3RD FLOOR FLY said...

Political corruption undermines political and economic development in many communities, and raises difficult challenges for state aid.

Political corruption in the form of accumulation or extraction occurs when government officials use and abuse their hold on power to extract from the private sector, from government revenues, and from the economy at large. These processes of accumulation have been called extraction, embezzlement, rent-seeking, plunder and even kleptocracy ("rule by thieves"), depending on the extent and context. Extraction takes place mainly in the form of soliciting bribes in procurement and government projects, in privatisation processes and in taxation.

The other process, when extracted resources (and public money) are used for power preservation and power extension purposes, usually takes the form of favouritism and patronage politics. It includes a favouritist and politically motivated distribution of financial and material inducements, benefits, advantages, and spoils. Techniques include money and material favours to build political loyalty and political support. Power-holders can pay off rivals and opposition and secure a majority support. By giving preferences to private companies they can get party and campaign funds, and by paying off the governmental institutions of checks and control they can stop investigations and audits and gain judicial impunity. Furthermore, by buying loyal decisions from election commissions and by buying votes they can secure their re-election.

Political corruption takes place at the highest levels of the political system, and can thus be distinguished from administrative or bureaucratic corruption. Bureaucratic corruption takes place at the implementation end of politics, for instance in government services like education and health. Political corruption takes place at the formulation end of politics, where decisions on the distribution of the nation's wealth and the rules of the game are made.

Political corruption is usually also distinguished from business and private sector corruption. This is only a matter of academic classification, however, since the bribes offered by private companies, domestic and international, are frequent and significant corruption drivers. Our focus here, however, is not on the supply side of corrupt transactions, but on the demand side. Most definitions of corruption also emphasise the demand (state) side, for instance in stating that corruption is "abuse of public authority and power for private benefit".

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