Effect of Corruption in Asian Business

In: Business and Management

Submitted By scottthornton
Words 1676
Pages 7
Business practices in Asia
Essay
Essay topic –

What is corruption and how does corruption affect business in Asian contexts? Choosing two Asian countries examine and compare their anti corruption strategies.

Corruption, a problematic issue within business practice throughout modern Asia. Two of Asia’s biggest players, India and China, both are nations of great contrast, a definite distinction between the wealthy upper class and poverty stricken lower class, with an arguably absent middle class. Both nations are rich in tradition and culture, another similarity; an underlying rift of corruption and bureaucracy which plagues the nations. The extent of corruption in India and china, both past and present, will be examined in the essay as to how it affects business within the countries and on a more global level, how this corruption affects its standing with foreign investors. As a result of this widespread corruption, there has been a heavy focus on anti corruption strategies in the areas over the past few decades.

Corruption, on its most basic level, is described as “an act done with intent to give advantage inconsistent with official duty and the right of others” (CPIB: What is Corruption. 2012). In economic terms, corruption generally refers to the payment for goods or services, which is not due to the beneficiary. From a historical standpoint, India has an extensive past of corruption, but I will focus on the more recent history of corruption in India, in the period 1950-1980, the Indian economy was subjected to a great degree of “regulation, protectionism and public ownership, leading to pervasive corruption and slow growth” (The companion. 2012). This was also a period of great infrastructure growth in India, with massive transportation constructions such as highways, the high levels of infrastructure growth by the public sector left corruption…...

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