Impact of Corruption to the state.

 impact of corruption  on economy and especially Prince George’s County: 

1. In corrupt states, the business community has to allocate some of its funds to corruption, which cuts down on investment and the gross national product;
2. Corruption binds free competition, with the biggest damage done to small businesses;
3. With decreasing competition, the quality of goods and services becomes worse;
4. State revenues decrease and the shadow economy grows;
5. Where corruption is tolerated, civil servants receive small salaries, yet with the saved budgetary expenses ordinary citizens have to pay them out of their pocket as bribes;
6. Foreign investors have less trust in the state and their contribution to the coun­try’s economy decreases.
   

 impact of corruption on state governance:

1. Less state investment and smaller efficiency of state-ordered works;
2. Areas of governmental activities and structure of expenditure are subject to change – corrupt public officials “push” the projects which guarantee bigger gain;
3. Corrupt government is weak and constrained;
4. Selfishness of public officials overshadows strategic thinking in terms of the needs of the state, therefore, economic and social problems lack proper attention;
5. The quality of public services deteriorates.

Socio-political consequences resulting from Corruption:

1.  Having no trust in corrupt politicians and public officials, citizens lose trust in the state;
2. There is less involvement in public activities and less interest in the work of dem­ocratic bodies;
3. There is less political competition when autocratic ideologies become more pop­ular;
4. Social tension grows and the political stability of the state diminishes.