The Impact of Corruption on the Economy, Politics, Government & Law

The Impact of Corruption on the Economy, Politics, Government and Law – Sinaumed’s, do you know what are the effects of corruption? Corruption has a negative impact that can occur in all existing fields. Corruption is considered very bad because it harms many people. This action is not only carried out by people who have high positions, corruption can also be done from small things such as lying.

According to Law no. 31 of 1999 Article 2 Paragraph 1 states that anyone who unlawfully commits an act of enriching himself or another person or a corporation that can harm the state’s finances or the country’s economy, shall be punished with life imprisonment or imprisonment for a minimum of 4 (four) years and a maximum of 20 (twenty) years and a fine of at least Rp. 200,000,000.00 (two hundred million rupiahs) and a maximum of Rp. 1,000,000,000.00 (one billion rupiahs).

Sinaumed’s can also read the book Understanding Interpretation of Articles of Corruption Crimes to better understand the references used to determine an appropriate punishment for someone who commits a criminal act of corruption.

Of course, corruption must be eradicated quickly and no mercy is given, because theft of people’s money must be punished quickly and thoroughly. In the absence of corruption, the country will be safe and will not experience many losses incurred.

This corruption also has impacts that can be detrimental to the state in all existing fields. Starting from the economic, social, government, political, educational and other fields. Here is the impact of corruption from all fields.

This book specifically discusses corruption offenses and their application in court decisions. Corruption, a loss to state finances, has turned into a material offense, so it is absolute by proving a causal relationship.

This book also describes corruption, embezzlement in office, extortion, fraudulent acts, and conflicts of interest in the procurement of goods.

The Impact of Corruption on the Economy

1. Decreased Productivity

Productivity in every industry and production will decrease because of the impact of this corruption. The productivity of the companies will be hampered and they cannot develop further. This can lead to a reduction in the number of employees or layoffs, then there will be a lot of unemployment which causes the poverty rate to increase.

2. Declining State Revenue from Taxes

The APBN is financed by taxes of 70%. Income Tax (PPh) and Value Added Tax (VAT) are the types of taxes that contribute the most to state revenue.

This decrease in income is due to the fact that many unscrupulous tax officials take advantage of this bad opportunity to enrich themselves. This has also resulted in public distrust of tax officials, and of course will hamper the development process and harm the community.

3. Increasing the State Debt

Corruption will certainly worsen the country’s finances. Besides previously the state already had debts with other countries, with corruption the debt would only increase. These thieves of people’s money are not aware that what they are doing can worsen the state of the country. They only think about personal gain.

4. Decreasing Economic Growth and Investment

The presence of corruption in a country will cause investors from abroad to no longer believe in legal certainty in acts of corruption to invest in a country’s industry. This condition complicates economic development.

Within this private sector, corruption is detrimental to the commercial sector due to losses from illegal payments, risks of cancellation of agreements due to investigations, and management costs in negotiations with officials.

5. Low Quality of Goods and Services

Corruption will also hinder the growth of the country itself because the state’s money is made to enrich itself. The quality of goods and services is low and unfit for public use.

Poor quality rice that is unfit for consumption, delays in repairs for collapsed bridges and buildings, improper gas cylinders have the potential to explode and damage public and private community facilities.

Corruption will also reduce the quality of the foundation of development projects, because in it there is bribery, reducing the material for corruption. All of this is done for self-interest.

See also  Learn Map Reading Skills and Steps

6. Adding Expenses in Economic Transactions

The existence of bribes, extortion, misappropriation of funds in an economy will make transaction costs even greater. The amount of transaction costs will cause inefficiencies in the economy such as the use of resources for creation, use, maintenance, change, and so on.

The institutional system will be more efficient if transaction costs are low, but if it is the other way around, the institutional system will not be effective. It’s no longer a secret that Indonesia is used to extortion in the production of various documents such as birth certificates, driving licenses (SIM), and others. This causes high transaction costs and a bad institutional system.

7. Income Inequality

This act of corruption causes the transfer of resources for the public into the hands of the perpetrators. This reduces government spending. With this act of corruption, income inequality will occur between the corrupt elite and the community due to the transfer of resources to the public earlier.

Several countries must always try to reduce acts of corruption to prevent income inequality because corruptors dredge public money for personal gain. However, Unslaner (2011) states that the impact of corruption on income inequality is reciprocal. This means that corruption causes income inequality, and income inequality also causes corruption.

8. Increasing Poverty

The Central Statistics Agency divides poverty into four categories, namely:

  1. Absolute poverty , means someone who has conditions below the poverty line or can be said to be unable to meet the needs of clothing, food, health and education to live and work properly.
  2. Relative poverty , meaning poverty due to the influence of policies that cause income inequality. This relative poverty standard is determined by the subjective views of the community.
  3. Cultural poverty , meaning poverty caused by cultural factors that make a person shackled in a poor condition.
  4. Structural poverty , meaning poverty that occurs due to the powerlessness of a person or group of people against certain policies and creates an unfair system, so that they are trapped in poverty.

Corruption is the cause of poverty in society. Besides having a direct effect, corruption also has an indirect effect on poverty. Initially, this channel of corruption had the effect of decreasing economic growth which ultimately led to an increase in the poverty rate.

People who experience poverty will feel the high price of public services, the low quality of services, access to water, health, and education.

The prices of basic commodities are also not within the reach of the poor, livable housing, health and others are very difficult to access because legal information is not in favor of the poor.

With the increase in the poverty rate, of course, the crime rate will also increase. Small communities will also commit corruption, not only high officials. In accordance with the explanation regarding income inequality which has reciprocity, in this case it will occur. Where the poor will do everything they can to stay alive, one of which is corruption.

