1. bookVolume 16 (2022): Issue 1 (June 2022)
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1802-4866
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Social Implications of Corruption in Developing Countries: Case Study of Pakistan and India

Published Online: 06 Feb 2022
Volume & Issue: Volume 16 (2022) - Issue 1 (June 2022)
Page range: 1 - 13
Received: 28 Jul 2021
Accepted: 10 Dec 2021
Journal Details
License
Format
Journal
eISSN
1802-4866
First Published
16 Apr 2015
Publication timeframe
2 times per year
Languages
English
Abstract Background

The existence of corruption threatens all aspect of a society, be that social, economic or political. Corruption is more pronounced in developing countries; however, it attracts very little attention from decision-makers. This paper analyses the social implications (health and education) of corruption in India and Pakistan. According to the Corruption Perception Index Report (2019), these countries are perceived to be the most corrupt ones.

Objectives

Corruption has been researched enormously with respect to its economic and political consequences, but not much attention has been given to its social implications on human rights. Corruption violates human rights directly or indirectly. Therefore, this paper aims to elaborate the links (direct and indirect) between corruption and human rights and focus on the consequences of corruption on health and education; it also aims to present anti-corruption policies to curb corruption in the investigated countries.

Methods

The research employs a systematic literature review method (PRISMA-P 2015) that identifies currently available research, selects and assesses contribution, analyses and synthesises data, and presents pieces of evidence with a justified conclusion. It also encourages researchers to apply PRISMA protocols in future researches.

Results

The results show that more than 80% of the reviewed articles argue that corruption is one of the invincible reasons for the people's dire social condition in India and Pakistan; moreover, corruption remains ignored, which shows that there are gaps to understand how corruption can extremely dent the right to education and health.

Keywords

INTRODUCTION

Corruption is a multifaceted phenomenon that exists in every society in different forms. Complete elimination and detection of corruption is hard and expensive because of its blatant existence. However, the historical and cultural background of countries does contribute to the intensity of corruption. Klitgard (1988) argues that corruption is prevalent in a monopolistic system where one party has control over certain goods and services and holds power to decide to whom and how much of these goods and services are to be given. In such cases, inequality prevails. Arora (2009) finds out that the poor class of society suffers from inequality where the poor further weaken and are unable to hold the rich accountable for corruption. Since corruption is deeply rooted in developing countries, very little attention has been given to it by politicians. Also, the issue of corruption has not been considered as serious as it should be. No demanding course of action has been mobilised against corruption.

In our paper, we find answers for the following research questions:

What are the human rights implications of corruption in developing economies?

What are the policy alternatives to curb corruption in developing countries?

What are the missing points of current research in the field of corruption in developing states?

The countries chosen for this paper are Pakistan and India because according to the Corruption Perception Index Report (2019), these countries are perceived to be the most corrupt ones. None of them secures a rank in the (at least) top 50 least corrupt countries. The reason why we chose these countries is that they have the same colonial legacy. They are path dependent; the phenomenon of ‘path dependence’ is defined as: ‘history does matter or past influences future’ or ‘path dependence is characterized by historical sequences where contingent events set institutional patterns or series of events holding deterministic properties’ (Mahoney 2000). Moreover, Sewell (1996) defines path dependency as whatever had occurred in the past carries effects on the future happening. Nevertheless, since then, the colonial impact has been prevalent in the institutional and political structures. Today, the above-mentioned economies are undergoing social, economic and political chaos; the reasons could be many, but the endemic level of corruption is the primary one and is enormously path dependent (Angeles and Neanidis 2015).

The research employs a systematic literature review (SLR) method. A systematic review is a particular methodology which identifies currently available research, selects and assesses contributions, analyses and synthesises data and presents pieces of evidence with a justified conclusion.

First, through a systematic review of literature, we define the term corruption and seek its consequences in developing countries. Moreover, we focus on and evaluate the social (health and education) implications of corruption in developing countries. The criterion to choose countries for this research is based on ‘similar historical legacy’ of both countries. Secondly, we link the divergence of public investment in the social sector and low human development with corruption. Lastly, we analyse policy recommendations for curbing corruption in developing countries.

RESEARCH PROBLEMS AND OBJECTIVES

Corruption carries adverse effects on all aspects of a society, be that social, political, economic or cultural. For instance, Leff (1964), Huntington (1968), Acemoglu and Verdier (1998) and Gründler and Potrafke (2019) researched the economic implications of corruption. Moreover, Adsera et al (2003), Le (2003), Park (2003) and Pellegerini and Gerlagh (2008) explain the relation between corruption and political instability. Drapalova et al (2019) describe the negative effects of corruption on democracy. However, less attention has been given to social implications of corruption with respect to human rights in particular, though corruption violates human rights directly or indirectly. Therefore, the main objectives of this research are to explain the relation between corruption and social human rights (health and education) through an SLR, and to explain how corruption diverts public spending from social capital projects specifically and to identify the theories that seed corruption, in general, and finally to suggest policy recommendations to combat corruption.

