corruption in turkey - needs correction

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Grading criteria: research draft Maximum Points

(1) Topic working title and short description of key issue, 2 - 3 paragraphs Perfect

5/5

(2) A completed outline that will guide you in your work for the final paper. Do NOT use Word’s outline feature No outline.

0/5

(3) Two paragraphs for each section of the paper: 4 items i. A problem, question or issue bearing on U.S. financial markets and institutions that is historically significant or currently important. ii. research that demonstrates the validity and applicability of the problem, question or issue in the field. iii. a solution to the problem, question or issue or, if no solution is available, a discussion of alternatives that may be utilized. iv. quantitative data specific and relevant to the problem, question, or issue. The first four pages continue the description of the key issue. It needs to follow this rubric’s format (use the final paper rubric for your rewrite). As in #4 below, the quantitative data must be significantly increased. More research into the issue is needed.

3.5/5

(4) Description of and/or examples of financial data used to support narrative analysis There are two dollar values and no percent values. These financial figures need to be greatly increased in this financial paper.

2/5

(5) A minimum of 8 cited research sources relevant to the topic and from acceptable sources Dimant & Tosato describe generic corruption themes but do not address Turkey. This is a weak reference and should be replaced with a Turkey-centric one. The reason for this is that this paper is targeted to the CEO and Board of Directors. It should be assumed that they already know what bribery, embezzlement and corruption are. It is fine in the first paragraph as part of the introduction, but not after that point.

3.75/5

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There are 9 sources listed, of which 7 are used. (6) Perfect spelling, punctuation, grammar; APA where needed; concise business-style writing* *mistakes of this nature repeated throughout the research paper could result in a greater than 5% deduction There are minor issues listed below.

4.5/5

Total Paper submitted after the deadline (-5%, 1.5 points)

18.75 -1.5

17.25/30

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Corruption in Turkey

I. Definition of Corruption

Corruption is relatively widespread in Turkey and mainly prevalent in public organizations.

To understand corruption in Turkey, it is first essential to understand the meaning of the word.

Corruption can generally be defined as form of dishonest activity that is performed by an individual

or an organization in a position of power in exchange for an illicit personal benefit (Dimant &

Tosato, 2018). Corruption activities can occur in many forms such as bribery or embezzlement of

resources. This problem is generally a complex political, social, and economic issue that affects

all nations in the world. The existence of corruption weakens democratic institutions and economic

development in the places that it is rampant. Turkey is one of the countries that is affected by a

significant level of corruption. This paper evaluates the types, effects, and solutions to corruption

in Turkey.

a. Bribery

Bribery is an act of receiving or giving something valuable, usually financial related, in

exchange for an action or some form of influence. In political corruption, bribery occurs when a

government official is offered or receives something valuable such as money in exchange for the

use of their official powers in a way that is unethical or illegal (Dimant & Tosato, 2018).

b. Embezzlement

Embezzlement refers to the misuse or theft of public or entrusted funds. In the government

setting, embezzlement occurs when a public official uses funds dedicated for official duties for

personal use or other responsibilities for which the funds were not designated (Dimant & Tosato,

2018).

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Political Structure of the State and Corruption Relationship

The negative effects of political corruption on political institutions are undeniable. However,

research has shifted focus on determining how these political institutions promote the occurrence

of corruption. Gerring and Thacker (2004) found that the arrangement of political institutions in a

country that can either promote or diminish political corruption. Turkey’s bureaucratic political

structure has played a role in the promotion of corrupt activities.

a. Effect of Bureaucratic Structures

Turkey has a parliamentary republic political system with the holder of executive powers being

the president and the Grand National Assembly of Turkey being responsible for the development

of rules by which all political institutions are run. As a result of this system, most government

institutions in Turkey are run by bureaucratic systems. Adherence to official rules and too many

formalities in performing government official procedures creates an avenue for people to perform

corruption in the form of bribery (Dimant & Tosato, 2018). It is not uncommon to have people

bribe government officials to skip the excessive procedures they would otherwise have to undergo

if they ethically and honestly follow the government processes.

b. Weakening Political Control

The 2016 Transparency International’s Corruption Perception Index ranked Turkey as the 75th

least corrupt country out of 176 countries. This ranked reduced to 78th in the 2017 measure by the

same organization. This implies an increasing perception of Turkey as a corrupt country. This

phenomena could be a result of the government’s weakening control over the corrupt activities

that occur within government institutions. Turkey’s fight against corruption is mainly protected by

the Penal Code. However, the Corruption Assessment Report of Turkey done by Cengiz et al.

(2014) found that the implementation of this code, especially in relation to the powerful people in

Commented [ASL4]: These sections, in a generic sense, are interesting but do not describe specific Turkey’s situation. Dimant & Tosato describe generic corruption themes but do not address Turkey. This is a weak reference and should be replaced with a Turkey-centric one.

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Commented [ASL6]: See Dimant and Tostato comments.

Commented [ASL7]: 81 in 2017 https://www.transparency.org/news/feature/corruption_perce ptions_index_2017#table 78 in 2018 https://www.transparency.org/cpi2018 Use this as a citation and Reference.

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the country is significantly weak. With weak government control over corruption, there is likely

to be increased cases of abuse of power by officials working in government organizations.

