoided by investing in less corrupt countries. In turn, the lower economic growth results in less government revenue available for investment, including investment in the health sector. Corruption also affects government choices in how to invest revenue, with corrupt governments more likely to invest in infrastructure-intensive sectors such as transport and military, where procurement contracts offer potential to extract larger bribes, rather than social sectors like health and education. Within the health sector, investments may also tend to favor construction of hospitals and purchase of expensive, high tech equipment over primary health care programs such as immunization and family planning, for the same reason.
Corruption in the health sector also has a direct negative effect on access and quality of patient care. As resources are drained from health budgets through embezzlement and procurement fraud, less funding is available to pay salaries and fund operations and maintenance, leading to demotivated staff, lower quality of care, and reduced service availability and use . Studies have shown that corruption has a significant, negative effect on health indicators such as infant and child mortality, even after adjusting for income, female education, health spending, and level of urbanization . There is evidence that reducing corruption can improve health outcomes by increasing the effectiveness of public expenditures .
A review of research in Eastern Europe and Central Asia found evidence that corruption in the form of informal payments for care reduces access to services, especially for the poor, and causes delays in care-seeking behavior . In Azerbaijan, studies have shown that about 35% of births in rural areas take place at home, in part because of high charges for care in facilities where care was supposed to be free . In many countries, families are forced to sell livestock or assets, or borrow money from extended family and community members, in order to make the necessary informal payments to receive care.
Besides informal payments, other types of corruption which clearly affect health outcomes are bribes to avoid government regulation of drugs and medicines, which resulted in the dilution of vaccines in Uganda and has contributed to the rising problem of counterfeit drugs in the world. Dora Akunyili, Director General of the National Agency for Food and Drug Administration and Control in Nigeria, writes eloquently about her struggle to lead Nigeria’s battle against counterfeit drugs .Unregulated medicines which are of sub-therapeutic value can contribute to the development of drug resistant organisms and increase the threat of pandemic disease spread. In addition to fake and sub-therapeutic drugs on the market, corruption can lead to shortages of drugs available in government facilities, due to theft and diversion to private pharmacies. This in turn leads to reduced utilization of public facilities. Procurement corruption can lead to inferior public infrastructure as well as increased prices paid for inputs, resulting in less money available for service provision.
Unethical drug promotion and physician conflict of interest can have negative effects on health outcomes, as well. As documented by Jerome Kassirer, promotional activities and other interactions between pharmaceutical companies and physicians, if not tightly regulated, can influence physicians to engage in unethical practices . Studies have shown that these interactions can lead to non-rational prescribing, and increased costs with little or no additional health benefit. Patients’ health can be endangered as some doctors enroll unqualified patients in trials or prescribe unnecessary or potentially harmful treatments, in order to maximize profit .

Health finance systems and corruption




How and where corruption appears in the health sector depends partly on the health financing system (much of corruption found in the health sector is a reflection of general problems of governance and public sector accountability) . A health finance system that directly finances the supply of services will be more vulnerable to corruption in procurement and abuses that undermine the quality of services. A system that relies on billing an insurance institution is generally more vulnerable to diverting funds. The first system is known as an integrated system, while the other, with a separation between finance and provider, is called a “finance/provider system”.  Integrated health systems are the most common form of public health systems in developing countries.  Countries with social insurance systems can however be found in middle income countries of Latin America and Asia . In an essay contributed to Transparency International’s Global Corruption Report 2006, William Savedoff and Karen Hussmann explore how the type of national health financing system can affect the level of corruption (Part I: the causes of corruption in the health sector: a focus on health systems. Why are health systems prone to corruption?).”http://www.google.co.in/url?sa=t&source=web&cd=1&ved=0CBsQFjAA&url=http%3A%2F%2Fwww.u4.no%2Fthemes%2Fhealth%2Fcausesandconsequences.cfm&ei=nRtXTrS6DsfjrAeBuenMCg&usg=AFQjCNH7spqqrfQeC-cMFmD49btBaVZ_Xg&sig2=mKfrHOpxs9-pfQc_0bOASg

Corruption in the health sector





 










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Corruption in the health sector is a concern in all countries, but it is an especially critical problem in
developing and transitional economies where public resources are already scarce."  Corruption reduces the resources effectively available for health, lowers the quality, equity and effectiveness of health care services, decreases the volume and increases the cost of provided services. It discourages people to use and pay for health services and ultimately has a corrosive impact on the population's level of health. A study carried out by the International Monetary Fund (IMF) using data from 71 countries shows that countries with high indices of corruption systematically have higher rates of infant mortality  . Preventing abuse and reducing corruption therefore is important to increase resources available for health, to make more efficient use of existing resources and, ultimately, to improve the general health status of the population.



