Political Corruption By Government Officials For...

Throughout history, several sovereign nations across the world have been subject to political corruption by government officials for illegitimate personal gain. Corruption used to be a low profile line item. However, today it has reached heights at which the government must get involved to try and cover it up to ensure its secrecy and avoid exploitation. This instance is referred to as Crony Capitalism, which is a theory that has evolved from corruption over a period of time. This idea involves more intervention by the government who achieves its purpose by providing incentives and subsidies to their known business partners in specific operating fields. They favour this particular set of business owners who they keep close ties with over†¦show more content†¦They drift away from the rule of law which they themselves have established to maintain social control over their country. The government chooses to monopolize over businesses in pursuit of getting a larger share of mon ey. However, most of the time these turn into sunken costs, which they then try to cover by raising tax rates. Countries that were regarded as miracles are nothing more than havens now, for crony capitalists to get rich the easy way (Kang, 3). An example of this is in Canada, where a big incentive in the form of tax credit is given to the Film Producing Industry. The government has been providing tax payers’ money and direct subsidies in an effort to induce film production in their province. Currently, film and television tax credits cover up to 35% of labour costs all over Canada, except for Quebec where it covers up to 45%. This does not include the additional tax credits that are provided to cover up the total production costs. In Alberta, the film and television industry demanded $18 million for a project worth $32 million of building a film studio in Calgary. The government has provided them with $10 million from property tax which means that the remaining $22 million w ill be obtained from taxpayers at their cost. The film industry in Alberta claims that this is beneficial since every buck that taxpayers contribute towards subsidies will result in a 10 fold return to the economy. This demonstrates how Crony