Corruption and its Impact on the Kosovo economy

• Author: Hamdi Hoti
• Position: University of Prizren, Kosovo
• Pages: 188-194

Vol. 3 No. 2

July 2017

Academic Journal of Business, Administration, Law and Social Sciences

IIPCCL Publishing, Graz-Austria

ISSN 2410-3918

Acces online at www.iipccl.org

188

Corruption and its Impact on the Kosovo economy

Assoc. Prof. Dr. Hamdi Hoti

University of Prizren, Kosovo

Abstract

Corruption today is quite a complex phenomenon in Kosovo, which is a serious obstacle for an

e cient state. Today experience shows that corruption is bad and a ects economic development.

Corruption leads governments to intervene where they do not need, and this impairs their

ability to formulate and implement policies in the areas in which government intervention is

needed, such as: health, environment, welfare people and economic development in general.

This paper will address the nature of corruption, its causes and its e ects on the country's

economic and social development.

Keywords: corruption, development, economics, policy, process.

Introduction

Corruption is a major problem for all countries of the world, especially in transition

countries and Republic of Kosovo, and it is now doing well as a global disease.

Corruption is one of the main problems faced by many countries,1 particularly

developing countries and less developed ones as is the case of Republic of Kosovo,

which is still in transition. According to the World Organization of the United

Nations, corruption undermines democratic institutions, slows economic growth

and governments become less stable, while the World Bank describes corruption as

the main obstacle to economic development. Corruption is a major problem for the

violation of human rights in the world, including Kosovo.

Scholars have made a empts to theoretically establish a link among corruption,

political instability, and economic development. In explaining the connection between

corruption, political instability and economic growth, for instance, Mauro (2000)

described a scenario in which an individual politician sets a high bribe rate (Abu,

Zaini, Abd and Aziz, 2015). Corruption causes the following crises: social, political,

economic, etc. It undermines the state budget, hindering capital investment and

other types, such as health facilities, education etc. Also, corruption is linked with the

economy tenders in various capacities and political life in general which also a ect

social life by creating a government crisis. Corruption is even worse, especially when

dealing with persons exercising public functions, and causes loss of hope citizens

about their prospects and the country in general.

The a endant widespread corruption will have adverse e ects on economic

performance (that is, sluggish economic growth), leading to the collapse of the

government. For example, corruption among government o cials or bureaucrats

1 Education against corruption, Manual for teachers, Project against corruption in albania (PACA),

Tirana, September 2012.