LINKS BETWEEN CORRUPTION AND HUMAN RIGHTS

This paper discusses both direct and indirect links between corruption and human rights violations. For instance, Gupta, Davoodi and Tiongson (2000) discuss the direct links between corruption and human rights. They argue that corruption can violate basic human rights (education and health) particularly in two different ways: either the cost of services can be increased, so that the disadvantaged individuals cannot afford them, or the quality of services can be reduced by corruption. Similarly, Ackay (2006) and Terme and Mauro (1998) explain the indirect links between corruption and human rights. They argue that corruption diverts public spending from human developmental projects to capital-intensive projects (discussed below) which leads to low level of health and education facilities. Such an underinvestment in the social sector ends in violation of basic human rights. Therefore, an ordinary person of a state does not demand a lavish life, but instead demands for basic needs of life from the people in power (Fuhr 2013).

The Universal Declaration of Human Rights (1948) comprehensively defines human rights. In this paper, we include articles of Universal Declaration of Human Rights (UDHR) that define human rights in regard to social protection (health and education). All human beings are born free and equal in dignity and rights. They are bestowed with morality and should act towards one another in a spirit of brotherhood (Article 1). Moreover, all human beings are entitled to have equal access to public service in their country. Everyone, as a member of society, has the right to social security including health and education for the well-being and development of her/his personality (Articles 21, 22, 25, 26). In this paper, we investigate the implications of corruption on human development, that is, health and education in particular. As Sen (2005) argues, the concept of human rights and human capabilities go well with each other. Sen (1998) goes on defining development as ‘freedom-the process of expanding real freedom that people can enjoy in a society’. Health and education are believed to be important factors that freedom rely on. Miletzki and Broten (2017) argue that the availability of health and education facilities is among the most important factors that human development is based on.

THEORETICAL FRAMEWORK

The problem of corruption has been dealt with by a number of authors (see, e.g. Ackerman and Søreide 2011; Caiden and Caiden 1977). The simplest definition of corruption is as follows: corruption is characterised by the abuse of a public position for self-enrichment (Nye 1989). Jansinc (2019) defines corruption in the following way: ‘Corruption is a complex social activity in which money, goods, or other resources that belong to a public organization are exchanged or transferred covertly in a way that benefits particularistic actors instead of the organization or the general public’.

Based on the synthesis of available literature, the definition and categorisation of corruption are presented in Table 1.

Theories of corruption Public choice Studies only the decisions taken by individuals, public officials try to maximise their benefit, a decision to take a bribe is a result of rational calculation
Organisational culture theories The cause of corruption lies in group behaviours taking place inside an organisation's structure and culture. The corrupt culture of an organisation determines an individual's corrupt behaviour
Public administration theories Reforms within the sense of the New Public Management undermine traditional functions of the public sector and ultimately have a negative impact on accountability
Collective action problem Corruption arises because agents think that the other agents are also corrupted. Thus, corruption becomes an expected behaviour in a society. Corruption, therefore, becomes a feeding and the most rational strategy

However, definition and indicators of measuring corruption depend on the dimension that is being analysed since it is a multidimensional phenomenon. This is the reason why finding one universal definition of corruption is difficult. Yet, there is a broad consensus among the scholars on the definition of corruption; they define corruption as the ‘misuse of public office for personal or private interest’ (Plaček 2018). This definition is supported by principal-agent theory, where the agent is probably a public official holding discretionary power while principal refers to an individual who seeks public goods and services. The arrangements between an agent and a principal are strategic and inevitable, given the situation where the agent misuses the given authority for personal interest while the principal is in need. Yet, the principal is hesitant to report the abuse because of the high monitoring cost (Groenendijk 1997). The International Country Risk Guidance data underpins that the principal-agent definition of corruption fits in potential corrupt cases, for instance, nepotism, bribery, extortion of money and close personal relations among politicians and business tycoons (Arestis and Caner 2010).

Moreover, corruption has been mainly classified into two main kinds. The first category is grand corruption where top-level bureaucrats or politicians are involved. Grand corruption refers to a situation where politicians are involved in a public-private partnership involves a considerable amount of payments and outcomes that affect all (Mashali 2012). The second main category of corruption is petty corruption, where street-level bureaucrats are involved with citizens in taking bribes for providing different public goods and services (Ariane et al 2007). Petty corruption indicates the magnitude of payment given or received, but not the overall impact of it on the government policy (Scott 1972). There are multiple kinds of such corruption; it can be in any form, starting from utility bills to public sector contracts (Kochanek 1993). Petty corruption is a gateway to grand corruption because it creates opportunities for grand corruption (Mashali 2012).

METHODOLOGY AND RESEARCH METHODS

The research focuses on the social implications of corruption in emerging economies. For this research, two countries, that is, Pakistan and India, have been selected. According to the Transparency International report (2019), these economies are in the cluster of the most corrupt countries in the world. Systematic reviews are based on a continuum from knowledge-building and theory-generating to aggregating and summarising (Finfgeld-Connett and Johnson 2013). SLR has obtained importance in multiple fields, including public policy. To include unbiased search techniques for the identification of relevant articles and ensure objectivity and transparency, this systematic review was conducted in accordance with PRISMA protocols (Liberati et al 2009; Petticrew and Robbert 2008). The identification of analytical studies related to corruption in developing countries is premised on the following.

Gathering of relevant studies: This research follows PRISMA-P (2015) to identify relevant studies from journals, book chapters and well-renowned authors from different fields of studies, for instance, corruption, human rights, human development, political science, economics, sociology and political economy. Subsequently, an inventory of the articles was formed. This inventory aimed to have a collection of the most recent studies related to the topic; also, such a collection helps to increase the count of keywords. An Excel sheet was created to manage data and records for reviews. Moreover, relevant literature was studied from bibliographies of reviewed articles. The reviewed literature aimed to identify the social implications of corruption in transition economies.

