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COACH Institute of Intercultural Studies,
Hyderabad
Dr. Pothana
Christian Ethics
Corruption
in India
Corruption
in India
Corruption in India
As with many developing nations, corruption
is widespread in India. India is ranked 84 out
of a 180 countries in Transparency
International's Corruption Perceptions Index,
although its score has improved consistently
from 2.7 in 2002 to 3.4 in 2008 (Although this
may be due to the change in polling that the
survey has undergone). Corruption has taken
the role of a pervasive aspect of Indian
politics and bureaucracy.
Corruption in India
History
The economy of India was under socialist-inspired
policies for an entire generation from the 1950s until
the 1980s. The economy was subject to extensive
regulation, protectionism, and public ownership,
leading to pervasive corruption and slow growth.
License Raj was often at the core of corruption.
The Vohra Report was submitted by the former Indian
Union Home Secretary, N.N. Vohra, in October 1993.
It studied the problem of the criminalisation of politics
and of the nexus among criminals, politicians and
bureaucrats in India.
Corruption in India
The report contained several observations
made by official agencies on the criminal
network which was virtually running a parallel
government. It also discussed criminal
gangs who enjoyed the patronage of
politicians, of all parties, and the protection of
government functionaries. It revealed that
political leaders had become the leaders of
gangs. They were connected to the military.
Over the years criminals had been elected to
local bodies, State Assemblies and
Parliament. The unpublished annexures to the
Vohra Report were believed to contain highly
explosive material.
Corruption in India
According to Jitendra Singh, "in the bad old days, particularly
pre-1991, when the License Raj held sway, and by design, all
kinds of free market mechanisms were hobbled or stymied, and
corruption emerged almost as an illegitimate price mechanism, a
shadowy quasi-market, such that scarce resources could still be
allocated within the economy, and decisions could get made.
These were largely distortions created by the politico-economic
regime. While a sea change has occurred in the years following
1991, some of the distorted cultural norms that took hold during
the earlier period are slowly being repaired by the sheer forces of
competition. The process will be long and slow, however. It will not
change overnight." One of the major problems and obstacles to
development that many developing countries face is corruption by
greedy, power-hungry politicians, which is endemic in certain parts
of the world.
Corruption in India
Corruption today
Corruption
across various States
of India
Corruption in India
Extent of corruption in Indian states, as measured in a 2005
study by Transparency International India.
As per Transparency International India, "India Corruption Study
2005", Kerala is the least corrupt State in India. Bihar, on the
other hand, is the most corrupt State. Jammu & Kashmir ranks
next to Bihar. Himachal Pradesh followed by Gujarat is ranked
second IRILMM’s Digest of Readings on Vigilance & Ethics in
Public Procurements 4 and third respectively after Kerala. This
study was carried across eleven public services.
Kerala was found least corrupt in all these services. Himachal
Pradesh was found less corrupt. In Gujarat services such as
education, judiciary and land administration was ranked as more
corrupt compared to other states. However in other services,
Gujarat ranked better.
Corruption in India
Some people in India strongly believe that the root of corruption lies at the higher levels,
and that the major conspirators have to be punished first.
Corruption in India
Criminalization of Indian politics is a problem.
In July 2008 The Washington Post reported that
nearly a fourth of the 540 Indian
Parliament members faced criminal charges,
"including human trafficking, immigration
rackets, embezzlement, rape and even murder". At
state level, things are often worse. In
Uttar Pradesh Assembly elections 2002, candidates
with criminal records won the
majority of seats.
Politics
Corruption in India
Bureaucracy
A 2005 study done by Transparency International (TI) in India found that
more than 50% of the people had firsthand experience of paying bribe or
peddling influence to get a job done in a public office. Taxes and bribes are
common between state borders; Transparency International estimates that
truckers pay annually $5 billion in bribes. A 2009 survey of the leading
economies of Asia, revealed Indian bureaucracy to be not just least
efficient out of Singapore, Hong Kong, Thailand, South Korea, Japan,
Malaysia, Taiwan, Vietnam, China, Philippines and Indonesia; further it was
also found that working with the India's civil servants was a "slow and
painful" process. Officials often steal state property. In Bihar, more than
80% of the subsidized food aid to poor is stolen.
Corruption in India
In cities and villages throughout India, Mafia Raj consisting of municipal
and other government officials, elected politicians, judicial officers, real
estate developers and law enforcement officials, acquire, develop and
sell land in illegal ways. Many state-funded construction activities in
India, such as road building, are dominated by construction mafias,
which are groupings of corrupt public works officials, materials
suppliers, politicians and construction contractors. Shoddy construction
and material substitution (e.g. mixing sand in cement while submitting
expenses for cement) result in roads and highways being dangerous,
and sometimes simply washed away when India's heavy monsoon
season arrives.
In Government Hospitals, corruption is associated with non
availability of medicines (or duplicate medicines), getting admission,
consultations with doctors and availing diagnostic services.
