Title

THE ROLE OF SOCIO-ECONOMIC FACTORS ON CORRUPTION IN INDONESIA

Presentation Format

Poster Presentation

Abstract/Description

THE ROLE OF SOCIO-ECONOMIC FACTORS ON CORRUPTION IN INDONESIA

Topaz A. Prawito 1) and Iin P. Handayani 2)

1) Honors College, Murray State University, Murray, KY, USA

2) Hutson School of Agriculture, Murray State University, KY, USA

ABSTRACT

Corruption has been one of the longest lasting problems within a nation’s economy all around the word. There is a complex relationship between the socio-economic factors and corruption. Having both direct and indirect effects on the nation’s economy as a whole, it is important to analyze how such factors truly influence the business arena. Despite the constant progress towards globalization, there is a distinct contrast to the business culture of the Western world. As shown by Transparency International, developing countries tend to be ranked with low CPI (Corruption Perception Index) scores, which translates into high corruption level. Many theories focus on external factors as the main root of corrupt activities; the internal factors, however, are often overlooked. Internal factors embedded within a country, such as its inherent culture, level of consumerism, and other socio-economic factors turn the gears to constantly stimulate the inescapable corruption cycle in many developing nations, including Indonesia. Based on this study, Indonesia’s most visible internal factors of corrupt activities are the rising consumerism level and the widening income gap of the citizens. Together, they result in heavy social pressures to earn more income through questionable methods. In the process, corrupt activities tend to be more common in certain parts of Indonesia’s society.

Key words: Indonesia, socio-economic, corruption, consumerism, culture

Location

Small Ballroom, Curris Center

Start Date

April 2016

End Date

April 2016

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Apr 20th, 10:00 AM Apr 20th, 11:30 AM

THE ROLE OF SOCIO-ECONOMIC FACTORS ON CORRUPTION IN INDONESIA

Small Ballroom, Curris Center

THE ROLE OF SOCIO-ECONOMIC FACTORS ON CORRUPTION IN INDONESIA

Topaz A. Prawito 1) and Iin P. Handayani 2)

1) Honors College, Murray State University, Murray, KY, USA

2) Hutson School of Agriculture, Murray State University, KY, USA

ABSTRACT

Corruption has been one of the longest lasting problems within a nation’s economy all around the word. There is a complex relationship between the socio-economic factors and corruption. Having both direct and indirect effects on the nation’s economy as a whole, it is important to analyze how such factors truly influence the business arena. Despite the constant progress towards globalization, there is a distinct contrast to the business culture of the Western world. As shown by Transparency International, developing countries tend to be ranked with low CPI (Corruption Perception Index) scores, which translates into high corruption level. Many theories focus on external factors as the main root of corrupt activities; the internal factors, however, are often overlooked. Internal factors embedded within a country, such as its inherent culture, level of consumerism, and other socio-economic factors turn the gears to constantly stimulate the inescapable corruption cycle in many developing nations, including Indonesia. Based on this study, Indonesia’s most visible internal factors of corrupt activities are the rising consumerism level and the widening income gap of the citizens. Together, they result in heavy social pressures to earn more income through questionable methods. In the process, corrupt activities tend to be more common in certain parts of Indonesia’s society.

Key words: Indonesia, socio-economic, corruption, consumerism, culture