Based on this map, we see the regions with developed economies—North America, Western Europe, and Australia—have low levels of corruption.
In contrast, a high perception of corruption is reported in almost all countries with emerging economies.
As a result, the income generated by many businesses exists outside the official economy, and thus are not subject to state taxation or included in the calculation of the country's GDP.
Another negative of shadow businesses is they usually pay their employees decreased wages, lower than the minimum amount designated by the government.
A working paper of the International Monetary Fund (IMF) shows corruption has an adverse impact on the quality of education and healthcare provided in countries with emerging economies.
Corruption increases the cost of education in countries where bribery and connections play an important role in the recruitment and promotion of teachers. Also, corruption in the designation of healthcare providers and recruitment of personnel, as well as the procurement of medical supplies and equipment, in emerging economies results in inadequate healthcare treatment and a substandard or restricted, medical supply, lowering the overall quality of healthcare.
When you go to a theatre to watch a movie, and find that there are no tickets left, what do you do?
Do you say," It's OK, we can come another time." Or do you buy a ticket in black, paying Rs.80 for a ticket when it actually costs Rs.60? This topic is aptly timed; since this week is being celebrated as Vigilance Week by all Public Sector organizations in our country. It is an unethical method used by a person to gain advantage over others.
If, for example, a home construction company had to pay bribes to officials to be granted licenses for operations, these costs incurred will, of course, be reflected in artificially high housing prices.
(See: In best practice, companies choose their suppliers via tender processes (requests for tender or requests for proposal), which serve as mechanisms to enable the selection of suppliers offering the best combination of price and quality.