The search strategy was premised on keywords; approximately 20 keywords and synonyms were taken into consideration to identify relevant articles. A dataset was formed for the assessment of articles’ quality in the field of corruption and social human rights (Pahlevan Sharif et al 2019). Additionally, countries’ names, which are being researched in this article, were also part of the search strategy. Google Scholar and Web of Sciences were the main search sources for using relevant concepts to locate applicable studies; majority of the studies were from peer-reviewed journals, for instance, JSTOR and Elsevier. Moreover, reports from databases, such as World Governance Indicators, World Bank, World Health Organisation and World Economic Forum, were also utilised to critically analyse health and education indicators in these developing countries (see Table 2).

Sources Keywords Interpretation
Web of Science ‘Corruption in developing countries’ AND ‘the effects of corruption in developing countries’ AND ‘implications of corruption in developing countries’ AND ‘human rights implications of corruption’ AND ‘corruption effects on human right’ AND ‘human development’ (‘social implications*’ OR ‘effects*’ OR ‘impacts’ OR ‘influence*’ ‘poverty and corruption’ OR ‘nexus’ OR ‘health indicators’ OR ‘social indicators’ OR ‘bribery’ OR ‘nepotism’ OR ‘embezzlement’ OR ‘political corruption*’ OR ‘bureaucratic corruption’ OR ‘corrupt practices*’) The existence of keywords was confirmed in the resulting articles
This search resulted in 61 studies

Google Scholar ‘Corruption in developing countries’ AND ‘the effects of corruption in developing countries’ AND ‘implications of corruption in developing countries’ ‘human rights implications of corruption’ AND ‘corruption effects on human right’ AND ‘human development’ (‘social implications*’ OR ‘effects*’ OR ‘impacts’ OR ‘influence*’ ‘poverty and corruption’ OR ‘nexus’ OR ‘health indicators’ OR ‘education indicators’ OR ‘bribery’ OR ‘nepotism’ OR ‘embezzlement’ OR ‘political corruption*’ OR ‘bureaucratic corruption’ OR ‘corrupt practices*’) The existence of keywords was confirmed in the resulting articles
This search resulted in 147 studies

Screening phase: As mentioned above, an inventory of articles, based on the techniques of Ugur and Dusgupta (2011), was created. The main objective of this inventory was to store all the downloaded articles, which helped in the screening phase. Titles and abstracts were screened by independent reviewers; however, papers relevant to the risk of bias were excluded. Moreover, to extract the data, a pilot test of 30 randomly selected papers was done for obtaining and confirming the data in accordance with PRISMA-P (2015). Approximately 208 articles were downloaded; the turnout of relevant articles was 160 during the first phase of screening. Studies relevant to the topic and its objectives were included according to the selection criteria. However, during the second screening, the studies that were not relevant had been excluded. A total of 105 closely related articles (mostly academic articles in English) were considered and reviewed to achieve the objectives of this paper. After a review of relevant studies, it was possible to mention characteristics of the articles, such as the aim of the research, used data, methodologies, limitations and results.

RESULTS

RQnr 1: What are the human rights implications of corruption in India and Pakistan? Tables 3 and 4 showing systematic analysis of corruption with its dire consequences on health and education answer the above question for two different countries. However, more than 80% of the reviewed articles argue that corruption is one of the invincible reasons of people's dire social condition in India and Pakistan. The following results also identify the main factors contributing to the creation of a corrupt environment. Such factors include weak institutional structure, political instability, lack of morality, lack of political-will and colonial legacy.

