impact of corruption on economy and especially Prince George’s County:
- 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;
- Corruption binds free competition, with the biggest damage done to small businesses;
- With decreasing competition, the quality of goods and services becomes worse;
- State revenues decrease and the shadow economy grows;
- 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;
- Foreign investors have less trust in the state and their contribution to the country’s economy decreases.
impact of corruption on state governance:
- Less state investment and smaller efficiency of state-ordered works;
- Areas of governmental activities and structure of expenditure are subject to change – corrupt public officials “push” the projects which guarantee bigger gain;
- Corrupt government is weak and constrained;
- Selfishness of public officials overshadows strategic thinking in terms of the needs of the state, therefore, economic and social problems lack proper attention;
- The quality of public services deteriorates.
Socio-political consequences resulting from Corruption:
- Having no trust in corrupt politicians and public officials, citizens lose trust in the state;
- There is less involvement in public activities and less interest in the work of democratic bodies;
- There is less political competition when autocratic ideologies become more popular;
- Social tension grows and the political stability of the state diminishes.