Friday, December 18, 2015

India's corruption and competitiveness

Latest: Corruption and Money Laundering

New Delhi, March 23 (IANS): The Aam Aadmi Party's electoral success in the Delhi assembly polls is a reflective of how the people of capital rate corruption as an important criterion that has to be bettered over time in India.
Corruption is an endemic problem in India and often takes various forms. Very often, it takes the form of public corruption but can also be witnessed in the private domain. Some of the scandals that have rocked India in the past decade include the coal scam, the 2G scam, corruption in the run-up to the Commonwealth Games et al. These can be categorized as cases of political corruption that led to the ultimate downfall of the previous union government. The present government has made a good start with e- auctions of coal blocks and spectrum. The case of Satyam, if not an outright case of private corruption, pointed out as to how a corrupt mindset can wreak havoc on the growth story of an entire economy.
In India, most recently, the focus has been on public corruption with public perception that whatever government comes; public officials at lower levels are bound to remain corrupt till the system is somehow reformed at all levels. India has a system of laws in place for dealing with corruption and improving transparency like the Prevention of Corruption Act and Prevention of Money Laundering Act and the Right to Information Act, among others. While these have to an extent made government machinery somewhat accountable, corruption at the lower levels remains a challenge that has to be addressed.
The lowermost level is where the citizen interacts with the state most often and faces harassment, and this is where there is a governance deficit. The leadership at the top certainly helps to create a culture, which acts without fear and favour, but the agony of the citizen persists at lower levels. The focus on transparency and usage of technology to solve people’s problems should be looked at as a solution at lower levels. It has to do with public officials like police officials as well as in the lower level judiciary as well as a clerk in a government department and their attitude towards the citizens of India.
The Merriam-Webster dictionary defines corruption as ‘impairment of integrity, virtue, or moral principle’. Thus, it is not just a social and economic problem but at a deeper level a moral one. One may ask why does one pay a bribe? The answer may be because of getting things done quickly (speed money) or because it has become institutionalized within the system (Think of the money given for registering a property). It also could be because the economic cost of paying a bribe that is lesser than the actual fine/tax. (Think of motor vehicle challans that one gets away with a payment of Rs.50-Rs.100 to the traffic police). Corruption often manifests itself in various ways.

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