Corruption in Pakistan
CPI Report (2019) Pakistan ranks 120 out of 180 countries on the Corruption Perception Index, scoring 32 points out of 100 points
World Economic Forum, GCR (2019) Overall institutional performance of Pakistan has a score of 47.7/100 points and the country ranks 107 out of a total of 141 countries. The level of organised crimes has a score of 47.4/100 points, placing the country at 112 rank out of 141 countries. The level of transparency score is 33/100 points, which places the country at 101 position among 141 countries
Ali (2020) Politicisation of state institutions is the biggest problem in Pakistan. NAB fails to investigate high-profile corruption cases due to political influence. Panama case has not been deeply investigated
Verkaaik (2001) During the last three decades, Pakistan's prime ministers have been disqualified on corruption charges. In the 1990s, the accountability commission was introduced, which functioned as a financial check and balance instrument, yet failed to perform its function
Bashir et al (2011) It is perceived that getting work done without having a public officer bribed is not possible. Research shows that 82% of the government employees either saw or experienced misconduct in the last 1 year and 90% people do not report corrupt activities
Anwar and Bilquees (2003) Bad governance affects the poor class of the society by various means, including income inequality and reduced public spending on human development
Miankhail (2009) Due to the lack of accountability and transparency in the public sector of Pakistan, misallocation of resources is the key problem. Public funds have been distorted, protecting the interest of elites
Khan (2016) Having colonial roots and due to political instability (due to civil-military clashes) and high political interference, state institutions have become shallow and no concrete course of action is taken to combat corruption
Chene (2008) In Pakistan, corruption exists in different forms, namely, bribery, nepotism, extortion, political and bureaucratic corruption or abuse of power by influential public officials
CPI Report (2018), Vittal and Mahalingam (2004) The gravity of corrupt activities is dependent on the level of morality in society. Corrupt practices are an integral part of routine activities in Pakistan. The level of corruption in Pakistan has surged
Javaid (2010) Grand corruption is widespread in developmental projects, particularly in public sector procurement. Some estimates show that corruption causes some Rs. 200 billion loss to the economy every year
Farooq et al (2013) Corruption impedes economic growth and weakens the institutions. Similarly, Pakistan's economy has seen a sluggish growth due to a rampant increase in the level of corruption
Paredes-Solis et al (2011) People in Pakistan believe that they are forced to pay bribes to obtain public medical services. In the year 2002, 29% of people and in the year 2004, 24% of people were using the country's public health services. Due to inadequate health facilities, people tend to use (who can afford) available private health services
Coleman (2004) Weak governance, corruption and political instability in Pakistan led to unstable economic and social development. Governments have repeatedly failed to lift millions of people from drowning in poverty
Ahmad et al (2013) The primary education system has been neglected in Pakistan. Political interference ends up in corruption, which in turn reduces the financial resources for the education sector, due to which school staff are not well paid and are untrained
World Bank Report (2015), Choudhry (2014) 25% of the population in Pakistan live below the poverty line. Pakistan's multidimensional poverty headcount ratio is 49.4%, while the country has been ranked 145 on the Human Development Index
Khan (2007), WHO (2014) Pakistan has always been criticised for its public spending priorities. The country spends 2.6% of its total GDP on health care and 2.4% on education
UNIGME, WHO (2018), UNFPA (2019) Child mortality rate is 69.31/1000 live births under 5 years and 46,482.00 between 5 and 14 years of age. Also, more than 30% of children are victims of stunted growth due to malnutrition. Pakistan has the highest maternal mortality rate in South Asia due to unavailability of health facilities
Corruption in India
Transparency International (2019) According to Transparency International (2019) Report, India ranks 80 out of 180 countries on the Corruption Perception Index, obtaining 40 points out of 100
World Economic Forum, GCR (2019) Overall institutional performance of India shows a score of 56.8/100 points and India ranks 59 out of a total of 141 countries. The level of organised crimes has a score of 55.0/100 points, placing India at 91 position out of 141 countries. The level of transparency score is 41.0/100 points, which places the country at 66 position among 141 countries
Transparency International India Report (2005) In 2005, 11 public sector departments had been surveyed; 62% of respondents (citizens) said corruption is a serious issue. They shared a personal experience of paying bribes. The study reveals that the common people pay Rs. 210,680 million as bribe per year
HDI Report (2019) and Global Monitoring Report (2014) India ranks 129 with an HDI value of 0.647; 30% of the world's extremely poor people live in India. Corruption is perceived to be one of the main barriers to human development in India
World Bank (2018) and UNICEF/WHO (2009) 37/1000 children die before their fifth birthday; 26% of India's population does not have access to sanitation, which causes diarrhoea in children that becomes a reason of approximately 386,600 child deaths each year
Global Monitoring Report (2014) Corruption is prevalent in the Indian education system; 71% of the population is dependent on the public education system. The amount of money that goes in petty corruption is nearly INR. 41,370 million per annum
Quah (2008) Corruption in India, either grand or petty, is routinely being practiced. In 2008, the World Bank investigated corruption scandals in India's healthcare projects of $568 million. Indian high-ranking public officials defalcate billions of rupees, while street-level bureaucrats are busy stealing millions
Chauchard et al (2019) Data from India shows that politicians rapidly add up to their financial assets after assuming public offices. A public survey was conducted in 2015, which found that respondents linked politicians’ wealth accumulation to corruption
Rose and Peiffer (2018, p. 13) Governmental regulations favour public servants to receive unofficial payments from entrepreneurs who are in need of urgent legal documentation or need it by overlooking legal requirements. Such people influence laws and regulations for self-interest
Cheng and Urpelainen (2019) In India, a corrupt politician tends to finance a road or highway project rather than a school project due to substantial personal monetary benefits in the form of kickback

