Corruption continues to be an underlying problem in many countries. From the grass root level to the highly placed organizations, the issue has markedly perpetuated. This has served as an obstacle to worldwide development. Corruption is very grievous and has been one of the reasons behind the rise in poverty levels in developing countries. As a result, corporate illegality has drawn the focus of many non-governmental organizations. However, there is no much change recorded, and to some extent, the not for profit organizations have become compromised. A report by the African Union highlighted that 25 percent of Africa’s gross domestic product is lost annually due to corruption (Sandbrook, 20120. Corruption is in different forms such as bribery, embezzlement, fraud, among others and can be small scale or grand scale. This illegal activity can be performed by even the very least an ordinary citizen. In developing countries, the act of corruption is mostly political. This is where the rulers subvert public resources for private gains. This issue has made most citizens endure a slimy pit of despair attributed to poverty and underdevelopment in the hands of the corrupt leaders. Despite the many initiatives by both the national and international bodies to eradicate corruption, the practice is still pervasive in most developing countries.

The literature on Corruption and Financial/Corporate Illegality in Developing Countries

In the field of political science, the focus of corruption is on the aspects of power. In African countries, corruption emanates from unfitting institutional arrangements. According to Sandbrook, the neopatrimonialism school of thought explains how African politics have been used by political elites to promote corruption (2012, 42). The politicians monopolize power and in so doing acquisition materials during their term of the ruling. To make matters worse, the politicians strategically place persons who are close relatives or friends to do their bidding (Klein Haarhuis&Leeuw, 2004, 550). This institutionalized arrangement acts as a provision meant to perpetuate the concealment of funds to the point that it is not detected. The forms of corruption that transpire are such as fraud, embezzlement of funds, among others that increase their private possessions.

Various acts are prevalent forms of corruption. One of the most pervasive practices is bribery where people offer money or other services to ask for a favour or something else. Further, embezzlement of resources happens where a person uses a position of guardianship to steal funds. Favouritism is a widespread practice that occurs when people use their positions to favour their friends or relatives. In these cases, the people in power cross a line and overlook other people’s merits when hiring. Corruption has common characteristics inboth the domestic and international level. First, the act is calculated. The implication is that people who engage in corrupt activities are organized and tend to fulfill their individual needs. This is a common issue where a person taps resources meant for the public purpose and direct them to serve their vested interests (Ndjio, 2014, 89). The drive of a corrupt person is an opportunist which causes the underprivileged to lack the right to necessities.  The greed for money drives people to engage in illegal activities for illegitimate private gain.  Further, corruption can be political. In this case, the political elites misuse their power and status to engage in fraudulent activities. The bureaucratic processes are also a breeding ground for those in administrative positions.  Most African leaders are autocratic, and the structures of democracy are only decorative (Coolidge& Rose-Ackerman, 1999). Countries such as Uganda, are still enduring the damages done by Idi Amin who endorsed single party politics which derailed the country development. Party based corruption has facilitated political monopolization thus subverting the legal and economic systems. President Museveni of Uganda is trying to repair the years of corrupt practices in the country.

Further, corruption can be conducted in a large or small scale. Often, people can scheme to swindle a little or a large amount of money. Corruption can also be administrative which means that it affects the implementation of regulations.Sandbrook denotes that patrimonialism is one of the causes of crime (2012). This is usually an arrangement set by rulers in their acts of administration. When a ruler competes for a particular office and wins, he/she tends to reward the supporters who stood by him or her during the process. What follows is that the loyal supporters obtain a seat at the high table while others are given promotions out of the blues without considering their qualifications. The supporters then continue protecting the ruler who holds the top position. In most African countries, patrimonialism and neo-patrimonial forms of governance promote corruption and derail the development of nations. Where neo-patrimonial governance exists, the structures of the government exists, but only for a show. In this form of governance, legal systems, constitutions, and even offices for the president and other ministers exist (Kaufmann & Vicente, 2011). However, the practices that subsist are a provision for allotting funds to friends and families.

Further, due to institutionalized arrangements, the bureaucratic systems thrive, and the people holding offices fail to account for the public resources which pinpoint to corruption. Even in the international community,corrupt practices such as money laundering are widespread (Rontos&Vavouras, 2015). There is less transparency when it comes to accounting for money, and the political leaders have developed a strategic mechanism of hiding funds in offshore accounts especially when it is from corrupt and other illegal dealings. Internal and external management systems are corrupted. Officials who are supposed to oversee the management of finances are motivated by greed and engage in fraudulent activities. There is a flow of illegal funds from one country to another.

