179
CORPORATE SCANDALS |
Corruption, acknowledges Caiden, is an obstacle to world development because it discourages investment,
undermines stability, destroys effective governance and demoralises people. Aside from its out-of-pocket
cost to bribers and its cost to non-bribers in lost business or delayed or non-performance by government,
corruption, writes P. Richardson, has numerous indirect costs.
25.5.2 INDIRECT IMPACT
• Especially where it is pervasive, corruption can deter honest people from entering government
service.
• Corruption reduces tax revenues thereby requiring higher tax rates.
• Corruption undercuts necessary regulations.
• Corruption facilitates crime.
• Corruption can erode political ...