Corruption can be defined as the fraudulent and dishonest use of power or authority and in most cases involving the exchange of money to get a service wrongfully. Most cases that involve corruption acts are illegal notwithstanding that corruption in itself is illegal. Nevertheless, corruption is rampant in almost all economies in the world but in most cases is practiced in the developing countries that have not readily digitalized their economies where one can get a service online. This to a great extend hinders the growth of these economies make them either develop at a snail pace or stagnate at specific levels for lengthy periods. This happens due to the prevention of free functioning of the natural laws of that given economy.
Corruption on these economies leads to the unequal distribution of government resources making the small business start-ups face unfair competition from already established organizations or companies who already have illegal connections. It also secludes the small business enterprises from flourishing since capital is only availed to the already established companies since ranked to be able to pay any amount loaned to them. The tenders are also given to the already established companies that can pay kickbacks thus disadvantaging the small businesses. This causes detrimental effects to the owners of these SMEs and leads to closure, eventually leaving them impoverished. This in the face of it leads to the creation of a shadow economy that is not self-sufficient and thus avoids the paying of taxes thus pulls down the already established economy.
In the education and the health sector of these developing countries, corruption facilitates the seclusion of the rich from the poor where you find the best schools and hospitals being left for the rich who have well-established connections and resources use them. This leaves the poor languishing with the hospitals and schools that lack facilities ample for learning and treatment respectively. This has caused infant mortality in corrupt countries rated from statistics to be three times higher than in corruption-free countries and the literacy rate is below 25%. These factors gradually create a rift between the rich and the poor, leading to exposure of the latter citizens to low living standards which limits the growth of a country generally.