Fighting Corruption and Embezzlement in Third World Countries
| Author | Dawit Kiros Fantaye |
| Published date | 01 March 2004 |
| DOI | 10.1350/jcla.68.2.170.29126 |
| Date | 01 March 2004 |
| Subject Matter | Article |
Fighting Corruption and
Embezzlement in Third World
Countries
Dawit Kiros Fantaye*
Abstract
Economic crime is one of the most serious crimes endangering
the national security and public safety of any country. It is directly
associated with legal, political, social, human rights and development
issues. In particular, economic crime harms Third World countries such as
Ethiopia where poverty is prevalent and the economy is poor and sup-
ported by foreign aid and loans. White-collar employees like higher
government officials and businessmen play a key role in creating and
increasing economic crimes, namely corruption, embezzlement and fraud,
all over the world. It is therefore important that any form of economic
crime is identified and punished severely, by appropriate prison terms
according to the seriousness of the offence. By applying these kinds of
penalties to economic criminals, the rate and frequency of economic crime
can be minimised and, simultaneously, pave a way to the fundamental
practices of democracy, government transparency and the dominance of
the rule of law in the country. The main purpose of this article is to explain
the effect of corruption in Third World countries and ways in which it can
be combated, in particular by the imposition of heavy penalties on those
who choose to commit economic crimes in Third World countries. It is
argued that this must be done to protect human rights, to bring about
political and social stabilisation, to ensure effective and even distribution
of national wealth and, eventually, to secure democracy and sustainable
development in the Third World countries.
Economic crimes such as corruption, fraud and embezzlement are set-
backs to most developing and developed countries. Combating corrup-
tion is now one of the highest priorities on the agendas of government,
international development agencies and leading organisations.1 Eco-
nomic crime is one of the most dangerous crimes; it facilitates poverty,
increases rule by force, violates human rights and reduces government
transparency. A concomitant of endemic corruption is that many people
in Third World countries have limited access to basic necessities. The
impact of corruption can be assessed by looking at the experience of
particular Third World countries. For example, in Uganda:
The diversion of public resources, services and assets to private use gen-
erally results in deteriorating roads, poor medical facilities, dilapidated and
ill-equipped schools and falling educational standards. Furthermore, it can
be argued that the direct economic costs of corruption are diverted by the
indirect costs. Widespread, systematic corruption can undermine the legiti-
macy of the public section and foment political instability. As corruption
erodes confidence in political leaders and institutions, the government
becomes less able to rely on the cooperation and support of the public, and
* LLM Student of Zhejiang University, Hangzhou, China. The author would like to
express his thanks to Professor Song Yonxin for supervision in preparing this article.
1 W. Heath, ‘SA Can Set Anti-corruption Example’, Business Day, 26 August 1999.
170
Fighting Corruption in Third World Countries
it increasingly resorts to force and coercion. The resulting social unrest
often leads to civil strife and violent change of government that can
subvert, or even reverse, decades of hard-won development progress.2
In Tanzania:
Corruption has contributed to economic stagnation and helped to concen-
trate power and wealth in the hands of a few. Huge amounts of tax revenue
have gone uncontrolled because of widespread tax evasion and irregu-
...
To continue reading
Request your trial