corruption in turkey - needs correction

Running head: CORRUPTION 1

CORRUPTION 8

Corruption in Turkey

Shane North

Wilmington University

Corruption in Turkey

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.

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).

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).

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.

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.

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 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.

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

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.

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 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.

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

Foreign Direct Investment

Foreign Direct Investment

2010 2011 2012 2013 2014 2015 2016 2017 2018 9.099000 16.182000 13.744000 13.563000 13.337000 19.274000 13.950000 11.546000 13.044000