NAB, National Accountability Bureau

Corruption and public spending
Tanzi (1998) and Mauro (1996) Corruption considerably reduces public spending, and the argument is contentious; one school of thought argues that corruption increases public spending as a percentage of GDP, while another school of thought believes that corruption has no effects on public spending
Shleifer and Vishny (1993) Public spending in corruption-prevalent countries is believed to be less effective; the involved corrupt agents nominate projects which give them more financial benefits in the form of bribes and kickbacks
Tanzi and Davoodi (1997) Public investment on human capital is distorted as a result of corruption, specifically education. Corrupt public officials tend to invest in new construction projects rather than on human development
Delavallade (2006) Public spending is the main tool for human development; curbing corruption must be the main goal of emerging economies to ensure securing an applaudable place in Human Development Index ranking
Sen (1999, p. 275) Corruption is one of the key constraints which makes government policies ineffective and pushes all investments away from lucrative projects; also, it promotes and safeguards the mafia
Chen and Neshkova (2020) Fiscal transparency increases budgetary matters and public sector performance and ensures accountability to curb corruption. More fiscally transparent economies are perceived to be less corrupt
Sviderskyi and Lubentsov (2020) Effects of bad governance exist in every dimension of life, which hampers the development of the modern world. Moreover, it does negatively affect public funds and the public's trust in government officials to control corruption
Machoski and De Araujo (2020) The funds allocated for public health are diverted by public officials, which ultimately leaves effects on public health services and causes reduced economic growth
Impacts of corruption on human development
Akacay and Gebeye (2006) The framework of human development includes the broadening of choices, which is acquired by enhancing human ability through social capital (education, health, nutrition)
Saeed et al (2018) Governance is often correlated with human development (health and education) and per capita income. Countries that are well developed are perceived to be less corrupt due to high per capita income and better ranking in the Human Development Index
Gupta, Davoodi and Tiongson (2000), Kaufamann, Kraay and Zoido-Lobaton (1999) Corruption either makes public services unaffordable or decreases their quality. Nevertheless, empirical studies show that corruption decreases life expectancy and education level and also increases the death rate of children
Akhter (2004) and Tran (2008) Politicians and bureaucrats involved in corruption instigate poverty; corruption affects human development. The mechanism of CC depends on HC, higher literacy ratio and life expectancy
Hu and Mendoza (2013) Good governance, reduced level of corruption and well-functioning bureaucracy bring a breakthrough in controlling mortality rate
Justesen and Bjornskov (2014) The study finds out that poor people are comparatively much more vulnerable to corrupt practices of public officials since these people highly depend on public goods and services due to an increased level of poverty
Buscaglia (2003) Corruption paves the path for organised crimes in every society; there exists a robust relationship between organised crimes and corruption

CC, corruption control; HC, human capabilities

Moreover, a broad consensus exists among the scholars on the fact that corruption diverts public investment from the social sector to capital-intensive projects. Policymakers tend to invest in projects that give monetary benefits in the form of bribes and kickbacks. Such divergence of public investment ends up in low human development, which in turn affects the social human rights of citizens. For results, see Tables 3 and 4.

RQnr 2: What are the policy alternatives to curb corruption in developing countries?

Considering the filthy consequences of corruption, policies to curb corruption have long drawn attention. However, prevalence of the problem in developing countries and the lack of implementation of anti-corruption laws make it challenging to overcome the issue of corruption. Countries’ institutional response is to mitigate corruption by establishing anti-corruption agencies; yet, the problem persists as a result of politicisation of institutions. In this article, we recommend and discuss the analyses of some anti-corruption policies; these policies include political accountability, technological advancement along with decentralised information systems, introduction of social audits and institutional reforms, which need to be implemented to curb corruption in developing countries.

As we discussed above, corruption lowers human development due to less investment in the social sector. However, Doig and Theobald (2000) believe that corruption ends up in taxing the poor, while Bardhan (1997), Lambsdorf (2007) and Murphy et al (1993) believe that it diverts investment from the social sector (health and education) which makes it easy for the corrupt individuals to digest public money. Table 5 contains anti-corruption policy analysis.

Anti-corruption policy analysis References
Political accountability Political accountability is a baseline factor in rooting out corrupt practices; in a well-democratic system, voters are capable of holding politicians accountable for their corrupt behaviour Caillier (2010), Adsera et al (2003) and Rose-Ackerman (1999)
Institutional reforms Countries where corruption is widespread need institutional reform, which means that on a daily basis, operational problems must be improved through control systems, transparency in the system, robust accountability, improved recruitment, training of official staff and a client-friendly appeal system Johnson (1998)
Technological advancement Technological advancement seems to have played a meaningful role in improving transparency and reducing the level of corruption. Providing mobile texting service to the public in order to report corruption cases can have a positive effect on curbing corruption in Africa. However, it needs to have a decentralised information system that can demolish the opportunities to indulge in corruption Ionescu (2013)
Social audits Social audits should be introduced in developing countries to maintain checks at the organisational level. Social audits mean to identify and report organisational problems as well as to enhance organisational performance. Social audits are important in the health sector; in particular, it ensures greater accountability and improves healthcare services Dhaktode (2016) and Cockcroft et al (2008)

RQnr 3: What are the missing points of current research in the field of corruption in developing states? Investigating corruption is often based on quantitative researches, for instance, examining the effects of corruption on economic growth, citizens’ voting behaviour, etc. needs quantitative data. Therefore, research in the field of corruption is dependent on quantitative data. Similarly, this article reviews scientific studies on corruption in the health and education sector that are based on quantitative data. However, qualitative studies do not contribute much in this paper.

Due to the multifaceted nature of corruption, it exists in every society and every sector of an economy and affects all the dimensions of a society. Therefore, corruption has been investigated and researched from different perspectives. For instance, Mauro (1995), Mo (2001) and Jain (2001) reviewed corruption, growth and development. Peters and Welch (1980), McCann and Domınguez (1998) and Klašnja et al (2016) investigated corruption from the perspective of citizens’ voting behaviour. Moreover, Rotberg (2009) and Thachuk (2005) investigated corruption with respect to its global security and world order.

Corruption does not only instigate the issues discussed above, but also hits all aspects of a society. Where corruption has broadly been investigated from an economic and political perspective, little attention has been given to social issues occurring due to corruption in developing societies. In our research, we do not cover the entire social sector of developing countries; rather, we focus on health and education. Furthermore, the theoretical part of this paper classifies and discusses corruption in developing economies in general. However, the results are applicable for the investigated countries (Pakistan and India) only and not for all developing countries.

