When politicians steal from the public purse, it's bad; but psychologists and the courts agree it's the psychological effects of corruption that are most harmful.
The impact of corruption is so important that even the appearance of impropriety is illegal in California.Corruption erodes public trust in democratic institutions.
In California, even if a public official discloses his or her financial interest in a public agency decision and does not participate in or vote on the matter, the remaining board is still prohibited from entering into a contract in which the board member has an interest. The prohibition applies even when there is only a possibility of a financial benefit. It does not matter whether the official’s financial interest is positively or negatively affected.
The International Foundation for Electoral Systems notes that “corruption undermines the efficiency and efficacy of government and erodes public trust in democratic institutions. High corruption perception levels are enough to cause negative economic effects, causing institutional instability and the deterioration of relationships among individuals, institutions, and states.”
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