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Topic : Way of Life
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Created by : akshaya bhatia, Experienced IT plus Management Professional  | 11 16 2011 11:15:25 +0000
Industry : Management & Strategy ConsultingFunctional Area : Valuation(Corporate Finance)
Activity:  724 views;  last activity : 12 24 2011 09:00:53 +0000
 
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Yes, there is a direct correlation, as normally observed... Vs No, both are mutually exclusive malaise...not related
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Normally, this is often observed global trend, whenever there is inflation in a region, the instances of corruption are also rampant there and also vice a versa..if there this correlation is valid, what could be the reasons?? If this is just an oversight or aberration, please justify...>>>>...

 


By akshaya bhatia, Experienced IT plus Management Professional  11 16 2011 11:15:25 +0000
 
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when there is deffernec in demand and supply, naturally the prize with increase. and that situation every human is willing to get the necesisty things at any cost, the corruption started from there only.
By RAVI PRATAP SINGH, B.E.(Honos.), Mechanical Engineering  | 12 24 2011 09:00:52 +0000
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Though different things contribute to corruption and inflation, I also agree they may be related. Rampant corruption results in huge unaccounted money with the corruptors, which can push the price levels higher.
By Padmanabhan R, Articled / Audit assistant, Finance student  | 12 03 2011 07:07:26 +0000
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Mathews, Thanks for the link, the correct link is:-

http://plato.stanford.edu/entries/corruption/

This is primarily a philosophical discussion not based on any concrete quantitative study, though i duly agree with the most of the generic hypothetical inferences, viewpoints and views, a well.  This is like  a moral story or saying like "Pride hath a fall", most will agree.

The discussion no where touches what factors cause "increase in level of corruption"...which is the moot point of debate here...respecting and accepting your view on existence as well as cause of corruption, i wish you to analytically draw your inferences based on the data analysis of the reports that i have presented through number of links...

So many data analytical reports done by reputed (recognized) market research institutions independently can not go wrong.!!!..

 

 

 


By akshaya bhatia, Experienced IT plus Management Professional  | 11 28 2011 16:30:35 +0000
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Mathew, agreed to your perception, that reasons for augmenting corruption and inflation could be same, ie. lack of (quality of) economic planning. The query of debate is different from your viewpoint.

Either your views should be based on researched data or you must justify emotions or your perception with logic. Though perceptible, it is not a rule that developed countries are less prone to corruption, please refer to some other studies:-

http://www.forbes.com/2007/04/03/corruption-countries-nations-biz-07caphosp-cx_da_0403corrupt.html

http://www.forbes.com/2007/04/03/corruption-countries-nations-biz-07caphosp-cx_da_0403corrupt_slide_2.html

http://www.globalissues.org/article/590/corruption

 


By akshaya bhatia, Experienced IT plus Management Professional  | 11 28 2011 03:10:15 +0000
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WHEN A COUNTRY FACES AN INFLATIONARY LIKE SITUATION OWING TO HUGE INVESTMENTS FOR ECONOMIC ACTIVITIES IT IS RESULTED IN EMPLOYMENT FOLLOWED BY INCOME AND IMPROVEMENT IN PRODUCTION AND FINALLY A RISE IN THE GENERAL PRICE LEVEL. BUT IN UNDERDEVELOPED OR DEVELOPING COUNTRIES THE DEGREE OF CORRUPTION IS PLAYING THE SPOILSPORT
By sudhakar , BUSINESS CONSULTANT  | 11 27 2011 16:42:59 +0000
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Thanks Mathew, for highlighting my point of View with the example of US, Inflation in USA has never been as high (in comparison to) as other parts of the world, therefore comparatively less instances of relative increase in corruption,  please check the data:-

http://www.indexmundi.com/g/r.aspx?t=100&v=71

Also, check time to time, within any region (or compare it between regions), you would surely find a direct correlation with this, whenever there is increase in prices people are more inclined to corrupt practices, also conversely, when you find lot of instances of corruption in society, you can see inflation mounting at brisk rate. Why, so??

Irrational individual choice that you mention, i agree, however, query is different.

 

 

 


By akshaya bhatia, Experienced IT plus Management Professional  | 11 27 2011 04:31:41 +0000
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Akshaya I ditto your views on the subject.


By Rathin Deb, Advisor and retail consultant, currently as Branch Manager, Tower Infotech Ltd  | 11 25 2011 14:32:18 +0000
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Perhaps, the query and data analysis reports are not being properly understood.. All inferences 1 to 4 indicated direct correlation between the two..What precedes which, was not the query, so irrelevant... It is observed globally when the price are rising so are the incidences of corruptions, and also the vice a versa...(based on numerous studies based and statistical data analysis and comparison regional basis, as performed by globally recognized data research centers...)...

 


By akshaya bhatia, Experienced IT plus Management Professional  | 11 25 2011 12:46:13 +0000
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Perhaps, the query and data analysis reports are not being properly understood.. All inferences 1 to 4 indicated direct correlation between the two..What precedes which, was not the query, so irrelevant... It is observed globally when the price are rising so are the incidences of corruptions, and also the vice a versa...(based on numerous studies based and statistical data analysis and comparison regional basis, as performed by globally recognized data research centers...)...

