Corruption

• WB has defined corruption as use of public offices for personal purpose.

• 2nd ARC : Corruption = Monopoly + Discretion + Secrecy – Accountability.

• In Economic terms, rental activity. Administrators paid for their services.

• This remuneration paid for 2 reasons
  To get the things done To prevent the things from getting done

• One of the features of formalism

• In economics corruption is considered desirable as it being efficiency

• It is functional also : As it helps systems the system to overcome dysfunctionalting of bureaucracy (Time 2 cost overruns, red Law and bring efficiency in administrative.

• It has motivation of people to work in a more effective manner.

Reasons:

Political, Economic, Administrative, Sociological & Cultural

Political

• In a democratic polity, political parties spend huge money during election – financed by black money. Once in power, they try to recover ‘investment’.

• PE also controls ‘FoP’, have the discretionary power to indulge.

• For example : According to election watch, a non- NGO in 2000 elections, PPs have spent 20,000 cr. of rupees to contest for elections & win them. Money power plays an important role in deciding the outcome of electoral process. This is due to widespread ignorance & illiteracy on part of electorate.

Economic

• Scarcity of resources : One of the major causes. Limited resources combined with maximum number of beneficiaries result in high levels of competition for possession of these resources. Resulting in high “prices”. Affordability of these high ‘prices’ decide who will possess.

In India, Economic corruption was due to 2 major reasons in 1950s – 1990s

1. Predominance of PSEs & their monopoly on distribution of service.

2. Huge expenditure by government since 70s on development but people participation missing

PSEs were used as a means by PE to distribute the scarce resources to few sections. Whereas lack of people parocipation in development scheme had resulted in massive levels of corruption.

Social & Cultural

Globalisation of Indian economy has resulted in availability of Luxurious commodities in Indian market. Neo-rich sections of society were influenced by standards of living in western countries & tried to imitate their habits & customs resulting in huge rise in consumption Exp – popularly known as ‘demonstration effect’.

Middle class people could not afford these learning because of their limited income & tried to expenditure their opportunities to earn more through corruption.

• Also been a rapid decline in moral values of society because of capitation. Conscpicous consumptions has become order of the day in which people are judged not on the basis of their honesty but on the basis of their ability to earn more, even through illegal means.

• High levels of tolerance to corruption has resulted in ligitimination of corruption in society.

Administrative

• Centralised planning process along with anarchic rules & regulations have reflected in massive corruption. Administrations are being protected through various provisions of constitution and also through continuation of 19th century administrative structure which had given unlimited discretionary powers to officials along with absolute lack of all.

• Judiciary also has failed to curb corruption because of inordinate delay in judicial process.
  Impact

• Reduced growth Rate by 2% p.a. 2% G.R. could have had a major impact on poverty.

• Results in distortion in production process — precious resources being diverted for luxurious purposes. Ep. Water for cube in Kerala.

• BPL are paying bribes to the tune of 27,000 cr. p.a for those essential services which should be provided to them for free of cost as per government provision as per planning commission.

• According to Planning Commission, government spends Rs. 3.65 to transfer Rs. 1 to people living BPL on an over cage.

• Results in inflation as producers would transfer the burden of bribes on final consumers.

• Results in major environmental problems as licences / clear ones are given to private sector by flouting R & R.

• Major threat to safety & security of the country as low enforcement agencies for might relax norms for personal benefits. Ep. 1022 Mumbai Blast – RDX transferred illegally through sea routes because corruption in customs and excise department.

• Results in widening gap between rich and poor as rich can have better control over FoP whereas poor can’t penetrate the system.

• Drastic decline in morale of officials as honest are not rewarded and corrupt not punished.

Measured taken & other suggestions

• Since independence various committees to eradicate corruption.
  — Santahan Committee (1964) recommended setting up of CVC to check administrative corruption & Lokayuktas & Lokpals to eliminate to eliminate political corruption at state & union levels respectively.
  — First ARC : Amending the constitution ensuring accountability of officials. Second ARC repeal of article 311.
  — Second ARC – Confiscating assets of officials to recover money lost by government, setting up of fast-track courts repeal of article 311 which ensures security of ………. to officials, effective implementation of RTI, passage of whistle clauses. Act, Repeal of anarchic law, R&R.

• Officials secrets Act should be replaced with National Secrets Act

• Making recommendations of Social Audia Mandatory

• Simplifying R&R by reducing discretionary powers of officials

• Introducing competition in service delivery mechanisms

• Charging civil services code of conduct R&R to make bureaucracy directly accountable to people for their performed.

• Strict implementation of Supreme Court diverting on price reforming to deparitiase law enforcement agencies.

• Passage of National Judicial Accountability Bill to eliminate corruption in judiciary.

• State funding of election to release political elections.

• Amendments to anti defection law.

• Open bidding process in place of FCFS process for pressing precious resources

• Involving LSG in pro-active manner in matter of administrative to empower people at the bottom of ladder.

• Introduction of e-governance to ensure transparency & accountability within the system.

• Effective implementation of citizens’ charters.

Criticism against e-governance leads to centralization. All information with Chief Executive. So all decision can be taken by team. But not valid as theirs transparency & he can be made accountable. Though distributing responsibility down the level he is also devolving accountability.

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