Corruption-Economic Growth Relationship

Corruption has a negative impact on the economy of Turkey. Corruption is a big constraint to

economic growth and development in all the countries in which it is a problem. This issue affects

the effectiveness of public investments, it stunts economic growth, and increases the risk of

poverty in a country.

Effects on Investments

Corruption reduces investment inflows from both local and foreign investors. A high level

of corruption in a country discourages local and foreign direct investments into public and private

projects that would help to grow and develop the economy of that country. Turkey is an example

of an economy whose investments have reduced at a significant rate because of corruption scandals

(Simet et al., 2015). A comparison of foreign investment in Turkey in the last decade shows a

significant decline; some of the declining periods coincide with corruption scandals that have

occurred in the country. Figures from the World Bank show a significant drop in foreign direct

investment since 2005. In 2007, the country had foreign investment totaling to over $22.047

billion. This value has since reduced to around $13 billion (World Bank, 2019). The graph below

summarizes the country’s foreign investment for the past ten years.

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Commented [ASL10]: Foreign Direct Investments (FDI)

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Source: World Bank (2019)

The fluctuations of foreign direct investment in turkey are not entirely caused by corruption, but it

plays a major role in discouraging investors from dealing with the Turkish government and private

organizations (Simet et al., 2015). .

Effects of Income Distribution and Poverty

Corruption is also responsible for widening the socioeconomic disparity in Turkey. A high

rate of corruption prevents effective income redistribution through effective allocation of

resources. The relationship between corruption and inequality in a society is one that has been

largely investigated. Dwiputri, Arsyad, & Pradiptyo (2018) found that corruption and income

inequality are directly proportional. A country with a high degree of corruption is a likely to have

a higher level of income inequality. The relationship between corruption and income distribution

is closely related to the relationship between corruption and economic growth. When corruption

prevents the efficient allocation of funds to important public amenities, it denies the

0.

5.

10.

15.

20.

25.

2010 2011 2012 2013 2014 2015 2016 2017 2018

Foreign Direct Investment

Foreign Direct Investment

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underprivileged people in the society access to the resources that would help them to increase their

income.

II. Measures against Corruption

Corruption is a challenging problem to manage in any society. There are many challenges that

make it hard to completely eradicate the occurrence of dishonest activities in positions of power.

However, there are some steps that can be taken to discourage corrupt government officials and to

notice corrupt activities in time for action to be taken.

One of the strategies to deal with corruption in the public sector is to implement measures of

transparency. Transparency is essential in public financial management. Transparency is

fundamental in public management because it promotes integrity and accountability (Heimann &

Pieth, 2017). This guarantees legal assurance of all financial transactions that take place in the

public system. Therefore, people in power are discouraged for engaging in any activities that

would be viewed as illegal or unethical. It is recommended that Turkey implements stronger

policies to ensure stronger transparency in the management of public funds.

III. Conclusion

In conclusion, corruption is a significant political, social, and economic issue affecting today’s

society. This is a problem involving the abuse of power for personal gain. People engage in

corruption through bribery and embezzlement of public funds among other ways. This paper has

demonstrated that corruption is a problem for Turkey. The country’s investments, economic

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development, and level of income inequality have been negatively affected by the high rate of

corruption cases occurring in the country.

References

Boussalham, H. (2018). The Consequences of Corruption on Economic Growth in Mediterranean

Countries: Evidence from Panel Data Analysis.

Cengiz, Z. Pelin Y., Dilek, E., Özdemir, H. Özhabeş R. B., Tarhan Ayşe Ü. (2014) Corrupion

assessment report. Retrieved from:

https://seldi.net/fileadmin/public/PDF/Publications/CAR_Turkey/CAR_Turkey_English_

Final2.pdf

Corke, S., Finkel, A., Kramer, D. J., Robbins, C.A., and Schenkkan, N. (2014). Democracy in

Crisis: Corruption, Media, and Power in Turkey. Retrieved from:

https://freedomhouse.org/sites/default/files/Turkey%20Report%20-

%20Feb%203%2C%202014.pdf

Dimant, E., & Tosato, G. (2018). Causes and effects of corruption: what has past decade's

empirical research taught us? A survey. Journal of Economic Surveys, 32(2), 335-356.

Dwiputri, I. N., Arsyad, L., & Pradiptyo, R. (2018). The corruption-income inequality trap: A

study of Asian countries (No. 2018-81). Economics Discussion Papers.

Gerring, J., & Thacker, S. C. (2004). Political institutions and corruption: The role of unitarism

and parliamentarism. British Journal of Political Science, 34(2), 295-330.

Heimann, F., & Pieth, M. (2017). Confronting corruption: past concerns, present challenges, and

future strategies. Oxford University Press.

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Commented [ASL19]: Boussalham is not used in the paper.

Commented [ASL20]: https://www.preprints.org/manuscri pt/201802.0065/v3 Note that this is a working paper which means that it has not been published anywhere. This means it is a draft paper and is not an acceptable resource.

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Commented [ASL23]: Dimant & Tosato describe generic corruption themes but do not address Turkey. This is a weak reference and should be replaced with a Turkey-centric one.

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Simet, G. F., Lungu, T., Müller, C., & Karassavoglou, A. (2015). The Impact of Turkey's Current

Corruption Crisis on ITS Economy. Procedia Economics and Finance, 19, 91-100.

World Bank (2019). Foreign Direct Investment, net flows-Turkey. Retrieved from:

https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD?locations=TR

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