The Impact of Corruption in the Sector of Government

1. Dead Social Ethics

With the existence of acts of corruption from one member of the group, other members will cover up these actions in various ways. This is detrimental to society and the country. Of course it is very disappointing because people’s representatives even cover up cases of corruption that can harm society.

Many state officials do not feel ashamed and wrong when they commit acts of corruption. This is the meaning of dead social ethics. People who have high positions do not feel wrong in taking the rights of people who need it more. There is no honesty and justice for society.

2. Inefficient Bureaucracy

Bureaucracy has a goal to provide services to the public. But what if the service is very difficult and convoluted. Of course, people will find it difficult if they want to take care of their documents. Not to mention if people are required to pay to speed up public services, this is what is called extortion. Government bureaucracy should be free for the people and not make it difficult.

This government bureaucracy should prioritize the interests of society, not just personal and group interests. If there are lots of extortion and bribes, the state will not progress, corruption will continue to occur everywhere.

3. Loss of Government Functions

Corruption has an impact on the government because it is unable to carry out its actual functions. This condition is very worrying because what is feared is that more corruption will occur, but the government will become more lenient.

Personal corruption can tarnish the good name of an organization

The Impact of Corruption in the Field of Law

1. Ineffective Legislation

All parties can accept bribes and extortion. The rich will be made easy, the poor will be made difficult. Everything will be easy if there is money. Even justice can be bought easily. Laws that used to be fair can now be bought. Laws are sharp downwards and dull upwards.

Therefore, it is very important for the government to take firm action and re-enforce the applicable law, as discussed in the Corruption Eradication book.

See also  difference between parfum and toilette

2. Loss of Public Trust in the State

Through the mass media we will get information about our own country and even the world. With cases of acts of corruption in their own country, there will be a lot of information from various mass media regarding the dilapidation of laws in Indonesia regarding corruption cases. Laws don’t really protect people. The corruptors look calm when they are prosecuted, as if there is no difference between being punished and not.

This book will provide a review of criminal politics as an eradication of corruption from the perspective of legal culture.

The Impact of Corruption in the Political Field

1. Leader of Corruptors

The practice of bribery from party leadership candidates during a democratic party will create an image that they will also become corrupt candidates. This tradition has been going on for a long time, prospective leaders always give money or in the form of groceries so that people vote for them during elections.

Society seems to be required to elect corrupt leaders. They only promised things that might not be done when he took office. We have to stop this tradition.

2. The Public No Longer Believes in Democracy

Corruption also causes the public to no longer believe in democracy. All state officials, legislatures, and top state officials are no longer trusted by the public because there are many corruptors from within. In fact, the public may not vote for anyone during the general election because of this act of corruption, this can be a public consideration. Situations like this must be overcome with leadership that is clean, honest, and fair.

3. Strengthening Plutocracy

Plutocracy is a political system that is controlled by you who have large capital. Every major company has ties to certain parties. Some businessmen are also chairmen of certain political parties. This makes corporate and party interests incompatible. The chairman of this party can take bribes easily if they want to win because of the large amount of capital they have.

4. People’s Sovereignty is Destroyed

The world of politics only belongs to a group of people within a political party. They will continue to compete with other parties just to achieve their victory. Of course, the winner will be able to master everything. Only they are a group of people in political parties who win, the people only live in poverty and the future of the country is unclear.

The Impact of Corruption in the Field of Defense and Security

1. Defense and Security Vulnerabilities

The state is supposed to have defense and security from the air, land and sea. This defense and security must be maintained and facilitated properly so that there is no disturbance of state sovereignty.

However, this will be impossible if the budget for defense and security is corrupted by corruptors. Of course it will make weapons facilities and other things in defense and security not good. This is what creates the vulnerability of defense and security to protect the country.

2. Weak State Boundaries

Corruption also causes people living on the border of the country to experience poverty. There is no fleet guarding the national borders. The budget for the people is corrupted, this makes it difficult for people living on national borders to access water, electricity, education, and so on.

The economy tends only to urban areas, while border areas are getting worse because they are not taken care of. This can be the cause of many people moving countries because there is no concern from the government. This area is also prone to smuggling of illegal goods.

3. Violence in Society

Public trust has been lost due to corruption. What the government says is ignored. Even all government policies the public will not care. They think that government programs will not change anything.

This causes them to protect themselves and those closest to them in order to survive by using negative means. Violence and fights will arise if this situation occurs.

Impact of Corruption in the Environmental Sector

1. Low Environmental Quality

Corruption causes environmental quality to be low. This is caused by many factors that damage the environment so that the quality becomes low, such as economic interests, deforestation, mines that are exploited on a large scale.

All of these activities have links with high-ranking state officials and law enforcement officials. All forests in a country are deforested because state officials exploit nature. They don’t see the harm it causes, only take it for their personal gain.

2. Decreased Quality of Life

The existence of environmental damage and low quality of the environment will affect our quality of life as well. Starting from the destruction of forests that decompose oxygen, air pollution from more and more industrial factories, polluted waters due to toxic waste, and dead fish from toxic waste.

If everything we need has been contaminated by toxins and pollution, many diseases will also arise in our bodies. This is a decreased quality of life. Humans and babies cannot meet the needs of good nutrition because of the damaged environment. Physically will weaken and get sick easily.

Conclusion of the Impact of Corruption

Well, Sinaumed’s, those are some of the impacts of corruption in all fields. With acts of corruption, the state and society will be affected. Corruption is absolutely not justified whatever the reason. Corruption must be eradicated thoroughly to its roots. Corruptors should be punished as severely as possible so they don’t repeat their mistakes that harm the country.