The study of corruption can be divided into two major schools of thought. First, liberal theories consider corruption as an unavoidable stage in the evolution of government as can be seen in numerous Third World countries. Second, the universalistic approach interprets corruption as a universal and moral problem. In this context, corruption is defined as a transaction in which wealth is exchanged for power. In the analysis of corruption, several factors are significant: the effects on society, the perpetrators, the degree and context of corruption, its visibility, the agencies involved in fighting corruption, and the available punishment. At the same time, particular conditions tend to favor corruption: the presence of a monetary system, an incomplete modernization in the institutions of a country (as is often the case in Third World countries), and pronounced social inequalities. The article concludes that the universalistic approach permits a more comprehensive and inclusive study of corruption.