Corruption and poverty alleviation

Corruption has always been pervasive in this country. Bangladesh has been ranked as the 'most corrupt country' in the world for four consecutive years by the Berlin-based Transparency International (TI).
Although Bangladesh was placed in the 13th position in the Corruption Perception Index (CPI) of the TI in 2013, still the country is confined to 0-3 scoring which means Bangladesh is still one of the most corrupt countries in the world. Corruption is also a major cause of poverty in Bangladesh; it is found at all levels, ranging from local and national governments, government offices, to large and small businesses and other services.
Needless to say that poverty and corruption are interrelated. Although there are many reasons for poverty in the country, without curbing corruption, a poverty-free nation cannot be established.
Economic theories and empirical evidence suggest that corruption impedes economic growth, and hence accentuates poverty by discouraging investment and entrepreneurship or raising their costs, curtailing access to public services, lowering quality of public expenditures, reducing revenue collection, promoting rent-seeking, and distorting composition of public expenditure. Corruption is a key element in economic underperformance.
It is one of the most important reasons why poor countries remain poor and yet a lot of people working in the development field seem to be willing to tolerate a little corruption as an 'inevitable fact' of life in Bangladesh.  Corruption is clearly a very serious problem, which hits the poor the most, and deprives millions of people of access to necessary services. It takes away from them the opportunity to earn a living.
When it comes to the indirect cost of corruption, it becomes a foregone conclusion that we are made to patronise the corrupt system as we have to pay more tolls. Because of the existence of a huge underground economy, the fiscal policy has a negligible effect on inflation. The fiscal and monetary policies are rendered futile by the huge impact of black money on the economy.
Coming to the indirect cost, corruption is also found to be seriously damaging society, and with it, the economic potential. The younger generation is losing its work ethics and appears to be developing a 'sense of entitlement'. Why should someone try to be productive when the least productive members of  society are the wealthiest? Why invest in risky ventures when you can focus your efforts on getting a government concession?
It is now obvious that corruption in Bangladesh is a major obstacle to investment and growth. It delays, distorts and diverts progress. In addition, poor people and the economically poor businesses have few alternatives left and where serious corruption is the norm, they are even more vulnerable to exploitation.
The link between corruption and poverty affects both individuals and businesses. Corruption also thrives upon weaknesses in key economic, political and social institutions. Furthermore, all tiers of society are affected by corruption in some way or other as it undermines democracy, environment, people's health and more. Moreover, it weakens the key institutions of the national integrity system, and prevents rule of law. Corruption erodes public trust in government, and breeds injustice. It is also increasingly linked to violation of human rights and spread of the culture of impunity. In short, corruption disproportionately affects the poor. It helps in keeping our poor people poor.
According to the World Bank, corruption damages programmes and policies that aim to reduce poverty. It is difficult to alleviate poverty when a country is engulfed by corruption. Since it is clear that corruption pitches the odds heavily against development in our country, it is now high time the people raised their voice against it.
As a solution, the government should play the stellar role by properly enforcing the rule of law as well as by strengthening Anti Corruption Commission (ACC) with a view to curbing corruption. In addition, our politicians must fight against corruption.
And last but not least, all people must be made morally sound as its absence is one of the key factors that breed corruption.     

The writer is an Assistant Professor in Social Work, Centre for General Education, Northern University Bangladesh.
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