A Detailed Analysis of the Importance of Corruption in the UK Economy

This essay examines the importance of corruption, particularly its impact on the UK economy. It delves into the origins of corrupt behavior, motivations behind it, and the far-reaching consequences on the UK's development. The essay references a 2013 report indicating significant losses due to fraud and corruption, highlighting the need to understand why corruption is prevalent, especially in developing countries. It covers the costs and impacts of corruption, its effects on economic growth, and a comparison of corruption levels between the UK and developing countries. The research design includes both qualitative and quantitative aspects, utilizing numerical data and content analysis of UK government policies, along with in-depth interviews. The study aims to understand corruption's influence on liberal democracies and the motivations driving corrupt behavior, emphasizing the urgency of addressing corruption due to its deep impact on the country's development.

Running Heads: THE IMPORTANCE OF CORRUTION
The Importance of Corruption
Name of the Student
Name of the university
Authors Note

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Table of Contents
Title............................................................................................................................................3
Introduction................................................................................................................................3
Main body..................................................................................................................................4
Overview of Corruption and its implication in Liberal democracy.......................................7
Corruption and the Relative Motivation People.....................................................................9
Gaps in the Literature...........................................................................................................10
Conclusion................................................................................................................................11
References............................................................................................................................12

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Title
The Importance of Corruption.
Introduction
The corruption level in UK has not been an endemic problem but it has significant
impact of the rate of development. According to the Transparency International UK (TI-
UK) 2011, the issue of corruption had a major role in aggravating the vulnerabilities of the
key sectors and institution in UK. Corruption in itself has various meaning and it varies
according the context. In this report, the definition of the corruption has been identified as
any “abuse of entrusted power for private gains”. According to the report, Britain ranked 14th
out 177 nations but it must also be kept in mind that, recently the corruption has reduced
where Britain ranked 11th and scored 80 out of 100. The reason why corruption is detrimental
to society it erodes the public confidence in government transparency. Moreover, according
to the Transparency International 90 per cent of the respondent in UK do not believe in the
fair-play of the government. UK being the financial and diplomatic centre has larger
influence in the world affairs and UK’s connection with the resource-resource-business make
it an active participator in the Bribery and corruption abroad.

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This paper will aim to explain why people tend to imbibe a corrupt behaviour and the
far-reaching impact it has on the people of UK. A report was out particularly in 2013 that
showed that over $1 trillion was lost due to fraud and corruption. Another extra million was
drained for identifying the root cause of the corruption. The purpose of this paper is to show
how corruption in various level affect the economic growth and it will try to identify the point
of its origin. Along with exploration of the issue related to corruption there will also be a
comparative study regarding the corruption level in the developing countries.
Main body
The research design of this paper is going to include both qualitative and the
quantitative aspect. Numerical data will be used to substantiate the data gathered by the
content analysis of the list of plans and polices of the UK government. Recent amendments
that have been taken place in relation to illicit money laundering and crimes will also be
covered in the assignment. This will be followed with an in-depth interview consisting of
both open-ended and close-ended question. Data will also be gathered across boundaries and
a comparative study will constituted for how the phenomenon of corruption is taking place in
developed countries. This research is going to be a mixed research, which will consist of both
positivist and interpretative paradigm. In this way, the importance of corruption can be
realised from the macro scale to the micro scale.
Data will be gathered from multiple levels owing to its multiple criteria. Numerical
data will be gathered from the secondary sources that will include the government censored
authentic documentation. Various other reports will be examined to identify the loophole
exiting within the law system. The methods applied in this research will contain both
interview and the content analysis. Thus, it will follow a mixed method approach where both

