CHAPTER I
INTRODUCTION
INTRODUCTION
A. Background
Corruption is a cultural relic of the past. It is a culture that is difficult to change because it is inherent in human beings themselves which is morality or morals. Lately the problem of corruption raged discussed, especially in the mass media both locally and nationally. Many of opinion arising from the corruption that opinion either pro and con. However, corruption cost the country and can damage joints cohesion of the nation.
Corruption, could theoretically come up with a variety of forms. In the case of Indonesia, corruption becamefamiliar terminology in conjunction with the collusion and nepotism. The last two words are consideredvery closely with the corruption that was later declared as a destroyer of the nation's economy. Even to feel the need to issue a decree Assembly(MPR) and specificallyto ensure the completion of the last formedthe Corruption Eradication Commission (KPK).
Money politics and bribery is a form of unlawful transactions are very familiar with the economic and political elite since the days of our old order until the reform era. Terminology mentioned as transaction cost economics, sociology while the language is called corruption.
Legal loopholes always been a powerful weapon the perpetrators of corruption to avoid lawsuits. Corruption case of former President Suharto, the new case examples that did not earn the point of completion. Though Completion big corruption cases as cases of corruption by Suharto and his cronies, BLBI funds, Cases Susno, and Gayus will be able to stimulate economic development program in Indonesia. In order to achieve national development goals, then inevitably corruption should be eradicated.
Legal loopholes always been a powerful weapon the perpetrators of corruption to avoid lawsuits. Corruption case of former President Suharto, the new case examples that did not earn the point of completion. Though Completion big corruption cases as cases of corruption by Suharto and his cronies, BLBI funds, Cases Susno, and Gayus will be able to stimulate economic development program in Indonesia. In order to achieve national development goals, then inevitably corruption should be eradicated.
B. Problem
1.Faktor-factors that encourage a person engaged in corruption?
2.Bagaimana measure the level of corruption?
3.How corruption impacts on the economy?
1.Faktor-factors that encourage a person engaged in corruption?
2.Bagaimana measure the level of corruption?
3.How corruption impacts on the economy?
C. destination
This research aims to assess the effect of corruption on the economy.
This research aims to assess the effect of corruption on the economy.
D. benefit
The writing is expected to increase knowledge for writers and readers about corruption and its impact on the economy.
The writing is expected to increase knowledge for writers and readers about corruption and its impact on the economy.
E. approach
Gather information from various sources.
Gather information from various sources.
CHAPTER II
DISCUSSION
DISCUSSION
A.Factors that Encourage Corruption Measures
Corruptionis not a stand-alone. Corruption involves variousthings that are complex. Factors leading cause could be from internal actors of corruption, but it can also come from the neighborhood situation conducivefor a person to engage in corruption. The following are aspects of one's cause of corruption.
A more detailedanalysis of the causes of corruption again expressedby the Finance andDevelopment Supervisory Agency (BPK):
1. Having less ExemplaryLeadership
2. Do not Have the RightOrganizational Culture
3. True Accountability System in GovernmentAgencies Insufficient
4. Weakness Management Control Systems
5. Management tends CoveringCorruption in Organizations
B.The level of corruption in Indonesia
Ofa survey conducted by transparency.org, an independent body of 146 countries, 10 countries recorded data is expressed as a corrupt state.
A list of 10countries in the World Corrupted as follows:
1. Azerbaijan
2. Bangladesh
3. Bolivia
4. cameron
5. Indonesia
6. Iraq
7. Kenya
8. Nigeria
9. Pakistan
10. Russia.
Addendum:from the list above, our country is ranked 5th in the worldcorrupt country, butat the Asia Pacific, we are the most corrupt country.
here are5 of the most corrupt countries in Asia-Pacific:
1. Indonesia
2. Cambodia
3. Vietnam
4. Philippines
5. India
D.Impact of Corruption on the Economy
1. Corruption reducesthe income of the public sector and increasinggovernment spending on the public sector.
2. Corruption reduces the ability of the government to make improvements in the form of regulation and control of market failure (market failure). When the policy was in effect a strong corruptionand the imposition of regulatory policy, for example, in banking, education, food distribution, and so forth, will actually encourage inefficiency.
3. Corruption distorts incentives person, andshould perform productiveactivities into a desire to realize the opportunities for corruptionand ultimately contributenegative value added.
4. Corruption becamepart of the welfarecosts increase the cost of production, and furtherincrease the costs to be paid by the consumerand the community (in the case of taxes), so the overall effect onthe wellbeing of people down.
4. Corruption becamepart of the welfarecosts increase the cost of production, and furtherincrease the costs to be paid by the consumerand the community (in the case of taxes), so the overall effect onthe wellbeing of people down.
5. Pundamental reduces the role of government corruption (eg the application andcontracting, protection, provision of property rightsand so on). In the end it will give a negative impacton economic growth is achieved.