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Improving public health is a fundamental precondition to ensure human development.




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Improving public health is a fundamental precondition to ensure human development.
The importance of health for economic growth and reduction of poverty is reflected in the Millennium Development Goals (MDG). Three out of the eight goals refer directly to health. One additional goal refers to access to affordable drugs in developing countries. To ensure universal and equitable access to quality health services, governments must earmark a sufficient share of public revenues for health. While most rich countries spend at least 5% of GDP on health, many developing countries spend less than half of this .
Insufficient health budgets due to deteriorating economic conditions, combined with burgeoning health problems such as the global HIV-AIDS pandemic, have led to a shortage of drug and medical supplies, inadequate or non-payment of health workers salaries, poor quality of care, and inequitable health care services in many low income and transition countries. The result has been deterioration of general health and an increasing degree of corruption at all levels of the health system

Conclusion


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Conclusion
     Corruption is an intractable problem. It is like diabetes, can only be controlled, but not totally eliminated. It may not be possible to root out corruption completely at all levels but it is possible to contain it within tolerable limits. Honest and dedicated persons in public life, control over electoral expenses could be the most important prescriptions to combat corruption. Corruption has a corrosive impact on our economy. It worsens our image in international market and leads to loss of overseas opportunities. Corruption is a global problem that all countries of the world have to confront, solutions, however, can only be home grown. We have tolerated corruption for so long. The time has now come to root it out from its roots.




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Measures to combat corruption


Measures to combat corruption

     Is it possible to contain corruption in our society? Corruption is a cancer, which every Indian must strive to cure. Many new leaders when come into power declare their determination to eradicate corruption but soon they themselves become corrupt and start amassing huge wealth.
     There are many myths about corruption, which have to be exploded if we really want to combat it. Some of these myths are: Corruption is a way of life and nothing can be done about it. Only people from underdeveloped or developing countries are prone to corruption. We will have to guard against all these crude fallacies while planning measures to fight corruption.
· Foolproof laws should be made so that there is no room for discretion for politicians and bureaucrats. The role of the politician should be minimized. Application of the evolved policies should be left in the hands of independent commission or authority in each area of public interest. Decision of the commission or authority should be challengeable only in the courts.
· Cooperation of the people has to be obtained for successfully containing corruption. People should have a right to recall the elected representatives if they see them becoming indifferent to the electorate.
· Funding of elections is at the core of political corruption. Electoral reforms are crucial in this regard. Several reforms like: State funding of election expenses for candidates; strict enforcement of statutory requirements like holding in-party elections, making political parties get their accounts audited regularly and filing income-tax returns; denying persons with criminal records a chance to contest elections, should be brought in.successinlifebycollege.blogspot.com

Causes of corruption






     The causes of corruption are many and complex. Following are some of the causes of corruption.
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· Emergence of political elite who believe in interest-oriented rather than nation-oriented programmes and policies.
· Artificial scarcity created by the people with malevolent intentions wrecks the fabric of the economy.
· Corruption is caused as well as increased because of the change in the value system and ethical qualities of men who administer. The old ideals of morality, service and honesty are regarded as an achronistic.
· Tolerance of people towards corruption, complete lack of intense public outcry against corruption and the absence of strong public forum to oppose corruption allow corruption to reign over people.
· Vast size of population coupled with widespread illiteracy and the poor economic infrastructure lead to endemic corruption in public life.
· In a highly inflationary economy, low salaries of government officials compel them to resort to the road of corruption. Graduates from IIMs with no experience draw a far handsome salary than what government secretaries draw.
· Complex laws and procedures alienate common people to ask for any help from government.
· Election time is a time when corruption is at its peak level. Big industrialist fund politicians to meet high cost of election and ultimately to seek personal favour. Bribery to politicians buys influence, and bribery by politicians buys votes. In order to get elected, politicians bribe poor illiterate people, who are slogging for two times meal.

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