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the quantitative and qualitative aspect will determine the results of research. This research
will procure data from both primary and secondary sources.
This research will include two types of variables; one will be the dependent variable
and the other will be the independent variable. Corruption, that is, any scheme designed for
private gains will be considered as independent variable. The motivation of the people will be
the dependent variable. This study will try to understand the procedure that are taking place
in the format of liberal democracies and how after the systematic procedure law ratification
corruption still exist and with a rising number (Reed 2018). Thus, both the paradigm of the
research methodology, that is, positivist and the interpretitvist will be utilised in the research
process.
The sampling techniques that will be used in this research are snowball
sampling and convenience sampling. Non-probable method of sampling will be followed
and the sample size that is going to include 50 to 60 respondents. The sample population will
involve people who are employed in the government offices and their age should be between
25 years to 45 years. There is no compulsion based on gender people from any corner of the
work life can state their opinion of corruption.
While conducting the research confidentiality can be maintained. Data has not been
manipulated and efforts have been initiated to keep it plagiarism free. No illegal or unethical
steps have been followed while doing the research. Data has been gathered from the trusted
source and requested anonymity has been maintained. No one coerced to give out any piece
of information. The research took place owing to all the principles of ethical issues.
This research will aim to explore the origin of corruption level and identify the reason
why people tend to fall in the trap of corrupt behaviour. It will also try to understand the
motivation and the inspiration of the people who are trying to adapt the malicious behaviour

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(Kwon 2012). There is an urgent need to address the issue of corruption particularly in UK
because it has a deep impact in the development of the country. Specific activities like tax
evasion costs the UK government more than £6 million each year. This paper will try to
explore on the issue related to plans and the policies of UK government and will try
examining the process through which it works.
Worldwide corruption and its relation with UK
According to the Corruption Perception Index 2013, there is no country that had
scored zero in the level of corruption because the phenomenon of corruption cannot be
controlled; only efforts can be planned for mitigating corruption in their root levels.
According to the Corruption Perceptions Index (2017) (forbes.com), no country has made
sufficient progress in nullifying the corruption. Out of 180 countries, almost two-third of
countries have scored below 50 and the global average is 43. Some of the country like UK is
making a slow progress but the other countries like Syria, Yemen are sliding downwards.
With the advent of globalization, countries have become one global unit thus corruption or
use of money for private gain cannot be restrained in a specific location. Being a centre of
global capital the hoarding of financial capital not only affects the economy of UK but also
the world economy. It slows down the production affect the financial flow and thus reduces
the development process. It also fuels the inequality due to the concentration of wealth.
Use of pecuniary measures in UK to combat Corruptions
Corruption Watch is a London based anti-national corruption NGO and it was
founded in 2009 stated that UK’s political framework was too weak to put halt to the growing
cases of corruption. According to Corruption Watch, there has been no successful criminal
prosecutions of a bank and UK has showed “a serious problem in holding its companies to
account”. However, the financial aid that UK provides to the developing countries has risen
by 10% in 2016. Data shows that most of the countries that UK aided are the corrupt counties

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that include Somalia, South Sudan, and Syria and so on. UK has strategized a threefold
program to nullify the corruption rate. This program includes, demonstrating the breadth of
corruption present in UK, to set out clearly the actions initiated for combating corruption and
to raise priorities for combating corruption at international standards. UK has tried to help
other developing countries by aiding them financially and developing an anti-corruption
program.
Citizen’s reflect
According to the Transparency Report people believe their politics but they do not
have faith in their politician. The public perception report stated that there is a lower level
trust in the representative institutions than the administrative institutions. The level of trust in
the political institutions suffer sometimes due to the political crisis as well. Satisfaction level
derived from the functioning of the government tends to fluctuate
UK should help the developing countries
The developed countries should assist the developing countries for a more sustainable and
better future. However, it must also be remembered that the monetary fund should be utilized
for the development of the countries. Studies shows the countries to which UK aids, have
failed to invest in their own people. Penny Mordaunt told to the Daily Telegraph that they do
not wish to invest “when other put their hand in the pockets”. Other global issue needs
current attention like poverty, illiteracy and education. UK needs to help the developing
countries so that these countries can become independent and fend for themselves.
Overview of Corruption and its implication in Liberal democracy
Corruption is basically the negative phenomenon of the public integrity concept that
affects the functioning of the governance of the country (Biebricher 2015). The level of
corruption can be playing on various in multiple layers. Corruption can occur on different

