Corruption explained: Different forms and effects

Transparency International, a global movement working in more than 100 countries for greater integrity in public life, defines corruption as ”the abuse of entrusted power for private gain.”When individuals and organizations promote interests other than the ones they are entrusted to serve, the result is corruption. It occurs in both the public and private sector.Public officials are entrusted with power to serve the public interest.Corruption in the public sector can redirect funds from vital infrastructure such as hospitals, schools, and roads.This loss is felt most severely in developing countries, but it is also felt in developed countries, where large sums can be lost through more subtle forms of corruption.Private sector employees are entrusted with power to serve the legitimate interests of their organization.Corruption in the private sector undermines competition, drives up prices, and lowers the overall quality of goods and services. Ultimately, it harms the consumer.The effect...