Corruption Is An Instrument Of Murder- Mahama
Former President John Dramani Mahama has posited that corruption goes a long way to claim the lives of people and thus defined it as an instrument of murder.
He agrees with the call for concerted efforts globally and nationally in its fight, noting it is a global challenge.
Speaking at a Conference at Ilorin in Kwara State in Nigeria on Thursday, June 22, the former President of
Ghana said the effect can lead to the loss of citizens’ lives due to the deprivation of critical public infrastructure and services.
“Surveyors, Architects, and Engineers who sign off on poorly constructed or shoddy infrastructure projects like roads, bridges, buildings, and railways can lead to loss of lives due to fatal accidents.”
Referencing the World Economic Forum, he said the global cost of corruption is at least US$2.6 trillion- equals 5 per cent of the global gross domestic product (GDP)- while the World Bank reports that businesses and individuals pay more than $1 trillion in bribes yearly.
He said although the approaches and initiatives adopted by the international community against corruption have had a variable impact on stopping illicit financial flows, more have to be done.
Effect
He observes corruption hinders economic development, diverts investments from infrastructure, institutions, and social services, and undermines efforts to achieve other country-specific development goals and targets.
“Corruption also retards growth because bribes paid by investors to secure investment licenses, including building permits, increase the cost of doing business and, consequently, reduces the incentive to invest in a country.”
“Specifically, the impact of corruption in our nation states shows that high corruption rates contribute to high inflation rates. Corruption-induced inflation contributes to high cash and unproductive capital inflows into an economy and leads to macroeconomic instability. These eventually impact microeconomic activities as prices of goods and services and the cost of living in general increase, culminating in labour agitation for commensurate increases in wages and salaries.
“The Central Bank is then compelled to respond with policies to help reduce inflation and achieve price stability. Some of these policies include monetary measures that increase the primary lending rates of banks through the base rates to induce low lending till the excess cash is mopped up from the system. This is certainly inimical to the growth of businesses that rely on credit to survive. This relates to SMEs in particular.”
According to him, corruption has the negative effect of robbing a country of productive capital gained from graft because the proceeds may be transferred to foreign bank accounts.