DISCUSSION

This paper shows that SLR has potential significance to identify and analyse social human rights issues related to corruption. Although systematic review methods have been used to analyse social, economic and political dimensions of corruption, for instance, impact of corruption on the health sector in Africa (Onwujekwe et al 2019), corruption in oil sector (Moisé 2020), effect of corruption on the quality of public delivery service (Molina 2017) and economic impact of corruption in low-income countries (Ugur and Dasgupta 2011). This paper, however, bridges the link between corruption and social human rights through an SLR. Moreover, this paper shows the intensity and threats posed by corruption to health and education sector in developing countries. Results identify factors such as lack of accountability and transparency, misallocation of public funds and protecting the interest of elites; however, such factors contributing to the rise of corruption in developing countries are specific to weak institutional structure. It is, therefore, important to educate all the stakeholders about violation of human rights by corruption and to present policy recommendations that can be helpful in curbing corruption. Furthermore, specific guidance should be given to all the stakeholders; for example, this systematic review shows how and why public spending on health and education can be diverted through corruption and how a state can reduce the level of corruption. Policy recommendations such as social audit may strengthen transparency and accountability mechanisms in developing countries.

Importance for Central European Journal of Public Policy

Central and Eastern European countries suffer from corruption, as Placek et al (2019, 2021), for instance, argue that post-communist countries such as Czechoslovakia and Bulgaria exhibit high level of corruption. These countries were a ‘scarcity’ society ruled by the citizens’ unsatisfied demand for goods and services that compelled citizens to pay bribes to public officials for gaining public goods/services. Such a situation further created a culture of ‘demand and supply of corrupt practices’ within the entire system of governance. This study offers different perspectives for developing countries in terms of comparison if there is any similar path. Therefore, it can be significant for readers and future researchers within the arena of corruption and human rights perspective from Central and Eastern European countries.

CONCLUSION

The issue of corruption has globally taken the pace of interest, but its alarming consequences have overwhelmed the developing world. Corruption affects countries’ social, economic and political dimensions. This paper focuses on the social sector; however, not covering the entire social sector is one of the main limitations of this research. It addresses the consequences of corruption on health and education, leaving room for future research on corruption with respect to its other social impacts. Also, this research does not analyse the political perspective, that is, political-will, which is substantially important to ensure the application of anti-corruption policies. Moreover, results identify the social problems exacerbated by corruption and provide policy recommendations. However, if such (social) issues are addressed and recommended anti-corruption policies are considered for implementation by the developing countries, it may help policy-makers to safeguard citizens’ social human rights and reduce the level of perceived corruption in developing world.

Furthermore, this paper concludes that corruption disproportionately affects social human rights (health and education). The empirical shreds of evidence of Monica et al (2019) show that corruption affects physical health, for instance, mortality and life expectancy rate. According to the National Academies of Sciences, Engineering and Medicine (2018), $445 billion out of $7.35 trillion that is globally allocated to the health sector goes missing every year. Corruption is globally responsible for 140,000 deaths of children below the age of 5. Reduced public spending, insufficient regulations and bad governance result in a low-quality health system. Good governance is significantly important to ensure the provision of sufficient healthcare system. Moreover, corruption in the education sector carries alarming consequences; thriving corruption in the education sector negatively affects societies, for instance, it results in fading trust, low educational quality, production of unqualified graduates and overlooking meritocracy. However, corruption is highly prevalent in the education system of developing countries. Educational corruption needs to be investigated due to its adverse effects in the society (Rumyantseva 2005).

As this study analyses human development (health and education) aspects of corruption consequences, it does not include the effects of corruption on justice and social care system in developing countries. Moreover, this paper reveals that implications of corruption on human rights should drive larger attention to the significance of addressing corruption issues within health and education. Methodologies such as SLR are underutilised to link corruption with human rights specifically. Therefore, I suggest to future researchers to examine the effects of corruption on justice and social care system and the role of civil society organisation in advocating human rights with respect to corruption, using meta-analysis of systematic review.

j.cejpp-2022-0003.tab.001

Theories of corruption Public choice Studies only the decisions taken by individuals, public officials try to maximise their benefit, a decision to take a bribe is a result of rational calculation
Organisational culture theories The cause of corruption lies in group behaviours taking place inside an organisation's structure and culture. The corrupt culture of an organisation determines an individual's corrupt behaviour
Public administration theories Reforms within the sense of the New Public Management undermine traditional functions of the public sector and ultimately have a negative impact on accountability
Collective action problem Corruption arises because agents think that the other agents are also corrupted. Thus, corruption becomes an expected behaviour in a society. Corruption, therefore, becomes a feeding and the most rational strategy

j.cejpp-2022-0003.tab.002

Sources Keywords Interpretation
Web of Science ‘Corruption in developing countries’ AND ‘the effects of corruption in developing countries’ AND ‘implications of corruption in developing countries’ AND ‘human rights implications of corruption’ AND ‘corruption effects on human right’ AND ‘human development’ (‘social implications*’ OR ‘effects*’ OR ‘impacts’ OR ‘influence*’ ‘poverty and corruption’ OR ‘nexus’ OR ‘health indicators’ OR ‘social indicators’ OR ‘bribery’ OR ‘nepotism’ OR ‘embezzlement’ OR ‘political corruption*’ OR ‘bureaucratic corruption’ OR ‘corrupt practices*’) The existence of keywords was confirmed in the resulting articles
This search resulted in 61 studies