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scales like, for example, it can include petty corrupt behaviour that involves a minimum
number of people or the grand corruption that affects the functioning of the government
(Rogoff 2017). Systematic corruption may also take place but what makes it different from
petty and grand corruption is its endemic nature. Corruption can also occur in different sector
for instance in the political sector, educational sector, religious sector so on and so forth.
Thomas Piketty, (2016) in his pioneering work the Capital resonates how corruption can the
affects the state of democracy and result in increasing inequalities (Kuhner 2015). The rising
level of and the failure of the state to function properly describes the skewed relationship
between possession of wealth and ownership of power. It vividly ascribes to the
disharmonious status between state and society. In the words of Collin Leys the impact of
corruption needs to be effectively gauged because not necessarily corruption breeds bad and
unimportant consequence. Corruption affects diversely on the motivational aspirations of the
people. For instance, petty corruption can motivate the low-ranking official to perform their
usual duties, which are mostly in the forms of grease payments. Thus, corruption should be
measured in systematic and organised methods not against in political or economic results but
with standards unknown. In the classic work of Harold Lasswell, (1963) question like “who
gets what, when, and how” helps to identify the root cause of corruption. Corruption bring
with it, its own merits and demerits, here the demerits are longer than the line of merits. The
entire body of corruption in economic or in the political realm weakens the due process of
law as well as the civil rights of the people, it does so by blocking the legitimate channels of
political access and giving way to the illicit ones. Such cases of patronage or official
harassment give way to the lost political choices and inferior public services. Thus, it
successfully jeopardise the entire framework of the political, economic and the social
structure.

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Anti-corruption campaigners claimed that UK is the global centre of corruption,
where Roberto Saviano, an expert of anti-mafia advocates that UK is the foreground where
maximum amount of fraudulent cases and corruption takes place (Lusher 2016). According to
him, the financial capital is the most corrupt sector than any other sectors in UK (Lusher
2016). As UK is the largest financial centres it illegitimately participates in the act of money
laundering with the corrupt money that is received form the overseas. It has been also stated
that the anti-money laundering scheme are so weak that it has becomes the prime location for
the stashing the illicitly accumulated money. It was also stated that after the leak of Panama
papers the miserable condition of the UK‘s financial state of affairs got more exposed,
globally. The Transparency International specified that each year ten billion pound are
illegally laundered backed this breach of financial capital. It also identified 9.3 percent of
properties borough in Westminster are owned by the offshore companies. The Transparency
International also found that since 2004 £180 million worth of UK property are under
criminal investigation due to the usual suspect of corruption. However, it must be noted that
the act of corruption has pervasive role to play in the smooth running of the state. It can
impacts the lives of the citizen as well as harmonious growth of the society.
Corruption and the Relative Motivation People
Corruption not only plays a huge role in the macro activities of the state but it also
affects the motivation of the people residing in the state. It hinders the growth of integrity and
sustainable development (Crocker 2016). There is an urgent need to address the issue of
corruption because every issue of corruption has a direct connection with the notion of good
governance. In this place, the ethical consideration of a human conduct needs to be defined.
A proper ethical human conduct is developed through the self-exploration that enables one to
identify the definitiveness of human conduct. Thus, efforts taken to curb the unethical
standards need to measure against the notion of good governance. This is because it is the

