A Study of the Effects of Corruption on Economic and

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INTRODUCTION
The purpose of this essay is to reveal what are the causes of corruption and the factors that create the opportunities for corruption, what are effects of corruption on economic and political development in Armenia and in different nations. And according to this findings and the experience of other countries that have succeeded in their fight against corruption suggest the policies for reducing corruption in Armenia.

The first chapter of the essay mainly deals with the terms, definitions, concepts and types of corruption. Corruption as one of the oldest and most perplexing phenomenon in human society exists in every country. The classical conception of corruption, as a general disease of the body politics, was stated by ancient philosophers Plato and Aristotle. They saw corruption as dysfunctional, which is destructive of a particular political order, be it monarchy, aristocracy or democracy. Carl Fredrich defines corruption as a deviant behavior associated with a particular motivation, namely that of private gain at public expense. Van kKlavaren see corruption as the exploitation of the public. There have been a number of different attempts at defining corruption. However no precise definition can be found which applies to all forms, types and degrees of corruption, or which would be acceptable universally. More frequently used definition of corruption is the abuse of public office for private gain. Public office can be abused in many ways, for example, when officials accept or extort bribe; or public office can be abused for personal benefits even if no bribery occurs through the theft of state assets or diversion of state revenues.

The second chapter investigates the variety of causes of corruption and opportunities that governmental structures create for corruption in Armenia and in different nations. Leslie Holmes 9
(1993 p.157) the causes of corruption divides into three categories, cultural, psychological, and system-related. And Klitgaard, R. (1998) brings three dimensions of institutional structure that he considers most critical in bearing on the opportunities for corruption. "1.The monopoly power of officials.

2.The degree of discretion that officials are permitted to exercise. 3.The degree to which there are systems of accountability and transparency in an institution."
The third chapter examines the effects of corruption on economic and political development. According some scholars some levels of corruption may encourage the economic growth. But in case of high level of corruption most scholars agree that corruption has very harmful effects on economic and political development. High scale corruption reduces the efficiency of public spending, raise the budget deficit, reduce budget revenues, dissipate political legitimacy and hinder the democratic development.

The last chapter examines the ways and policies for reducing corruption, such as reform of civil service, judiciary system, tax and custom departments etc. and according to those policies and the experiences of other countries suggest the policies for reducing corruption in Armenia. But for proper implementation of those policies in Armenia is preconditioned by the free and fair elections, politically educated people, and honest leader.

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WHAT IS THE CORRUPTION
As one of the oldest and most perplexing phenomenon in human society, political corruption exist in every country in the contemporary world and it is not exclusively a problem of developing countries. The classical concept of corruption as a general disease of the body politics was stated by ancient political philosophers Plato and Aristotle. Plato in his theory of the "perverted" constitutions-Democracy, oligarchy, and tyranny-worried that these regimes instead of being guided by the law were serving the interest of the rulers. "These fundamental general notions of corruption all practically define corruption as dysfunctional. For it is seen as destructive of a particular...
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