Google Scholar ‘Corruption in developing countries’ AND ‘the effects of corruption in developing countries’ AND ‘implications of corruption in developing countries’ ‘human rights implications of corruption’ AND ‘corruption effects on human right’ AND ‘human development’ (‘social implications*’ OR ‘effects*’ OR ‘impacts’ OR ‘influence*’ ‘poverty and corruption’ OR ‘nexus’ OR ‘health indicators’ OR ‘education indicators’ OR ‘bribery’ OR ‘nepotism’ OR ‘embezzlement’ OR ‘political corruption*’ OR ‘bureaucratic corruption’ OR ‘corrupt practices*’) The existence of keywords was confirmed in the resulting articles
This search resulted in 147 studies

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Corruption in Pakistan
CPI Report (2019) Pakistan ranks 120 out of 180 countries on the Corruption Perception Index, scoring 32 points out of 100 points
World Economic Forum, GCR (2019) Overall institutional performance of Pakistan has a score of 47.7/100 points and the country ranks 107 out of a total of 141 countries. The level of organised crimes has a score of 47.4/100 points, placing the country at 112 rank out of 141 countries. The level of transparency score is 33/100 points, which places the country at 101 position among 141 countries
Ali (2020) Politicisation of state institutions is the biggest problem in Pakistan. NAB fails to investigate high-profile corruption cases due to political influence. Panama case has not been deeply investigated
Verkaaik (2001) During the last three decades, Pakistan's prime ministers have been disqualified on corruption charges. In the 1990s, the accountability commission was introduced, which functioned as a financial check and balance instrument, yet failed to perform its function
Bashir et al (2011) It is perceived that getting work done without having a public officer bribed is not possible. Research shows that 82% of the government employees either saw or experienced misconduct in the last 1 year and 90% people do not report corrupt activities
Anwar and Bilquees (2003) Bad governance affects the poor class of the society by various means, including income inequality and reduced public spending on human development
Miankhail (2009) Due to the lack of accountability and transparency in the public sector of Pakistan, misallocation of resources is the key problem. Public funds have been distorted, protecting the interest of elites
Khan (2016) Having colonial roots and due to political instability (due to civil-military clashes) and high political interference, state institutions have become shallow and no concrete course of action is taken to combat corruption
Chene (2008) In Pakistan, corruption exists in different forms, namely, bribery, nepotism, extortion, political and bureaucratic corruption or abuse of power by influential public officials
CPI Report (2018), Vittal and Mahalingam (2004) The gravity of corrupt activities is dependent on the level of morality in society. Corrupt practices are an integral part of routine activities in Pakistan. The level of corruption in Pakistan has surged
Javaid (2010) Grand corruption is widespread in developmental projects, particularly in public sector procurement. Some estimates show that corruption causes some Rs. 200 billion loss to the economy every year
Farooq et al (2013) Corruption impedes economic growth and weakens the institutions. Similarly, Pakistan's economy has seen a sluggish growth due to a rampant increase in the level of corruption
Paredes-Solis et al (2011) People in Pakistan believe that they are forced to pay bribes to obtain public medical services. In the year 2002, 29% of people and in the year 2004, 24% of people were using the country's public health services. Due to inadequate health facilities, people tend to use (who can afford) available private health services
Coleman (2004) Weak governance, corruption and political instability in Pakistan led to unstable economic and social development. Governments have repeatedly failed to lift millions of people from drowning in poverty
Ahmad et al (2013) The primary education system has been neglected in Pakistan. Political interference ends up in corruption, which in turn reduces the financial resources for the education sector, due to which school staff are not well paid and are untrained
World Bank Report (2015), Choudhry (2014) 25% of the population in Pakistan live below the poverty line. Pakistan's multidimensional poverty headcount ratio is 49.4%, while the country has been ranked 145 on the Human Development Index
Khan (2007), WHO (2014) Pakistan has always been criticised for its public spending priorities. The country spends 2.6% of its total GDP on health care and 2.4% on education
UNIGME, WHO (2018), UNFPA (2019) Child mortality rate is 69.31/1000 live births under 5 years and 46,482.00 between 5 and 14 years of age. Also, more than 30% of children are victims of stunted growth due to malnutrition. Pakistan has the highest maternal mortality rate in South Asia due to unavailability of health facilities
Corruption in India
Transparency International (2019) According to Transparency International (2019) Report, India ranks 80 out of 180 countries on the Corruption Perception Index, obtaining 40 points out of 100
World Economic Forum, GCR (2019) Overall institutional performance of India shows a score of 56.8/100 points and India ranks 59 out of a total of 141 countries. The level of organised crimes has a score of 55.0/100 points, placing India at 91 position out of 141 countries. The level of transparency score is 41.0/100 points, which places the country at 66 position among 141 countries
Transparency International India Report (2005) In 2005, 11 public sector departments had been surveyed; 62% of respondents (citizens) said corruption is a serious issue. They shared a personal experience of paying bribes. The study reveals that the common people pay Rs. 210,680 million as bribe per year
HDI Report (2019) and Global Monitoring Report (2014) India ranks 129 with an HDI value of 0.647; 30% of the world's extremely poor people live in India. Corruption is perceived to be one of the main barriers to human development in India
World Bank (2018) and UNICEF/WHO (2009) 37/1000 children die before their fifth birthday; 26% of India's population does not have access to sanitation, which causes diarrhoea in children that becomes a reason of approximately 386,600 child deaths each year
Global Monitoring Report (2014) Corruption is prevalent in the Indian education system; 71% of the population is dependent on the public education system. The amount of money that goes in petty corruption is nearly INR. 41,370 million per annum
Quah (2008) Corruption in India, either grand or petty, is routinely being practiced. In 2008, the World Bank investigated corruption scandals in India's healthcare projects of $568 million. Indian high-ranking public officials defalcate billions of rupees, while street-level bureaucrats are busy stealing millions
Chauchard et al (2019) Data from India shows that politicians rapidly add up to their financial assets after assuming public offices. A public survey was conducted in 2015, which found that respondents linked politicians’ wealth accumulation to corruption
Rose and Peiffer (2018, p. 13) Governmental regulations favour public servants to receive unofficial payments from entrepreneurs who are in need of urgent legal documentation or need it by overlooking legal requirements. Such people influence laws and regulations for self-interest
Cheng and Urpelainen (2019) In India, a corrupt politician tends to finance a road or highway project rather than a school project due to substantial personal monetary benefits in the form of kickback

