The Impact of Corruption on Economic Development and Community Welfare from Local And National Perspectives

Muhammad Mas Davit Herman  Rudiyansah; Moch. Gufron Fajar  Rezki

doi:10.70742/arsos.v2i2.349

Authors

Muhammad Mas Davit Herman Rudiyansah Universitas Terbuka Surabaya
Moch. Gufron Fajar Rezki Universitas Maarif Hasyim Latif Sidoarjo

DOI:

https://doi.org/10.70742/arsos.v2i2.349

Keywords:

Corruption, Economic development, Social welfare

Abstract

Corruption is a fundamental problem that hinders development and undermines state legitimacy. In Indonesia, corrupt practices not only result in financial losses to the state but also have systemic effects that undermine governance, hinder economic growth, and exacerbate social inequality. This study aims to analyze in depth how corruption impacts economic development and public welfare, emphasizing its link to public access to basic services such as education, health, and infrastructure. The method used is a qualitative descriptive approach with a literature review approach, examining secondary data from academic journals, anti-corruption agency reports, investigative news, and public policy documents. The study results show that corruption creates market distortions, weakens national competitiveness, and diverts development funds to the interests of political and bureaucratic elites. This condition results in unequal distribution of development between regions, low quality public services, and weakened public participation in the development process. Furthermore, corrupt practices have an impact on declining public trust in state institutions, which in turn has the potential to lead to social instability and a crisis of government legitimacy. This research emphasizes that eradicating corruption requires a multidimensional strategy, ranging from consistent law enforcement and bureaucratic reform to the application of digital technology to increase transparency and accountability. Therefore, the findings of this study are expected to provide conceptual and practical contributions to formulating a more comprehensive, sustainable anti-corruption strategy that adheres to the principles of social justice for the realization of inclusive national development.

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