Corruption and Totalitarianism - Assignment Example

Name: Institution: Course: Date: Q1. Corruption is often defined as the misuse of public office for personal gain. This form of misuse is often in different forms and is often characterized by activities such as bribery, extortion, nepotism, embezzlement, falsification of available records and pilferage among other actions (Neild 10). Inasmuch as corruption is often attributed to the public sector it also affects all the other sphere of governance which includes political parties and private organizations (Neild 10). Corruption in many countries is considered as a governance issue. This is because it affects the effective functioning of institutions and different aspect of management in the society. Countries have in place varied forms of political, social, judicial and economic mechanisms through which it can be handled (Lecture notes 2 43). In most developed countries such as China, the US, Russia and the United Kingdom these mechanisms are considered as formal and informal procedures which are reinforced by laws and policies which propagate the values of transparency and accountability in government operations (Lecture notes 2 43). According to the Annual Corruption Perception Index published by Transparency International, countries vary in terms of their degree of corruption. Companies from Russia and China for instance are more likely to be the most corrupt when conducting business in foreign markets (Lecture notes 2 43). Netherland and Switzerland are considered as the least corrupt countries (Lecture notes 2 44). The UK was ranked eight just ahead of the US and France. The degree of corruption in different countries is highly dependent on the existence of laws and policies that regulate corrupt, effective implementation of the available laws and policies, the frequency of engaging in different forms of corruption and the level by which different countries in tolerate instances of corrupt activities (Lecture notes 2 44). The procurement sector is the most prone sector to corruption in different countries. This is largely the sector is highly characterized by instances of bribery whenever companies compete to win contract from the government to execute different jobs which include waste collection and construction jobs (Lecture notes 2 44). Government contracts are often large and relatively complex and they require the development of subcontract. These sub-contracts and the complex nature of the contacts make it easier to inflate costs and hide inappropriate payments hence high levels of corruption in the procurement sector (Lecture notes 2 44). The United States through the Congress in 1977 introduced the Foreign Corrupt Practices Act (FCPA) which was aimed at reducing instances of corruption in the US (Lecture notes 2 44). Through this Act the US government forbids its citizens in different sectors of the economy or any other stakeholder acting on behalf of a business entity form engaging in bribery (Lecture notes 2 45). This form of bribery is inclusive of the payment of money or anything that is considered of value to a foreign official as a way of influencing the official into acting or deciding in such a way that he is in violation of his lawful responsibility (Lecture notes 2 44). To ensure that corruption is mitigated in the US, FCPA imposes record keeping requirements which include the availability of reasonable details in books and records that are a reflection of accurate transactions. In addition the Act requires that companies engage in internal control measures which ensure that transactions are not only easy to tract but are also protected from any form of manipulation (Lecture notes 2 45). Q2 Totalitarianism is a political ideology that is descriptive of a system of government in which a single political party monopolizes all the political power and is also involved in exercising complete authority over its citizens and their activities (Cernak 12). A totalitarian regime is often characterized by a government taking the total control of all the aspects that are definitive of an individual’s life including both civil and political rights. Most totalitarian regime in the world can be attributed to have existed in the period following the First World War (Cernak 14). Political ideologies that were propagated by different European countries were definitive of totalitarian regimes. The Soviet Union for instance was under Communism, Italy was governed by Fascism while Germany under Hitler was governed by the principles of Fascism (Cernak 14). These regimes were considered brutal to their citizens since thy neglected individual human rights and civil liberties. Totalitarian regimes are typically secular and order is imposed through military power. In addition, these regimes are governend by a single party or individual monopolized power. They lack constitutional guarantees and they do not recognize or permit opposition (Lecture notes 2 25). Totalitarianism presents numerous political risks. A political risk is the risk that an investment’s returns could suffer as a result of political changes or instability in a country, instability affecting investment (Lecture notes 1 1). The form of political risk that is represented by totalitarianism include high levels of corruption which result in procurement difficulties, work stoppages and damage of property which is a result of unstable political environment. In addition other risks include shipment delays due to corrupt activities (Lecture notes 2 25). There are several factors that contribute to the decline of centrally planned economies. Conflicts and violence for instance negatively affects centrally planned economies. These vices emanate from the resentment of citizens against their government, they can also emanate from territorial disputes and civil wars (Lecture notes 2 26). Conflict and violence are damaging to economies since they reduce the ability of an economy to obtain material and equipment that are essential in the manufacture and distribution of products. In addition, it impedes the ability of different sectors of the economy to protect the lives of employees and the assets (Lecture notes 2 26). Terrorism and kidnaping initiatives also affect centrally planned economies. This is because assets and investors are considered to be at risk in countries that are highly affected by acts of terrorism. Governments are required to invest much of their resources in the improvement of security rather than investing of factors that contribute to economic growth (Lecture notes 2 26). Political environment of a country is also an influential factor in a centrally planned economy. This is because the type of governance and the ideologies propagated will be definitive of the type of market economy that a country commands (Lecture notes 2 26). In democratic environment economies are often considered to be liberal and this allows for effective economic practices characterized reasonable import and export tariffs. This is different from totalitarian regimes where the economy is highly regulated by the government and these tariffs are defined based on the interests of the ruling party. In some instances these government also control production in different sectors of the economy. Works cited Cernak, Linda. Totalitarianism. Edina, Minn: ABDO Pub. Co, 2011. Lecture notes 1 Lecture notes 2 Neild, Robert. Public Corruption: The Dark Side of Social Evolution. London: Anthem Press, 2002. Read More