6. Corruption reduces the legitimacy of the role of markets in the economy, and alsothe democratic process. Cases like thisare very visible incountries in transition, both of the type ofa centralized economy to a more open economy or authoritarian to a more democratic government, as happened in the case of Indonesia.
Corruption enlarge poverty. This is very reasonable. In addition due to government programs mentioned above do not reach the target, corruption also reduces the potential revenue that may be received by the poor. According to Tanzi (2002), a small company is the most frequent target of corruption in the form of unofficial charges (extortion). In fact, this unofficial levies could reach nearly twenty percent of the total cost to be incurred by the company is very worrisome, because in developing countries such as Indonesia, small companies (SMEs are the engine of growth since the role of many menycrap labor).
In recent years, much research is done by using a corruption index score to see the results in a variable - the other economic variables. Some results of these studies are
1. Reducing corruption Value Investing
Corruption makes some investors lack confidence to capital in Indonesia and prefer to invest it into the countries that are safer like China and India. As a consequence, reduce the actual achievement of growth of the value of a higher growth potential. The reduced value of the investment is thought to originate from the high costs that should be excluded from. decrease the growth is achieved. The study was based on analysis of the production function where growthadalah function of investment.
2.Corruption Reduce Spending on Education and Health
Government revenue due to corruption will be cut even more than 50%, as an example of alleged corruption cases of President Suharto that never finished the annunciator embezzling state funds approximately 1.7 trillion. In order for the government spending deficit spending then do the reduction in government spending.
3. Corruption reduces expenditures for operation and maintenance costs of infrastructure
Corruption also helps to reduce the budget for the financing of public facilities maintenance.
Corruption also helps to reduce the budget for the financing of public facilities maintenance.
4. Corruption lowers the productivity of public investment and infrastructure of a country
5. Corruption lowers tax revenues
5. Corruption lowers tax revenues
CHAPTER III
CLOSING
CLOSING
Conclusion
Viewed from any angle, corruption did not provide benefits. Good to the economy, and the political democratic system is good. The results showed that countries in transition such as Indonesia, both from the economic system (from a centralized economic system towards a more embracing system of market economy) as well as of the political system and democratic (authoritarian government to a democratic government), has always had the problem of corruption is beyond unusually large. In fact, it's been awakened myth in society that it is almost impossible to eradicate corruption, because it was thought that corruption had menjadii Indonesian culture. However this can not be a justification and apology to continue to be tolerant and permissive to the existence of corruption.
Viewed from any angle, corruption did not provide benefits. Good to the economy, and the political democratic system is good. The results showed that countries in transition such as Indonesia, both from the economic system (from a centralized economic system towards a more embracing system of market economy) as well as of the political system and democratic (authoritarian government to a democratic government), has always had the problem of corruption is beyond unusually large. In fact, it's been awakened myth in society that it is almost impossible to eradicate corruption, because it was thought that corruption had menjadii Indonesian culture. However this can not be a justification and apology to continue to be tolerant and permissive to the existence of corruption.
The results Farah Goddess (UI Graduate Student, 2002) said that if Indonesia could reduce the level of corruption as low as tlngkat corruption in Japan, then the performance of the economy as it is now, Indonesia can achieve a growth rate of 6:37% a year. Furthermore, if Indonesia can reduce the level of corruption to the lowest level of corruption Singapore, then Indonesia will achieve economic growth of 10.68% per year. So absolute is, that the anti-corruption adatah integral part dart Indonesian economic recovery process. Because based on any analysis, corruption may not be tolerated.
It would be very confusing if we have to solve all the cases because so many cases of corruption in the country konupsi. Therefore mapping corruption by giving priority to important. The most important benchmark is how far the corruption related to public interest and harm the country's finances. We can find a general pattern of corruption that occurred in Indonesia, but it is not impossible that every region and every case have adequate own specialty. Some things could be a reason for these differences ttumbuhnya such difference of economic resources (or income), cultural, social condition groups, all of which affect the patterns of corruption and its eradication efforts. That pasli, we must immediately move to complete and make changes.
REFERENCES
Dewi Farah, Siti Nurfitriah. 2000 "Analysis of Corruption on Investment Growth domestil and
FDI": The Post Saijana UI. Depok
http://antikorupsi.org/indo/index2.php?option=com_content&do_pdf=1&id=407
http://id.wikipedia.org/wiki/Korupsi_di_Indonesia
http://www.beritaindonesia.co.id/visi-berita/budaya-korupsi/
http://forum.detik.com
http://bpkp.go.id
http://id.wikipedia.org/wiki/Korupsi_di_Indonesia
http://www.beritaindonesia.co.id/visi-berita/budaya-korupsi/
http://forum.detik.com
http://bpkp.go.id