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Great article on corruption in India

25 February 2010 108 views No Comment

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The most disquieting aspect of the widespread corruption in India is the fact that it is not anymore confined to politicians or the government machinery alone. It is prevalent amongst almost every section of the society at every level.As the practice of corruption is a dishonest act, one has to think that most of the Indians are dishonest, which could be different only in degree between the individuals. As the reason for the dishonesty is greediness and the desire to get things done at any cost one can think that most of the country men are greedy and do not anymore think that the means should justify the ends. This is not a flattering statement and many readers would desire that it would not be so and such statement could have been avoided. But, the fact is that most of the Indians are involved in corrupt practices in one way or the other, either due to greed or due to so called compulsion. In any case, the willingness to sacrifice for the sake of not getting involved in corrupt dealings is conspicuous by its absence amongst the most.Today, if one would say that any particular Indian is honest to the core, it could only be a case of exception rather than a rule.The study of world phenomenon on corruption has repeatedly branded India as one of the most corrupt countries in the world. Unfortunately, this view has not disturbed most of the Indians at all and they do not seem to care as to what others think of them; so long as the existing systems and practices would allow them to make money and get things done in one way or the other.The irony is that India is still considered to be a very religious country and it is still widely believed that the religion is the basis of Indian life, thoughts and actions. This is obviously true, considering the fact that there are hundreds of temples, churches and mosques spread all over the country and they are all densely visited day in and day out by the feverishly praying Indians.
Is not religious ethos contrary to corruption and dishonest practices ?The unfortunate situation in India is that those who call themselves most religious are often found to have indulged themselves in dishonest practices on many occasions. Several of the religious centres, of all religions, are suspected to be steeped in nepotism, as such incidents have been repeatedly published in the press & Media.

It does not shock Indians anymore to know that not only the politicians, ministers and IAS & IPS officers are corrupt but even the judges, professors, doctors,Bankers,Lawyers,Railways, Transport,Police, Govt low cadre Employees and NGO organisations are almost 90% are corrupt 10 % remains is the public who paid bribe to these people.Corruption is not only prevalent amongst rich who are greedy in spite of possessing enough but also prevalent amongst poor.Now,

what can be the future of the Indian society in such conditions?

It can be only frustration, chaos, unrest and even bloodshed in the not too distant future.What is very sad and extremely disquieting about this country is that Ministers suspected to be involved in murder. Chief ministers of swindling crores of public money, senior police officers of molestation charges are all living in comforts and enjoying positions, thus effectively exposing the fact that the crusade against corruption has finally failed in India.Even as the vicious cycle of corruption would continue with one swindling the other, there could be a number of persons who would be left out of this cycle due to inefficiency or commitment to the cause of truth and such persons would be driven down to despair.

Corruption not only has become a pervasive aspect of Indian politics but also has become an increasingly important factor in Indian elections. The extensive role of the Indian state in providing services and promoting economic development has always created the opportunity for using public resources for private benefit. As government regulation of business was extended in the 1960s and corporate donations were banned in 1969, trading economic favors for under-the-table contributions to political parties became an increasingly widespread political practice. During the 1980s and 1990s, corruption became associated with the occupants of the highest echelons of India’s political system. Rajiv Gandhi’s government was rocked by scandals, as was the government of P.V. Narasimha Rao. Politicians have become so closely identified with corruption in the public eye that a Times of India poll of 1,554 adults in six metropolitan cities found that 98 percent of the public is convinced that politicians and ministers are corrupt, with 85 percent observing that corruption is on the increase.How serious is corruption in India, and how great an obstacle to fast growth? Most people would say corruption is very high and a serious obstacle to the 10% growth now sought by politicians.