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responsibility of the government to ensure that the citizens living in the healthy condition.
Any strategy that is formulated to curb the rising corruption rate should focus on the
economic and institutional reforms (Crocker 2016). Another important factor is the presence
of a disciplined workforce that ensures the efficacy and compliance to the rules and
regulations of the government. This kind of accountability is essential for the smooth running
of democratic government. Any problem that arises in the functioning of the government
needs to analyse in keeping with the holistic approach of state governance. Thus, the culture
of impunity needs to critically and realistically analysed.
Both the monetary need and the non-monetary need of the individual must be taken
into consideration while studying the motivation of the people (Momčilović et al
2011).Studies show that the inclination of the individual to participate in the corrupt
behaviour arises due to the “overjustification” effect (Dhillon et al 2017). Monetary
compensation or financial aid do not shun the act of corruption. Thus while studying the
motivation level of the citizen in participation the nature of the pool of citizenry must be
critically analysed. Generally, it has been stated that the lower wage has been the cause of
the bureaucratic corruption and thus provision for “efficiency wage” was used to combat
against the growing corruption level. (Amir and Burr, 2015). However in the practical level
the effect of monetary incentives as an anti-corruption measures has received a quite mixed
response. There are different motivation that become the driving force for different
personalities (Kwon 2012). It is not always the monetary gains but sometimes it is the love
for mercy or love for praise that is becoming the driving force for their inclination of immoral
activities. The heterogeneous nature of human motivation largely affects the targeting
government policies. Practical studies show the basic rise in the monetary incentives perishes
the reputational values of the good deeds done (Publications.parliament.uk. 2016). Thus, the
act of corruption cannot be reduced to the level of financial or monetary incentives.

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Measures taken to reduce the corruption include increased monitoring, higher wages,
and lower discretionary measures by the government. Identifying corruption should be based
on the evaluation and different of corruption should be taken into account. Generally,
corruption is recorded either by direct observation or by perception surveys for example
general-populations attitudinal survey or expert assessments. The government incurs huge
expenditure for combating corruptions. Another theoretical model of Motivation, Corruption
and Discretion shows that the extrinsic motivation for the public service can reduce the
motive of corruption. This study took pace in Korea by surveying 800 central government
bureaucrats. According to this study bureaucrats’’ intrinsic motivation is negatively
associated with the tendency of corruption which is an extrinsic motivation. However again
rewards in monetary form can create doubt in the minds of the people, which will fail the
purpose of the true social behaviour.
Gaps in the Literature
The presence of corruption is a universal truth and an inevitable reality that is taking
place at all level of human universe. Corruption can have disruptive impact in social, political
and economic development of the country (Dimant et al 2018). Thus it becomes very
important for the analysing the means and the end through which corruption occurs. At the
macro level, it disrupts the healthy flow of the political system, which instead aggravates
disrespect and distrust among its citizenry. Again, at micro level the dwindling status of the
individual motivation needs a deep examining because it constitutes the core of social nature.
Going with the global trend of how developed countries take part in the money laundering
and the corruption need to assessed.
From the above mention literature no studies has described the civic perspective of
the citizen to participate in corruption. The economic aspects of people involved in the
corrupt activities have been dealt before but the non-pecuniary perspective has been left out.

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Moreover cross cultural study concentrated their modus operandi of studying corruption only
from the point specific lenses (Dhillon et al 2017). These kind of labelling or corrupt
activities under the wider umbrella of politics, economics or social sphere steal way the
holistic nature of corruption. However studies have made on the kind and the degree of
corruption but remedies taken by the government on the advent of corruption need a deeper
analysis. In this paper the importance of corruption will be discussed along with the
comparative across countries. In this the real motivation in the civic perspective also needs to
analysed. The natural tendencies for people to fall in the trap of corruption needs deeper
analyses because it is not always the monetary rewards but sometime it can be out of the
sheer pleasure that people act meanly for their private gains. The tax evasion and the policies
and plans regarding it must be critically analysed so that the loopholes can be arrested.
Conclusion
The purpose of this research is to explore how the presence of worldwide corruption
affects the UK. Corruption is present worldwide and it is manifested in various form. The
presence of corruption has reduced and is not present in an endemic form but the high level
of financial corruption can take its toll, if not restrained properly. Proper legal framework
needs to be built for arresting the loopholes of law. Effective strategizes of financial plan will
also help in bring the right form of order (Epstein 2018). Moreover, the nature of the
economically developed countries and their respective take on the act of corruption can duly
be gauged.