Case Study

Corruption and corporate illegality destroy our moral fabric as a society. International organizations are not precluded from engaging in corporate illegality. Aid organizations in different countries have been reported to participate in activities such as gender discrimination, abuse, among others. There are cases that have been reported of sexual exploitation byaid workers. This is an indication that women rights are continually trampled down.  In countries such as Sierra Leone and Liberia, peacekeeping personnel are perpetrators and have gone to an extreme of blackmailing the refugees so that they do not report such cases. The refugees, on the other hand, fear reporting the cases because they may be denied the necessities that they very much need(Parliament, n.d.). In the first place, the refugees are in this vulnerable position due to the collapsed economies which are brought about by their political leaders. Further, poverty and unjust systems orchestrated by the corrupt political leaders have affected the refugees causing them to leave their homes and become in dire need of aid. Deplorable acts of extortion where local aid workers who are in authority extort sexual favors from young women, girls, and boys in exchange for aid materials leave much to be desired of the humanitarian efforts.  Further, instead of distributing foods and other services to the victims, the humanitarian workers may accumulate these goods for their gains.Other humanitarian response workers use their power and misappropriate the donor funds or swindle the resources to fulfill their vested interests.  Additionally, the NGO offices misuse their official capacities and exploit their clientele in the course of performing their duties.

The issue of sexual exploitation and abuse by charitable agencies came into limelight in the year 2000(House of Commons International Development Committee, 2018). The staff members of thehumanitarian response were alleged to sexually exploit children refugees in West Africa. These findings pushed the humanitarian organizations to develop an inter-agency taskforce meant to deal with these issues and prevent any future incidences.  The inter-agency task force was founded on a set of guiding principles intended to offer greater safety to women and children refugees. Additionally, other measures such as the prescribed code of conduct were implemented.  Further, it was made a requirement for aid workers to be registered and for a complete background screening to be done. However, the sexual exploitation by NGO staff has not ended. The case of Oxfam in Haiti points to the fact that there is much to be done for these heinous acts to diminish. Sexual exploitation of women is an injustice and the refugee women ought to be educated on how to speak out (Sandler et al., 2012, 19). Further, there should be programs that promote therapy sessions for the victims who have gone through these horrendous experiences. Women need to be empowered, and the institutionalized arrangements that have perpetuated gender inequality need to be eliminated (Molyneux&Razavi, 2002).

In the fight against corruption, international organizations have been a part of theproblem and solution at the same time. Issues such as transnational bribery have only been criminalized recently. However, the international measures that have been enforced are such as the creation of the Organization for Economic Cooperative and Development which was established to put an end to foreign bribery of officials(The World Bank Group, n.d.). This practice ensures that intercontinental business transactions are legit.  Further, the European Union developed a rule against corruption, and the officials of the member countries are charged with the responsibility of implementing the necessary reforms in their countries to end the act. There is also a financial task force that was established to clear out money laundering activities(The World Bank Group, 2016). However, the measures can only be effective if the domestic countries play their role in controlling this act. Non- governmental organizations also operate anti-corruption programs that are aimed at eradicating corruption and ensuring integrity is maintained.

Conclusion

The acts of corruption start from the low levels to the political rulers. However, the greatest perpetrators of crime in the developing world are autocratic leaders who undermine their responsibilities and use their authority to coordinate fraudulent activities. Most forms of corruption are political, and the company leaders are mostly loyal supporters who use their position of leadership to swindle money and bribe officials while engaging in other criminal activities. Further, the institutional arrangements that have perpetuated under the patrimonialism and the neo-patrimonialism system of administration have caused power and resources to rest in the hands of the political elites. Due to the mentioned reasons, the international organization’s solutions to eradicating corruption is usually reforms within the government. Not unless stringent laws, policies, and programs are implemented and the government takes a zero-tolerance policy against fraud and corporate illegality, then the international rules are dysfunctional in eradicating corruption. The national government needs to coordinate efforts with the international bodies for the necessary precautions to take effect.Further, the NGOs need to seek information from the business community to identify how corruption has progressed and the opinions they have on how to eliminate the act at this level. Close oversight is necessary, and both the international and national bodies need to identify that they can only act jointly not separately.

Bibliography

Coolidge, J. and Rose-Ackerman, S., 1999. High-level rent-seeking and corruption in African regimes: Theory and cases. The World Bank.

House of Commons International Development Committee, 2018. Sexual exploitation and abuse in the aud sector, s.l.: s.n.

Kaufmann, D. and Vicente, P.C., 2011. Legal corruption. Economics & Politics, 23(2), pp.195-219.

Klein Haarhuis, C.M., and Leeuw, F.L., 2004. Fighting governmental corruption: the new World Bank programme evaluated. Journal of international development, 16(4), pp.547-561.

Molyneux, M. and Razavi, S. eds., 2002. Gender justice, development, and rights. Oxford University Press.

Ndjio, B., 2014. Overcoming socio-economic marginalisation: Young West African hustlers and the reinvention of global capitalism. Civic Agency in Africa: Arts of Resistance in the 21st Century, pp.85-103.

Parliament, n.d. Sexual exploitation and abuse in the aid sector. [Online]
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Rontos, K. and Vavouras, I., 2015. The pillars of corruption control worldwide: differences between rich and poor Countries. Journal of Economics and Business, 18(2), pp.105-126.

Sandler, J., Rao, A., and Eyben, R., 2012. Strategies of feminist bureaucrats: United Nations experiences. IDS Working Papers, 2012(397), pp.1-35.

Sandbrook, J.B., 2012. The corruption chameleon: a case study of corruption within a Malawian NGO: a thesis presented in partial fulfilment of the requirements for the degree of Master of Philosophy in Development Studies at Massey University, Palmerston North, New Zealand (Doctoral dissertation, Massey University).

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