Corruption is a multifaceted problem that affects nations across the globe by impeding their social and economic development. It is considered a fraudulent act by those in power to obtain illicit benefits or abuse the power for individual gain (Lyra et al., 2022). Diverse acts are classified as corruption, but the common acts include bribery, embezzlement, and procurement corruption. The corruption perception index ranks positions in countries by their perceived level of corruption. Mexico is a Spanish country known for its rich culture, expansive sandy beaches, and incredible cuisine. Poverty and inequality are some of the challenges faced by Mexicans, but corruption remains the major problem that contributes to their deplorable standard of living. The 2022 Corruption Perception Index by Transparency International gave Mexico a score of 31, where 0 represents highly corrupt and 100 is very clean (Mexico et al.). The corruption levels are believed to be higher due to the low crime reporting levels. On the other hand, Denmark is a Scandinavian country that boasts good healthcare and education services to their citizens. It is one of the least corrupt countries in the world. The 2022 Corruption Perception Index by Transparency International gave Denmark a score of 90 where 0 represents highly corrupt and 100 is very clean (Denmark Corruption Index, n.d). The long tradition of transparency and respect for the rule of law has contributed to the constant low levels of corruption. Thus, the study compares the corruption levels of Mexico and Denmark and how corruption impacts on development.
Soliciting or being solicited to give a bribe is a key corruption problem experienced by countries that impede development. Many sectors are affected by the issue of bribery, which increases the cost of accessing public services. According to Inaki 2019, the health sector in Mexico is faced with corruption and mismanagement, leading to overpricing of medical supplies. Mexicans have to pay bribes when purchasing medical services, especially those in need of urgent medical care and those under programmed medication. Also, drug cartels undertake mining activities illegally by bribing officials to permit exportation and using violence to silence any critics (Santaolalla, 2023). They end up harming the local environment and causing infrastructural damage to local communities, hindering development. In contrast, bribery cases are minimal in Denmark due to strict laws and good governance. Denmark introduced a ban on bribery and receiving gifts by public officials 1676, which was renewed by imposing huge penalties in 1700 (Mungiu-Pippidi, 2014). Several groups of officials were addressed, including customs officials, public servants, and clericals. Fixed fees were set for certain services, reducing the tendency to ask for bribes, and the culture was passed on. Good Danish governance encourages collective action from the government, private sector, and civil society to counter corruption. Efforts are directed towards controlling foreign bribery, resulting in false accounting and money laundering (OECD, 2023). Citizens enjoy quality services in health and other sectors by curtailing bribery which contributes to their good well-being. Thus, the freedom to solicit bribes makes Mexico more corrupt as compared to Denmark, where fixed rates apply, and all authorities are on the lookout for bribery.
Procurement corruption is the other problem that entails misuse of public office where an official bypasses official requirements to award benefits to acquaintances. Mexican public procurement officials overpriced procurement contracts to obtain kickbacks from the contracts. A survey conducted by INEGI in 2016 reported that 82% of participants supported the idea that corrupt transactions often occur between business owners and public servants (Inaki, 2019). The flawed public system makes fair selection of winners in public procurement a huge challenge. The case prompts businesses to offer bribes to public officials to be granted public contracts and avoid any missed opportunities. Contracts are undertaken by less qualified individuals, leading to misuse of allocated funds and failure to achieve desired development goals. On the contrary, Denmark experiences a low risk of corruption and irregularities in the public procurement process. A report by the European Commission showed that businesses believe that corruption bars the company from winning a public tender and that public officials are unlikely to show favoritism when issuing contracts. The local authorities managing the issuance of public contracts are guided by the law to fine and curtail business operations for companies involved in corruption (Denmark Country Risk Report, 2020). The act is further discouraged by excluding the corrupt company from bidding on future tenders, creating an avenue of fair competition. Fairness ensures that the best candidates for the contract are selected, which results in the delivery of effective services like medical supplies for citizens. Hence, procurement corruption continues to drown Mexico into higher scales of corruption, which Denmark has overcome by promoting transparency in accessing public contracts.
