In the modern world corruption (from lat. corrumpere-to spoil) - one of the main threats to the national security of any country. It threatens the rule of law and human rights, undermines the moral foundations of society, trust in government, and hampers economic and social transformation.
The main negative economic and social consequences of corruption are as follows:
- the shadow economy is growing, which leads to a decrease in tax revenues and a weakening of the budget;
- inefficient use of budget funds in the distribution of government orders and loans;
- the competitive regulation of the market is violated, as individual market participants receive illegal advantages;
- increase the cost of production of products and goods, selling (retail) prices due to the corruption component of the costs of business entities, inflation is rising;
- the investment climate is deteriorating, as investors become convinced of the inability of the authorities to establish, control and comply with transparent rules of market relations;