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Theoretical and Applied Economics
No. 1 / 2017 (610), Spring

The evolution of corruption and its current state – A case study on Romania

Ciprian ROTARU
The Bucharest University of Economic Studies, Romania
Raluca GEORGESCU
The Bucharest University of Economic Studies, Romania
Dumitru-Alexandru BODISLAV
The Bucharest University of Economic Studies, Romania

Abstract. This paper represents an overview of the corruption phenomenon that can take different forms depending on the actors involved: favouritism, fraud, nepotism, protection tax, embezzlement, influence peddling, bribery and extortion. No corruption would occur without the participation of companies, banks and governments which feeds and facilitate corruption through their actions. Companies pay bribes, neglect or refuses to disclose payments creating an environment conducive to misappropriation. Companies also exploit the gaps in laws for the poor but resource-rich countries to avoid taxes and depriving them of much needed income. Banks feed corruption by offering loans secured by properties with low transparency, thereby enabling money estrangement without citizens knowing this. More than that, banks have shown over time that they are willing to accept huge volumes of money from corrupt governments, officials or businessmen looking to draw income from the legitimate economy of the country without paying taxes. The model developed in this research paper represents a study created for the perception of the Romanian population regarding its awareness on corruption and national core values.

Keywords: corruption, national values, governance, public institutions.

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