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Economically, it diverts resources away from their most productive uses and acts like a regressive tax that supports the lifestyles of elites at the expense of everyone else.
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The second phenomenon that is often identified with corruption is that of patronage or clientelism. Because people have rationally chosen to protect their reputation for honesty, the entire society has stayed honest.
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Among industries, natural resource extraction and construction have long been seen as exceptionally prone to corruption. It can help those societies that are still struggling with the problems that Britain faced in the 19th century.
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