• World Bank: corruption is abuse of public funds or public office for private gains
  • Prevention of Corruption Act 1988: no specific definition of corruption has been provided but certain activities are termed corrupt eg
    • acceptance of illegal gratification as motive for doing or not doing official act
    • obtaining valueable gift without consideration
    • favoring/ disfavoring person w/o consideration of merit
    • obtaining resources or property disproportionate to income
    • obtaining monetary advantage from person w/o serving any public interest
  • acc to above law, focus is largely on gratification and pecuniary advantage

However, range of activities detrimental to public interest, which needs to be included as corrupt acts:

  • use/abuse of confidential info for pvt purposes

  • favoring relatives/friends in awarding contracts

  • accepting outside employment while working in civil services

  • wasting public money by exorbitant private spending

  • gross perversion of constitutional provisions & democratic values

  • interference in decision making to secure positions and promotions for one’s supporters

  • manipulation in purchase of machinery, property, equipment etc

  • protecting the incompetence of subordinates due to favoritism

  • Corruption is akin to cancer, how a cancer cell spreads and destroys the entire body, corruption destroys the society.

  • Corruption is more like AIDS, as it weakens the immune system.

  • People’s indifference is the best breeding ground for the corruption to grow.

  • Corruption is the enemy of development and of good governance.

  • If country is to be corruption free, three key societal members have to make a difference, the father, the mother, and the teacher.

Factors responsible for Corruption in India

  • Historical Factors
    • British admin system was excessively corrupt
    • legacy continues to affect current operation
  • Societal Factors
    • Corruption has become acceptable phenomenon with no resistance
    • breakdown of family & societal values
    • increased emphasis on materialism
    • overall decline in morals, ethical standards
    • ethics severely compromised in field of education eg cheating in exams
  • Institutional factors
    • concentration of vast discretionary powers in hands of state
      • licence raj legacy
    • CSer often carry low image of themselves & make peace with corrupt behaviour as it suits their self image
    • honest CSer served with adverse consequence demoralizing them sigificantly
    • Govt procedures extremely complicated, difficult to avail govt services, as a result, citizens try to find easy ways to get around system
    • low risk high reward activity
      • due to ineffective criminal justice system
  • Political factors
    • increased role of money & muscle power in electronics
    • politics has become business
      • politicians try to recover election expense after assuming power
    • retaining power become most imp factor in politics
      • pol parties do not refrain from horse trading

Effects of corruption

Economic

  • tax collection suffers
  • discourage foreign investment
    • ease of business affect
  • crony capitalism distorts level playing field, adversely affects small business
    • discourage innovation, entrepreneurship
  • low compliance with regulations, reducing quality of govt services & infra

Societal

  • drains society of moral, ethical, mental energy incl. willpower of honest stand up against wrongs in society
  • destroy social capital and ppl end up becoming more distrustful of each other
  • welfare schemes & programs suffer & benefits do not reach intended beneficiaries

National Security

  • terrorism, extremism get legitimacy in eyes of people
  • various security problems such as terrorist attacks
  • delegitimizes authority of state

Politics

  • criminalization of politics as well as increases role of money and muscle power in elections
  • erosion of faith in institution of democracy

Administration

  • vicious cycle of secrecy, corruption
  • reduced accountability
  • loss of credibility of admin
  • inefficiency, ineffective
  • diversion of funds meant for poor, marginalized

Tackling corruption

  • Prevention of Corruption Act
    • Section 7 of PoCA must be amended to include offence of collusive bribery
    • may be defined as txn where txn outcome leads to unexplained loss for state/public
    • definition of bribery expand to incl. acts
      • wasting public money
      • obstructing justice
      • gross violation of constitutional provisions
    • prior sanction should not be necessary in those cases where accused has been caught red handed or if assets posessed is disproportionate to income
    • must be made high risk, no gain activity
    • all ill gotten money be confiscated and used for public use
    • speedy trial, daily hearing
    • whistleblower protection act

Institutional measures

  • revive Lokpal
    • enforce commitment at UNCAC
  • provision of Delhi Special Police Establishment Act needs to be amended to free from CBI from Govt control
  • prosecution in corruption cases be carried by empanel held after consulting lokpal

Administrative Measures

  • embargo put on post retirement assignments for top position holders at nationally imp & sensitive institutions
  • risk profiling be carried out for all govt job to determine offices that are vulnerable to high risk of corruption
    • officers w/ impeccable track record be appointed here
  • govt orgs should streamline procesess & should be suitably rewarded for same
  • dept manuals should be revised to reduce discretionary powers in hands of civil servants
  • adopt IT measures for transparency & efficiency
  • integrity pacts should be made mandatory
    • eg. ONGC signed IP with CVC & Transparency Intl.

Political Measures

  • need to inc transparency in findings of pol parties by bringing them under RTI
  • State funding of elections may be considered
    • TODO: which countries do this?

Societal Measures

  • fundametnal dueties be brought to life
    • value edu in school, clg
  • active involvement of CSO to create awareness among masses to enforce greater accountability standards
  • ensuring independence of media by introducing cross media ownership norms