Q. Consider the following statements:
1.Corruption is the abuse of entrusted power for private gain which can occur in both the public and private sectors.
2.Corruption has decreased with globalization.
3.High levels of corruption between government and businesses leads to significant rent-seeking activities.
Which of the statement(s) given above is/are correct?
Explanation –
Statements 1 and 3 are correct. Corruption involves the misuse of power for personal benefit, and it is not limited to the public sector. It can manifest in various forms across both public and private sectors, such as bribery, embezzlement, and other unethical practices. When there is significant corruption in the relationship between governments and businesses, it often leads to rent-seeking activities. Rent-seeking involves efforts to gain economic benefits through manipulation or exploitation of the political environment, rather than through productive economic activity, which can distort markets and hinder economic development.
Statement 2 is incorrect. Globalization has in some cases exacerbated corruption by increasing opportunities for cross-border bribery, money laundering, and other corrupt practices. The increased interconnectedness of global markets can sometimes create environments where corruption is more challenging to control.
Source: The Hindu
