Corruption is essentially the use of public power for private gain. The first obvious site for such corruption is the public sector. The state's monopoly on control of public resources and its preferential access to certain sources of information require strict rules and procedures to ensure fair practice. In the absence of such rules, and even at times when these do exist, the government is open to a number of types of corruption.

1 Forms of corruption

1.1 Bribery
Bribery is arguably the most common form of corruption. It entails beneficiaries using extralegal means of payment to acquire government favours and resource allocations.

This can involve contracts, tax exemptions, timeframes and technical standards for complying with procurement rules and licences, public information being monopolised, or getting the government to turn a blind eye to illegal activities.

1.2 Theft and fraud
Some officials steal state assets under their jurisdiction or made accessible to them as a function of their positions in government. Acquiring publicly owned assets through illegal transactions and fraud constitutes the most extensive form of such corruption.

1.3 Institutional corruption
Both the political and bureaucratic components of government could become sources and targets of corruption. A common occurrence of such political and bureaucratic corruption is where conflicts of interest are not managed, so that potential beneficiaries of projects or resource allocations are directly able to control or influence decisions about those projects or allocations. Institutional corruption is often - perhaps most commonly - associated with cases where processes of decision-making are misused by those who have the power to waive rules.

2.1 Grand corruption
This type of corruption is defined as corruption that involves heads of state, ministers, or other senior government officials and serves the interests of a narrow group of business people and politicians as criminal elements.

2.2 Political corruption
Political corruption involves lawmakers, such as monarchs, dictators, and legislators. Such officials engage in corruption when they seek bribes or other rewards for their own political or personal benefit in return for political favours to their supporters at the expense of the public interest.

2.3 Corporate corruption
This occurs in relationships between private business corporations and the suppliers or clients. It also occurs within corporations, when corporate officials use the corporation resources for private gain, at the expense of the shareholders.

2.4 Administrative corruption
Administrative corruption includes the use of bribery and favouritism to allow certain individual businesses to lower their taxes, escape regulations, or win low-level procurement contracts.

2.5 Petty corruption
This type of corruption involves the payment of comparatively small amounts of money to facilitate official transactions, such as customs clearance or the issuing of building permits.

2.6 Systemic corruption
This type of corruption is that type of corruption that is prevalent throughout all levels of society.

3 Causes of corruption

The causes of corruption are varied and would have to be understood in specific contexts. Corruption is closely, but not solely linked to officials' discretion over rents and the degree of accountability in executing such discretion.

3.1 Ambiguous laws and regulations
A lack of clear rules governing the public sector and its procedures creates loopholes for persons or firms to receive a government benefit to which they might not be entitled. In South Africa the Corruption Act 140 of 1992 and the Prevention of corruption and Related Practices Act 12 of 2004 are vaguely formulated and this give people the leeway to avoid prosecution.

3.2 Poor enforcement of property rights and the rule of law
Weak enforcement of law and order in relation to property businesses encourage corruption. Corruption is also more likely to take place when bureaucratic red tape is excessive.

3.3 The overall culture of governance also plays an important role in corruption
If political leaders and top bureaucrats set an example of self-enrichment or ambiguity over public ethics, lower level officials and members of the public might follow suit. Hence, bribery and corruption may become the norm, even in the face of formal rules intended to support clean governance. Because of government's major role in most developing economies, opportunities for corruption are often more numerous.

4 Consequences of corruption

• Corruption undermines economic development
• Corruption undermines political stability and government legitimacy
• Corruption undermines the fabric itself
• Corruption jeopardizes the allocation of resources to sectors crucial for development
• Corruption encourages and perpetuates other illegal opportunities