Despite the huge differences, acts of embezzlement of funds are common in these countries. Most Mexican leaders in state and municipal offices have been exposed to misuse of public funds while serving their first or second office terms. The governor of the Mexican state, Javier Duarte, was compelled to resign owing to allegations of embezzlement of public funds (Semple, 2017). Businesses and companies are also reported to be engaged in embezzlement, where public funds are diverted to their accounts by corrupt public servants. No sanctions are imposed by judges to control corruption networks (Ahmed, 2017). Mexicans face poor infrastructure and poor housing owing to the inability to use public funds for these development projects. Similarly, Denmark has experienced cases of embezzlement of funds through money laundering, which impacts money circulation in the country. Danske Bank money laundering is one of the largest scandals by a financial institution involving the illicit transfer of 200 billion Euros from Russia and other Soviet States through their Estonian Branch (Lynch, 2022). The corruption case affected the country by causing erosion of trust in the integrity of the financial system, forcing taxpayers to subsidize the bank and reducing access to credit. Citizens need help to meet their needs and invest in projects that will facilitate economic development, leading to a dragged economic growth. Thus, there is a need for tougher measures that will help counter cases of public funds embezzlement that drag economic development.
In conclusion, corruption remains a huge problem that requires the implementation of appropriate measures to control future cases. Anti-corruption policies and laws will contribute to a just society where citizens can access services equally leading to improved well-being. The strict rules and regulations imposed by the Danish government counter the cases of procurement corruption and bribery leading to equal access to services by their citizens. Denmark imposes fines on businesses that are guilty of paying bribes to secure public contracts and ensures that they are barred from future bidding. The case is different for Mexico, where judges fail to impose sanctions meant to break the corruption network, as this contributes to further misuse of funds by those in government offices. Mexico should follow the example by toughening its legal systems and coming up with new laws that will help curtail corrupt behaviors. Effective law enforcement is crucial to ensure that all corrupt individuals are punished for acting as a warning to other proprietors. Therefore, anti-corruption policies will help solve the corruption issue and allow Mexico to achieve higher ranks on the corruption index.
References
Denmark corruption index. (n.d.). https://tradingeconomics.com/denmark/corruption-index
Denmark Country Risk Report. GAN Integrity. (n.d.). https://www.ganintegrity.com/country-profiles/denmark/
Inaki, A.A.Overview of corruption and anti-corruption efforts in Mexico. (n.d.). https://www.u4.no/publications/overview-of-corruption-and-anti-corruption-efforts-in-mexico.pdf
Lynxh, S.N. (2022). Danske Bank pleads guilty to resolve long-running Estonia money … (n.d.-a). https://www.reuters.com/legal/danske-bank-pleads-guilty-resolve-long-running-estonia-money-laundering-probe-2022-12-13/
Mexico corruption index. (n.d.). https://tradingeconomics.com/mexico/corruption-index
Mungiu-Pippidi, A. (2014, February 1). Becoming Denmark: Historical designs of corruption control. ERCAS. https://www.againstcorruption.eu/publications/becoming-denmark-historical-designs-of-corruption-control/
Santaolalla, X. (n.d.). State crime, extraction and cartels: The meaning of mining in Guerrero, Mexico. ReVista. https://revista.drclas.harvard.edu/state-crime-extraction-and-cartels-the-meaning-of-mining-in-guerrero-mexico/
Semple, K. (2017, April 16). Javier Duarte, Mexican ex-governor accused of diverting money, is captured—the New York Times. https://www.nytimes.com/2017/04/16/world/americas/mexico-javier-duarte-captured.html
Denmark must urgently step up its efforts to fight foreign bribery … (n.d.-d). https://www.oecd.org/denmark/denmark-must-urgently-step-up-its-efforts-to-fight-foreign-bribery-says-the-oecd-working-group-on-bribery.htm
Ahmed, A. (2017a, December 2). Mexico’s government is blocking its anti-corruption drive, Commissioners say. The New York Times. https://www.nytimes.com/2017/12/02/world/americas/mexico-corruption-commission.html
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