Comparative Study of the Impact of Corruption on the Human Development Index

The problem of corruption in state bodies remains one of the main ones regarding qualitative economic development. The reason for this is the significant negative impact of this phenomenon on the standard of living of citizens and the efficiency of the functioning of state bodies. However, the strength of such interaction may differ depending on the country and how conscientiously the employees of its state apparatus carry out their work. Thus, it is relevant to analyze the impact of corruption on the standard of living of citizens, which in the framework of this study is defined as an index of human development. Many scientific methods were used during the work: analysis, deduction, and abstraction. As part of the study, the negative impact of corruption on some important social spheres, such as healthcare, education, and others, as well as on the income level of citizens and the development of the shadow economy, was analyzed. The impact of corruption on the indicators of the human development index and its individual components was assessed. Subsequently, it was shown that there is indeed a certain interaction between these variables, which once again speaks of the role of the fight against corruption in the country. Also, having assessed the state of combating the unfair behavior of civil servants in Kazakhstan, recommendations were prepared to counter this phenomenon. This work brings new knowledge in terms of assessing the impact of corruption on the development of the country and its citizens.

1. Akhmetzharov, S., & Orazgaliyev, S. (2021). Labor unions and institutional corruption: The case of Kazakhstan. Journal of Eurasian Studies, 12(2), 133-144. https://doi.org/10.1177/18793665211041198

2. Amini, C., & Douarin, E. (2020). Corruption and Life Satisfaction in Transition: Is Corruption a Social Norm in Eastern Europe? Social Indicators Research, 151, 723–766. https://doi.org/10.1007/s11205-020-02389-6

3. Bahoo, S., Alon, I., & Paltrinieri, A. (2020). Corruption in international business: A review and research agenda. International Business Review, 29 (4), 1-24. https://doi.org/10.1016/j.ibusrev.2019.101660

4. Ceschel, F., Hinna, A., & Homberg, F. (2022). Public Sector Strategies in Curbing Corruption: A Review of the Literature. Public Organization Review, 22, 571–591. https://doi.org/10.1016/j.ibusrev.2019.101660

5. Choi, J.P., & Thum, M. (2005). Corruption and the Shadow Economy. International Economic Review, 46 (3), 817-836.

6. Dreher, A., & Schneider, F. (2010). Corruption and the shadow economy: an empirical analysis. Public Choice, 144, 215–238. https://doi.org/10.1007/s11127-009-9513-0

7. Figus, A., & Shaikin, D. N. (2019). Kazakhstan: Socio-Economic Development, Research and Innovation. Academic Journal of Interdisciplinary Studies, 8(4), 27-39

8. Gupta, S., Davoodi, H., & Alonso-Terme, R. (2001). Does corruption affect income inequality and poverty? Economics of Governance, 3, 25-42

9. Hassan, A. M. (2020). The impact of corruption on the human security of societies in transition (Iraq case study since 2003). https://doi.org/10.1108/REPS-06-2019-0092

10. Human Development Reports. (2023). [cited March 26, 2023]. Available at: https://hdr.undp.org/data-center/human-development-index#/indicies/HDI

11. Kalyuzhnova, Y., & Belitski, M. (2019). The impact of corruption and local content policy in on firm performance: Evidence from Kazakhstan. Resources Policy, 61, 67-76. https://doi.org/10.1016/j.resourpol.2019.01.016

12. Khan, A. R., Abedin, S., Rahman, M. M., & Khan, S. (2022). Effects of corruption and income inequality on the reported number of COVID-19 cases and deaths: Evidence from a time series cross-sectional data analysis. POS Global Public Health, 2(11), e0001157. https://doi.org/10.1371/journal.pgph.0001157

13. Law «On Public Procurement». (2015). [cited March 26, 2023]. Available at: https://adilet.zan.kz/rus/docs/Z1500000434

14. Law «On Combating Corruption». (2015). [cited March 26, 2023]. Available at: https://online.zakon.kz/Document/?doc_id=33478302

15. Ma, J., Guo, B., & Yu, Y. (2022). Perception of Official Corruption, Satisfaction with Government Performance, and Subjective Wellbeing – An Empirical Study from China. Frontier in Psychlogy, 13, 1-9. https://doi.org/10.3389/fpsyg.2022.748704

16. Meier, B. (2004). Corruption in the Education Sector: An Introduction. Bergen: Christian Michelsen Institute.

17. Naher, N., Hoque, R., Hassan, M. S., Balabanova, D., Adams, A. M. & Ahmed, S. M. (2020). The influence of corruption and governance in the delivery of frontline health care services in the public sector: a scoping review of current and future prospects in low and middle-income countries of south and southeast Asia. BMC Public Health, 1, 1-16. https://doi.org/10.1186/s12889-020-08975-0

18. Naz, V. H., Nguyen, M. N., Nguyen, D. A., & Luu, H. N. (2022). The impact of corruption on economic growth in developing countries and a comparative analysis of corruption measurement indicators. Cogent Economics & Finance, 10 (1), 1-30. https://doi.org/10.1080/23322039.2022.2129368

19. Nemec, D., Kotlanova, E., Kotlan, I., & Machova, Z. (2021). Corruption, Taxation and the Impact on the Shadow Economy. Economies, 9(1), 1-16. https://doi.org/10.3390/economies9010018

20. Nguyen, D. B., & Duong, M. T. H. (2021). Shadow Economy, Corruption and Economic Growth: An Analysis of BRICS Countries. The Journal of Asian Finance, Economics and Business, 8(4), 665-672.

21. Ruzanov, R. M., & Zharlygasinov, T. M. (2021). Corruption in healthcare during the Covid-19 pandemic: causes, consequences and countermeasures. Economics: strategy and practice, 16(3), 217-226. https://doi.org/10.51176/1997-9967-2021-3-217-226

22. Sadyrova, M., Yusupov, K., & Imanbekova, B. (2021). Innovation processes in Kazakhstan: development factors. Journal of Innovation and Entrepreneurship, 10, 1-13. https://doi.org/10.1186/s13731-021-00183-3

23. Sabic-El-Rayess, A. & Heyneman, S. P. (2022). Corruption and Education. New York, Columbia University. https://doi.org/10.1093/acrefore/9780190264093.013.1637

24. Strategy «Kazakhstan-2050». (2012). [cited March 26, 2023]. Available at: https://primeminister.kz/assets/media/strategiya-kazakhstan-2050.pdf

25. Transparency International. The global coalition against corruption. (2022). [cited March 26, 2023]. Available at: https://www.transparency.org/en/cpi/2022