 


By akshaya bhatia, Experienced IT plus Management Professional  | 11 25 2011 08:28:32 +0000
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Direct correlation between the two has been established based on inferences drawn from detailed data analysis and the actual scenario globally:-

Please refer:-

http://www.bdinn.com/articles/corruption-and-inflation-what%E2%80%99s-the-nexus/

Key inferences scientifically it draws out provide the rationality as follows:-

This piece examines the linkages between corruption and inflation and accordingly posits the following hypothesis:-

1. Higher level of corruption may lead to higher inflation;

2. Decrease in the level of corruption may lead to a decrease in inflation;

3. Higher Inflation may lead to higher level of corruption;

4. Decrease in inflation may not necessarily bring down corruption.

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Also refer:-http://www.newzimbabwe.com/pages/inflation181.17413.html

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http://news-business.vlex.co.uk/vid/correlation-and-comparison-of-pakistan-india-261959154

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http://www.sciencedirect.com/science/article/pii/S016517659900230X

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http://econpapers.repec.org/article/blaecopol/v_3a16_3ay_3a2004_3ai_3a1_3ap_3a77-100.htm

and many more such statistical and scientific reports, empirical results and observations....

 


By akshaya bhatia, Experienced IT plus Management Professional  | 11 20 2011 18:58:44 +0000
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Mr. Akshay, thanks for reading the plato paper. An experienced person like you should have noticed that data gathered from isolated geographical locations can be considered scientific. A scientific study starts from a philosophy which are subjugated to our existence. It can also take into purvey history, in this case some of the historical facts are embedded in the writings of John McKay, 'extreme dellusions and madness of the crowd'. The other one is about Hugenots leadership eradicating corruption in US which is similar to what is going here by Mr.Anna Hazare. The earlier one points out to nations where the private and the public interests are not balanced doing so takes real work which cannot be explained in few sentences. It criscrosses around lots of functional areas in Economics. Even containing inflation is a herculean task in budding economy like India whose only 15% of the market is formed. Thanks.
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 11 29 2011 14:53:41 +0000
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Mr. Akshay, initial 2 of your web reference don't work. The other one is just glib without any evidence not of any scientific philosophy, just emotive per se. To execute something one wish is done through horobs either as a chain following from the achievements from one generation to the other scaled on our conscious development. Feelings and suspicion based regulations don't get executed. Science is the too for execution and not feelings and supicions one more time. For this there are a few things a country should do which if one is not interested then corruption will follow as an externality. I will refer you to journal on Stanford Plato. Please type www.stanford.plato.edu and search for corruption. There are some philosophical deliberations on this subject which could be a good starting point. Thanks.
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 11 28 2011 15:55:28 +0000
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No I don`t think so. Inflation may be the cause of protests and unrest but as per my view our moral is responsible for corruption. The history of corruption is as old as the civilization itself. The moral decay of officials and bribing tendency of public has increased the corruption many-folds. Rich people bribe officials and poor have to suffer.
By Saquib Alam, B.A (sociology), BRA Bihar university  | 11 28 2011 08:12:47 +0000
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The reason why there is no inflation is the same reason why there is no corruption and what could be that reason. It is that the economy is designed and planned that way considering both of the same type destroying welfare of the citizen. The same quality of precautions are taken to avoid not only both these two but many other like them which improves the quality of life of citizen and reduce lopsided effects originating from misconceived ideas. Corruption in large extent is only a developing nation phenomenon and not something one sees manifested in developed nations. Nations get developed for this fact that citizen chooses so by pledging their efforts to do so motivated by incentives and give ways which leads to the phenomenon I discussed earlier. Thanks.
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 11 27 2011 16:12:33 +0000
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Man is a product of his 'circumstances' and a slave to 'conditioning'. If one has only 'irrational choices' to live with in his circumstances then one gets conditioned to be corrupt and vice versa.
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 11 26 2011 18:07:25 +0000
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Then why is there no corruption in US or developed world when inflation goes high there. Mr. Bhattia, correlation is only a tool. causalities has time lags, one happens earlier the cause and the results happen later. What you try to establish is inductive where as the other is deductive, the latter has more priority being more real. Thanks.
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 11 26 2011 18:04:13 +0000
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I read the paper you quoted. The first of four hypothesis itself shows corruption 'precedes' inflation. This shows clearly officials are stretched lot forcing them to live by making 'irrational choices' to sustain.
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 11 21 2011 05:02:24 +0000
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It is totally exclusive of each other and in indian society it does exist from time immemorial. It did exist in good bountiful times too as we indians always love the short cut and not wait for the fruits of the labour.
By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 11 20 2011 18:17:59 +0000
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i think is inflation not catalyst to rise in corruption , corruption is different part like more needs
By Rahul Mishra, Markting Excuitive, k sera sera intertement  | 11 18 2011 12:59:35 +0000
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Corruption is an 'irrational choice' one makes in life for meeting personal needs. Only way it can be avoided is by building 'rational choices' for citizen.
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 11 17 2011 14:15:52 +0000
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