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Corruption and public spending
Tanzi (1998) and Mauro (1996) Corruption considerably reduces public spending, and the argument is contentious; one school of thought argues that corruption increases public spending as a percentage of GDP, while another school of thought believes that corruption has no effects on public spending
Shleifer and Vishny (1993) Public spending in corruption-prevalent countries is believed to be less effective; the involved corrupt agents nominate projects which give them more financial benefits in the form of bribes and kickbacks
Tanzi and Davoodi (1997) Public investment on human capital is distorted as a result of corruption, specifically education. Corrupt public officials tend to invest in new construction projects rather than on human development
Delavallade (2006) Public spending is the main tool for human development; curbing corruption must be the main goal of emerging economies to ensure securing an applaudable place in Human Development Index ranking
Sen (1999, p. 275) Corruption is one of the key constraints which makes government policies ineffective and pushes all investments away from lucrative projects; also, it promotes and safeguards the mafia
Chen and Neshkova (2020) Fiscal transparency increases budgetary matters and public sector performance and ensures accountability to curb corruption. More fiscally transparent economies are perceived to be less corrupt
Sviderskyi and Lubentsov (2020) Effects of bad governance exist in every dimension of life, which hampers the development of the modern world. Moreover, it does negatively affect public funds and the public's trust in government officials to control corruption
Machoski and De Araujo (2020) The funds allocated for public health are diverted by public officials, which ultimately leaves effects on public health services and causes reduced economic growth
Impacts of corruption on human development
Akacay and Gebeye (2006) The framework of human development includes the broadening of choices, which is acquired by enhancing human ability through social capital (education, health, nutrition)
Saeed et al (2018) Governance is often correlated with human development (health and education) and per capita income. Countries that are well developed are perceived to be less corrupt due to high per capita income and better ranking in the Human Development Index
Gupta, Davoodi and Tiongson (2000), Kaufamann, Kraay and Zoido-Lobaton (1999) Corruption either makes public services unaffordable or decreases their quality. Nevertheless, empirical studies show that corruption decreases life expectancy and education level and also increases the death rate of children
Akhter (2004) and Tran (2008) Politicians and bureaucrats involved in corruption instigate poverty; corruption affects human development. The mechanism of CC depends on HC, higher literacy ratio and life expectancy
Hu and Mendoza (2013) Good governance, reduced level of corruption and well-functioning bureaucracy bring a breakthrough in controlling mortality rate
Justesen and Bjornskov (2014) The study finds out that poor people are comparatively much more vulnerable to corrupt practices of public officials since these people highly depend on public goods and services due to an increased level of poverty
Buscaglia (2003) Corruption paves the path for organised crimes in every society; there exists a robust relationship between organised crimes and corruption

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Anti-corruption policy analysis References
Political accountability Political accountability is a baseline factor in rooting out corrupt practices; in a well-democratic system, voters are capable of holding politicians accountable for their corrupt behaviour Caillier (2010), Adsera et al (2003) and Rose-Ackerman (1999)
Institutional reforms Countries where corruption is widespread need institutional reform, which means that on a daily basis, operational problems must be improved through control systems, transparency in the system, robust accountability, improved recruitment, training of official staff and a client-friendly appeal system Johnson (1998)
Technological advancement Technological advancement seems to have played a meaningful role in improving transparency and reducing the level of corruption. Providing mobile texting service to the public in order to report corruption cases can have a positive effect on curbing corruption in Africa. However, it needs to have a decentralised information system that can demolish the opportunities to indulge in corruption Ionescu (2013)
Social audits Social audits should be introduced in developing countries to maintain checks at the organisational level. Social audits mean to identify and report organisational problems as well as to enhance organisational performance. Social audits are important in the health sector; in particular, it ensures greater accountability and improves healthcare services Dhaktode (2016) and Cockcroft et al (2008)

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