Does Corruption Have Any Impacts on Economic Growth

statistics-1445457_640There have been various studies that have been done to determine whether corruption has any effects on economic growth. Most research carried out by international organizations such as the World Bank claim that corruption hampers economic growth.

According to World Bank, countries that have a high level of corruption have very low average income. In addition, the infant mortality rate is these countries are about three times higher. Also, the literacy rate is about 25 percent lower.

Corruption affects resource allocation in two main ways. First, it can change private investor’s valuation of the relative advantages of various investments. For instance, corruption induced change affect prices of goods as well as factors of production. Second, corruption can cause misallocation of resources when decisions of who invest, where to invest and when to invest public funds are made by corrupt government departments.

Corruption in the way contracts is awarded, economic activities are carried out, and deals are made, leads to oligopolies or monopolies in the economy. Those people who use their money or connections to bribe government officers can market mechanisms and policies to ensure they are dominating a particular market.

Other negative effects of corruption include uneven distribution of wealth, low motivation for technology advancement, and low attractiveness for foreign investors and low-quality healthcare provision

References

https://www.weforum.org/agenda/2015/05/how-does-corruption-affect-economic-growth/

http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0719-04332012000200005

http://www.investopedia.com/articles/03/042303.asp

Political Interference by Foreign Donors

The Bolivian President declared during May Day that he was stopping the United States Agency for International Development (USAID) for conniving with his government and therefore creating controversies. This decision portrayed an existing ideological conflict between the Bolivian government and Washington D.C.

Russians also accused USAID meddling with its political affairs while Egypt charged some Americans of engaging in illegal activity, an act that almost drove out a majority of the Americans. These cases show an increased number of governments who are fighting against assistance from abroad that they deem too political for their well-being.

Foreign assistance is a sensitive topic since it is construed to be intrusive. This is so because one country hopes to improve the basic conditions in another state by funding the requisite projects and providing the technical resources.

In order to quell this aggression and to perform their duties effectively, the donor organizations need to address the practical challenges and understand the political analyses of the country they hope to help. This will help them to identify their crucial entry points that will help them create new developments.

Can Political Instability Hurt Economic Development?

Political instability occurs when a government collapses either because of rampart competition or conflict between many political parties.

Political instability and economic growth are deeply interrelated. On the one hand, unstable political environment may reduce investment and economic development. On the other hand, poor economic performance leads to political unrest and government collapse.

Many citizens want their country to be politically stable. If a country does not need to worry about radical changes of regimes and conflicts, the people can focus on working, investing and saving. Political stability is also a factor that can reduce corruption.

However, they are some people who think that political stability does not only demoralize the public but also precludes any form of change. Ingenuity and innovation take a backseat. Such people want change in all sectors of life (business, culture, politics) in order to have a happier future through better opportunities. Although change is risky, it is essential. Political stability can be in the form of stagnation and complacency that does not allow competition. In this case, political stability means lack of competition for the governing elite. Consequently, freedoms such as freedom of religion, freedom of press and access to internet are truncated.

In short, not all forms of political stability are development friendly. We should encourage a stability that translates into good governance.

Alphonse Mucha

 

Alphonse Mucha is a famous Czech artist who is famous for his Art Nouveau works. He is known to be one of the early founders of the genre,Art Nouveau, which later was sent overseas to Japan and influenced the animation industry.

Mucha’s works were mostly consisted of women, flowers, plants, and circular shapes. He had his own style of working- When he was once  requested to draw a poster(in those days when Mucha lived, printing technology weren’t developed, so posters had to be drawn by hand) he boldly changed the format of the poster. The original posters were made by attatching 2 big pieces of paper horizontally, but Mucha chose to stick the papers vertically so the paper became long enough for him to draw the entire figure of the main actor. This style of posters were never introduced to the world before, so the cheif officer did not like it but because they did not have time to make another one, they had to use Mucha’s poster.

However, as far as they were concerned about it things went very well. People were in love with

What can we do to Reduce Poverty and Grow the Middle Class?

The number of people living in poverty is increasing in the world. Furthermore, low and middle-income workers have not experienced income growth over the past ten years, as the benefits from economic growth have gone mainly to the richest people.

