ABSTRACT
Corruption is perceived as one of the most serious threats to society and to good governance. Corruption decreases the quality of the public sector in many areas and can trigger civic unrest (Brown et al. 2011; Pellegata 2012). Corruption distorts the formal system of rules and governance (Scott 1972, p. 2). Moreover, as Karklins adds (2005, p. 4), corruption involves the loss of equal access to public power and position, which leads to a loss of public trust and belief in the political system. Corruption is also dangerous from an economic point of view. It can be a barrier to economic growth (World Bank [WB] 1997b); it also negatively impacts the ratio of investment to gross domestic product (GDP) (Mauro 1995; WB 1997a) and the level of foreign investment (Wei and Wu 2001). Corruption can also contribute to an uncertain business climate, can hold back state reform and can nourish organized crime (Rose-Ackerman 1999, p. 17).
