“Corruption is like a cancer, it hinders the economic development”
James Wolfensohn, former president of the World Bank.
The State’s position on the global market arena, as well as protection of people’s interests and the government's political direction are important for each resident in every country.
Today we examine one more factor that affects not only the financial security of people, but also entire nations.
Regardless of geography, so-called “risk factors” that threaten financial security may occur.
You are already familiar with them.
a provocation or pressure that takes place on the world scene, threats or an intention to cause harm, aggressive military action.
a danger posed by the actions of country’s authority, an instability of the banking system, a wakening of the national currency and over-criminalization of the economy - corruption.
Let’s look up closely at one of the most important risk factors that undermines the basis of every country’s financial security, hence of every country’s citizen. This is corruption.
Corruption (from Latin - corrumpere “to corrupt”, Latin - corruptio “bribery, venality; decay, decomposition, defilement”.)
The term refers to the abuse of power or power position with a purpose of personal gain. Corruption was first mentioned in XXIV century BC. King of Lagash of ancient Mesopotamia began his battle against bureaucrats and judges in attempt to curb abuse of power.
The extent of corruption has changed over time. Levels of desires and personal interests increase, as a result, threats to stability and financial security get severe.
The level of corruption depends on these factors:
1. Economic well-being of the State
2. Development of the legislative and judicial systems in the country
4. Historical and geographical factors
First of all, it affects political, economic and social spheres.
The high level of corruption leads to the inefficient use of resources, to inequality and poverty, financial risks, crime level and price increase, diminishing confidence in Government. The shadow economy grows in a country with a high corruption level, as well as the slowdown in investments and social tension are probable.
According to the Transparency International data, the list is topped by Somalia, North Korea, Syria, Yemen, Sudan, Afghanistan and Venezuela. In these countries, the level of power and its position abuse is incredibly high, scoring less than 20 points out of 100.
Corruption Perceptions Index ranks countries on a scale from 100 to 0. It is calculated based on the public data gathered from population surveys, information about the prevalence of bribes and impunity.
Top 10 countries with the lowest Corruption Perceptions Index:
There are 178 world countries in the list. On top of the list are such countries as Denmark, New Zealand and Finland. These countries scored 90 out of 100. Italy scored 47 points, Spain - 58. For instance, Brazil and India scored 40 points, Colombia - 37, Philippines - 35. Russian scored 29 points, Venezuela - 17.
Corruption is like Hydra, seizes more and more countries. Venality or bribery are outbreaks of the LFS virus (Lack of Financial Security.) The higher the level of corruption gets, the lower the level of your security becomes.
Corruption particularly leads to the growth of the crime in the country, following an increase of the shadow economy extent. When a person is sure that an envelope of money can resolve all the issues, when a life's credo “I’ll fix that in every possible way” becomes a priority, it is fair to argue about the involvement of “grey eminence” in the country or company. In this case, the State and the person won’t be on equal terms. The system of the State’s national and person’s financial security are threatened. The reason behind all of it is corruption.
First of all, by strengthening your Financial Security.
By acquiring knowledge about factors that hamper the stability and security you can see and understand root causes.This gives you the ability to apply knowledge as a driving force to counteract the LFS virus.
Financial security is the ability to resist the current and emerging risks as well as threats that are trying to cause material damage.