A joint study by CMS and Transparency International in 2007-08 asked people of their experiences in dealing with 11 government departments. No less than 62% of people said that they had paid bribes or paid “facilitators” to get goods and services that they were entitled to. The study estimated that Rs 21,068 crore per year was paid in such “small” corruption. Three-fourth of citizens felt that corruption was increasing. An interesting point has been made about corruption by Deena Khatkhate in his recent book Ruminations of a Gadfly. He cites sociological studies to show that in non-corrupt states like Denmark people in a village hardly know one another, and family ties are weak — members do not even regularly attend family weddings. But people in an Indian village are in close contact with neighbours, and have strong ties within families and communities. People in authority will be much more corrupt in India, says Khatkhate, since tradition approves the giving of priority to one’s family, caste and religious group over abstract ideals like the public interest. But in Denmark and other developed countries, public interest is viewed as top priority, and this notion is facilitated by the lack of strong family and social networks.

He also gives examples of Indians who blossomed when they went abroad, but could not have achieved similar success in Indian conditions, marred by cronyism, political interference, and wooden bureaucratic rules. Lakshmi Mittal says that if he tried to buy an existing steel plant in India, he would spend half his life chasing netas and babus, whereas he could complete takeovers abroad in a few months. Economists like Amartya Sen and Jagdish Bhagwati, management gurus like CK Prahlad and Pankaj Ghemawat, and astronomers like S Chandrashekhar all attained great heights abroad, which they couldn’t have in India. If corruption, political interference and senseless rules in India make life so difficult, economic growth should be slow. Investment and growth can be high only if property rights are safe and contracts are honoured. If both are endangered by corruption, then investment and growth should be low. But, surprisingly, India has averaged almost 9% growth in the last four years.

Look at different states. The 2006-7 survey showed that the five least corrupt states were Kerala, Himachal Pradesh, Gujarat, Andhra Pradesh, and Maharashtra. These states (with the possible exception of Kerala) have attracted a lot of investment in the last decade. This suggests that low corruption does indeed improve growth.

The most corrupt states, according to the survey, are Assam (top most in Corruption) Bihar (worst by far), Kashmir, Madhya Pradesh, Karnataka and Rajasthan,UP. Investors certainly avoid the three worst states, but invest massively in Karnataka and Rajasthan, both of which are fast-growing. Tamil Nadu is also corrupt and fast-growing. How do we explain this? Maybe petty corruption is high in Karnataka and Rajasthan but big corruption — serious extortion — is low. We simply do not know. The Corruption Perceptions Index of Transparency International measures business perceptions, covering big as well as petty corruption. It does not provide statewise data for India, but provides comparisons across countries. It measures corruption on scale from 0 (totally corrupt) to 10 (no corruption at all). This index consistently shows countries like Denmark, Finland New Zealand and Singapore among the least corrupt countries, with a score of more than nine. Developing countries generally have appallingly low scores, but improving over time. India scored just 2.63 in 1996. This rose gradually to 3.5 in 2006.This is only a marginal improvement. But it’s better than the worsening that many citizens claim to see. China is no better than India. China’s score has also improved just marginally, from 2.43 in 1996 to 3.5 in 2006. Pakistan fares worse, edging up from 1 to 2.4. But all three are fast-growing countries. Indeed, China is a growth superstar. This would seem to imply that high corruption is not fatal for growth. Yet in Africa, corruption appears to be a major cause of economic stagnation.

How do we explain this puzzle?

First, there are many sorts of corruption, and some are worse than others for growth. In states where businessmen pay a hundred fixed, petty sums for clearances, corruption can be no more onerous than a modest tax. In some states, politicians want to maximise money to the exclusion of all else, while in other places politicians want to facilitate industrial growth even while making money. Businessmen say there are “honest” politicians (and states) that will take money and deliver, while other “dishonest” ones will take money and then not deliver.

We need a lot more research to throw light on different sorts of corruption and their different impacts on growth. Only then will we understand why exactly corrupt Bihar grows slowly while corrupt Tamil Nadu grows fast & how to eliminate the root cause of Corruption in india.