
The economic effects of corruption can be categorized as minor and
major. However, both in one way or the other have serious impact on the
individual community and country. First and foremost, corruption leads
to the depletion of national wealth. It is often responsible for
increased costs of goods and services, the funneling of scarce public
resources to uneconomic high profile projects at the expense of the much
needed projects such as schools, hospitals and roads, or the supply of
potable water, diversion and misallocation of resources, conversion of
public wealth to private and personal property, inflation, imbalanced
economic development, weakling work ethics and professionalism,
hindrance of the development of fair in market structures and unhealthy
competition there by deterring competition. Large scale corruption hurts
the economy and impoverishes entire population.