With inequality and flat incomes stuck at high levels, we might assume that economic insecurity is normal and nothing can be done to correct it. However, nothing is inevitable about stagnant incomes and elevated poverty. They are direct consequences of poor policies choices that put wealth into the hands of few people. Here are five steps that governments should take to cut poverty, expand the middle class, and boost the economic security.

Create jobs

The best way out of poverty is a good job. To kick-start job growth, the governments should invest more in job-creation strategies such as developing renewable sources of energy, building and rebuilding infrastructure, renovating abandoned housing and make other investments that create jobs and boost economy.

Raise the minimum wage

In the 1960s, a worker earning the minimum wage could lift about three families out of poverty in America. There is a lot of evidence that increasing minimum wage can boost the economy and reduces poverty.

. Support pay equity

There is a lot of salary disparity in many countries. Some people are peanut earners while other are super-earners. Salary disparity continuously widens the gap between the poor and the rich. Men and women should also receive equal pay for equal work. Closing the gender wage gap can significantly reduce poverty levels.

Holocaust

Hitler hated the Jews and spread the idea that the Jews are a grody and an inferior race and that they should be get rid of this world because he thought they were useless. He instigated the people to make the people agree with his words by his attractive speeches and his power. Finally, Hitler put into his horrible plans into action which is the Holocaust(the term holocaust just means massacre, but in this essay, I’m going to use it to explain the specific term for the incident that happened in Germany by Hitler) that happened from 1941 to 1945 was carried out by the Nazis who followed the rules of Hitler.

 The Holocaust is remembered as one of the brutal genocides in the world history. During this horrendous time, two-thirds of the Jews who lived in Europe(which was approximately 9million) were killed and five million non-Jewish victims were additionally murdered by the mass murderers of the Nazis. The Nazis not only killed Jews during the Holocaust-they also captured and eliminated the disabled, the elderly, children, gypsies, homosexuals, Jehovah’s

Witnesses, and people who didn’t agree with their Nazism. When they first picked out the useless ones-such as the disabled or children-they began to send people to concentration camps away from their homes in trucks, against their wills.

 When all the Jews arrived at the concentration camps, they were forced to take off everything they were wearing and had to change into a uniform with blue stripes-not a single thing they possessed were allowed for them to take it into the camps. Many of the people got uniforms which were not their size-then, they had to change it between them themselves. Then, they were compelled to cut of their own hair bald. This was a meaning of submission of the Jews and to daunt the people. Everyone became alike-no matter rich, poor, or old.

 After the Jews were made identical with one another, they had to follow the daily routines that were set by the Nazis which were designed to reduce the number of the people in the concentration camps. The day of the prison inmates started with the Appell(the daily roll call) early in the morning. While a long list of orders and instructions were read out, the prisoners had to stay completely still in a straight line to be counted. When the kapos(prison inmates who were selected to help run the camps) counted the numbers wrong, the inmates were beaten up by the SS(Schutzstaffel/Storm troopers). Then, they were sent to do physical labour, such as mining, factory work, and construction which resulted high mortality rates because of the physical exhaustion, tiny portions of food, and the harsh treatment they received from the guards or some kapos.

 The living conditions were also filthy as it was like working conditions. 2000 prisoners had to share the toilet, which simply had a wooden board with holes which are made for the seats. The prisoners couldn’t even dream about privacy or sanitation in the camps.  They were never provided with clean water for washing, nor soap, and of course, they had to wear the same clothes for weeks or even months.

 ‘Unofficial’ killings happened frequently by the guards. When those  killings happened, they were usually reported with the reasons such as “trying to escape”, “assaulting a guard”, “sabotaging production”, “inciting prisoners to revolt” or with (fake)health issues such as “weak heart” or “interruption of circulation”. There were also killings happening systematically. Prisoners of war selected by Gestapo officials or members of the national resistance groups were counted as extremely dangerous ones and were specially selected to be killed. They were usually murdered in gas chambers at the killing centers. They were killed within 24hours from their arrival, without being recorded as a prisoner. This was considered as a very efficient way of killing people.

 The Hitler could’ve been seen as a national hero for the German during the war times, but as we look back at the past from the present point of view, we all know that it is wrong, and is needed to be blamed. I strongly think that if there are people who still survived, who is related to this merciless, insane killing, they should apologize to the families of the victim and survivor so that they never forget the wrongdoing they had done in the past.