Knowledge Horizons - Economics Volume 9, No. 3, pp. 49-55 , © 2017 Pro Universitaria “Dimitrie Cantemir” Christian University Knowledge Horizons - Economics Volume 9 , No. 3, pp. 49 - 55 P-ISSN: 2069-0932, E-ISSN: 2066-1061 © 2017 Pro Universitaria www.orizonturi.ucdc.ro NEPOTISM AND CORRUPTION IN INSTITUTIONS AND COUNTRY'S ECONOMY Dr. Sc Arsim GJINOVCI1 , BSc. Dren A. GJINOVCI 1 Dr.Sc, Lector at University College of International Management Studies 'Globus' Abstract Nepotism usually means hiring relatives, close friends, regardless of their merits and abilities. While Key words: corruption is a permanent risk to the economic system, but also for the country's legal system. The Nepotism, corruption, purpose of this paper is; to evaluate the factors affecting the appearance and development of nepotism justice institutions, and corruption. Then, analyze the impact of nepotism and corruption in the country's economy. The the economy of the impact of nepotism in the hiring and advancement of relatives in important sectors of the country and country the impact of corruption and nepotism in the judicial institutions. JEL Codes: Results of the survey will be useful to researchers who will deal with the analysis of factors influencing E26 nepotism and corruption. levels and it can be observed a higher inclination of the 1. INTRODUCTION poorest countries in corruption acts that he present in developed countries. Corruption is a widespread Nepotism may occur in different areas of the phenomenon around the world as in the developed as organization of society (nepotism, 2013). Nepotism well as developing countries. However, market places exists throughout the world, but nowhere dominonë in and centralized economies that are faced with more in political, economic, social and comprehensive as it is the past and in the current period (Mihaiu and Opreana, suppose to; countries of Eastern Europe, South Eastern 2013). Gjinovci (2014), From a legal perspective, Europe, the Middle East, and even in some EU distinguishe Corrupt two types of behavior; Corruption countries. According to the Strasbourg Convention active, and passive Corruption. We are aware that (1999), corruption threatens legal norms, democracy, corruption, a huge stretch or small, is a threat to all human rights and freedom, undermines the system of participants in a democratic society, especially to state management, social justice and fairness, distorts countries that are in a transition period. Fight corruption fair competition, hinders economic development and and put under control at the moment he appeared. The moral foundations of society. The word "Nepotism" is reason is easy to fight corruption at the time of its derived from the Italian "nepote" which means, nip, presentation, it is very easy to identify and prevent. In which has been used by the papal practice of giving more general terms, corruption is generally degrading special favors grandchildren or their relatives. So, effect on the system and social order. The boundaries of favoring relatives on the basis of family ties, saying corruption are as inaccessible as is unattainable and rather that nepotism means employment of relatives or human greed. Increase human greed does not cure the close friends, regardless of their merits and abilities justice system. Acts of corruption, related to violation of (Dictionary, 2013). legal provisions and the professional code of ethics by For Kregar (1997), corruption is a pathological the employees as public or private sector. According to phenomenon, systematic operation in which the ruling Antonic (et. Al., 2001), corruption appears in various political class put personal interest above political fields and in different ways. As an illustration, we can community. direct attention only some forms of corruption in the Corruption is a phenomenon that is found both judiciary, police, customs, health, and corruption of local in developed and in developing countries, but at different authorities. But Halimi (2014), in an article titled trailer; 49 Knowledge Horizons - Economics Volume 9, No. 3, pp. 49-55, © 2017 Pro Universitaria "Corruption is the cancer of Kosovo society ', corruption any admissions, meeting the criteria of employment or poses as influential factors in the destruction of that promotion, there have been almost no once properly, it country's economy. had repercussions on the advancement of the Nepotism may occur in various areas including: organization and development of the public sector. So, Political nepotism; Family nepotism; Nepotism in the on the "criteria" of nepotism and professionalism it has organization; Nepotism in employment / advancement. not been possible to establish the proper authorities and Political nepotism affects the granting of special favors state portfolios and professional administration. Because political collaborators in public organizations. For only a strong administration and professional experience Institute for development policy (2014), politicization of led me to the right people can build successfully on the public organizations, has brought the first effects. economic development field and in every field of life. Appointing political people on the boards of public Perhaps, we do not have happened to encounter organizations. Now, the phenomenon of political anywhere in Europe, in state bodies and government nepotism, has taken deep roots in provincial and hiring and designation of officials in leadership positions regional mentality in society, and is not nothing less of political and economic to do without public tenders, harmful than family nepotism. This phenomenon, but in through which the real appreciation of staff experience the political mentality, it is also installed to the general and professional skills . By eliminating the effects by public. Demi, A., (2014), estimates that the politicization family ties, as has happened and is still happening in the of public organizations has started since Kosovo's Balkans, especially in: Kosovo, Albania, Macedonia, declaration of independence. Favoring relatives on the Montenegro, B & H, etc. Nepotism family (clan), many basis of family ties, which more precisely means times is on starting from appointment to the highest state nepotism in one way or another in most cases allows the and to lower levels near the municipal administrations. employment of relatives without adequate qualification To take only the example of the appointment of senior and merit, with the later consequences for the institution public officials / state, we would realize that almost none and the society itself. According to the Kosovo are named based on fulfillment of the conditions set by Democratic Institute (2014), central public organizations the law, namely the contest, to be appointed or elected have been the most suitable for rehabilitation and to these positions, the minimum work experience. Errors accommodation of party militants. Political and family in employment in Kosovo began with the establishment influences, led to the employment of approaches in of international administration (UNMIK, 1999). And here different positions in the public and state institutions, lies the fatal error that made UNMIK together after employment included all the important sectors of the Kosovo's government. Once, instead brought temporary country; Employment in public administration, acts of normative and legal conditions for employment, employment in managerial staff in ministries, ranging from the duty clerk just to the position of employment of relatives in departments, important president of the country, making professional selection domestic sector, employment in the security bodies, of applicants for admission to work , what happened employment agencies, employment in public today is continuing, namely employment and corporations, employment in public media (Gjinovci, A. , appointment of people, not by legal and professional 2016). According to the organization Arise (2007), norms, but on the basis of family nepotism. But this has Kosovo is located politicization total administration, happened in several public representations, diplomatic which is in complete contradiction with European criteria most southeastern Balkan countries. For, Abdala, M. (et, for the reform and construction of civil administration and all 1994), whether employees are in competition with any the continuation of this would deepen the economic person eligible to advance their probability is very low. crisis in Kosovo and will undermine stability its Therefore, taking into account legal violations that are economic, political and social. Political parties in power made in terms of hiring people without merit and without to frame policy kin and client-based phenomenon have fulfilling the criteria competitive, we should not be been all those political forces that have been in power for surprised why today in these countries dominates years. Inappropriate employment has (had) a negative economically backward, with a population of poor in the impact for the country and beyond. So do the preliminary extreme, youth unemployed . Kayabaşı, Y. (2005) criteria for the definition of employment, but employment believes that the phenomenon of preferential treatment by group influences, tribal, or clan affect the arrival of is also considered a "form of corruption" that appears in people in positions without merit, the negative impact; the process of political decision-making, it is at the same the country's economy for integration, with negative