Corruption in India
Judiciary
Corruption is rampant in the judicial system of
India. According to Transparency International,
judicial corruption in India is attributable to factors
such as "delays in the disposal of cases, shortage
of judges and complex procedures, all of which
are exacerbated by a preponderance of new
laws".
Corruption in India
Police
Despite state prohibitions against torture and custodial
misconduct by the police, torture is widespread in police
custody, which is a major reason behind deaths in
custody. The police often torture innocent people until a
'confession' is obtained to save influential and wealthy
offenders. G.P. Joshi, the programme coordinator of the
Indian branch of the Commonwealth Human Rights
Initiative in New Delhi comments that the main issue at
hand concerning police violence is a lack of accountability
of the police.
Corruption in India
The chief economic consequences of corruption are the loss to
the, an unhealthy climate for investment and an increase in the
cost of government-subsidised services. The TI India study
estimates the monetary value of petty corruption in 11 basic
services provided by the government, like education,
healthcare, judiciary, police, etc., to be around Rs. 21,068
crores. India still ranks in the bottom quartile of developing
nations in terms of the ease of doing business, and compared
to China and other lower developed Asian nations, the average
time taken to secure the clearances for a start up or to invoke
bankruptcy is much greater.
Corruption in India
According to Transparency International, Bihar is the
most corrupt state in India.
Magazine said in 2004 that Bihar has become a
byword for the worst of India, of widespread and
inescapable poverty, of corrupt politicians
indistinguishable from mafia dons they patronize,
caste-ridden social order that has retained the worst
feudal cruelties.
Corruption in India
Anti-corruption
efforts
Corruption in India
Right to Information Act
The Right to Information Act (2005) and equivalent
acts in the states, that require government officials to
furnish information requested by citizens or face
punitive action, computerisation of services and
various central and state government acts that
established vigilance commissions have considerably
reduced corruption or at least have opened up
avenues to redress grievances. The 2006 report by
Transparency International puts India at the 70th
place and states that significant improvements were
made by India in reducing corruption.
Corruption in India
Computerization
Bhoomi is a project jointly funded by the Government of India
and the Government
of Karnataka to digitize the paper land records and create
a software mechanism to
control changes to the land registry in Karnataka.
The project was designed to eliminate the long-standing
problem of inefficiency and corruption.
Corruption in India
Whistleblowers
Corruption in India
Whistleblowers play a major role in the fight against corruption
http://www.transparency.org/index.php/news_room/in_focus/2007/whistleblowers).
India even today does not have a law to protect whistleblowers.
However subsequent to the murder of whistleblower Sri Satyendra
Dubey, Government of India after much pressure directed by an order
making the Central Vigilance Commission to hear and protect
whistleblowers. The latest Administrative Reforms Commission also
has suggested to encourage whistleblowing and to protect
whistleblowers. But this benefit is not available to whistleblowers
working to any officer working under state governments.
An ongoing effort can be seen here http://fightcorruption.wikidot.com.
http://www.corruptioninindia.org is another "not for profit" website
dedicated to increase awareness against corruption in India and
contains comprehensive info of corruption in India.
Corruption in India
BRIBERY
A bribery is a form of corruption which involves the
promise of money or a favor to someone in a position of
power, with the hope of influencing that person's behavior.
Bribery is an act of implying money or gift giving that
alters the behaviour of the recipient.
Bribery is defined as the offering or receiving of any item
of value to influence the actions of an official or other person
in charge of a public.
”Bribe” entered English in the 1300s, in the
sense of something stolen; it is derived
from the French briber, “to beg.” Around
the 1500s, “bribe” began to acquire its
current associations with corruption.
Many types of bribes exist:
 Tip
 Gift
 Discount
 Free food
 Free trip
 Free ticket
 Funding
 Sale of property
 promotion (rise of position/rank).
Taking Bribe = Stealing
or Begging
But Recipient consider
as a gift
• As per The World Bank estimates
– bribes paid globally aggregates
to over USD 1 trillion per annum
• Key reasons in India
- Obtaining routine
administrative approvals
- Attempts to win / retain
business
Regulation and or
Regulatory Bodies
 Primary statute to prevent corruption
 Only applicable to public officials
 Premiere national investigating police agency (Like
FBI)
 Anti Corruption Wing of CBI gather intelligence and
investigate corruption cases referred by CVC
 Apex body for exercising
superintendence and
control over vigilance administration
 Also acts on complaints from whistleblowers
 Each state has its own ACB and vigilance cell to
investigate state corruption
Prevention of Corruption Act, 1988
(“PCA”) Central Bureau of Investigation (“CBI”)
Central Vigilance Commission (“CVC”)
set up under CVC Act, 2003
State Anti Corruption Bureau (“ACB”) /
Vigilance Commissions
As there is increase in
corruption the honour
decreases.
India ranks among the world’s top 5 countries in-
 Cricket
 Film Industry-
Bolly,
Tolly,
Kolly woods
 Information Technology
 No. of Millionaires
o Transparency International’s
Corruption Perception Index - 85th
o TI’s Bribe payer’s Index
Among 30 Leading Exporting Countries-
30th
 CPI is the Corruption Perception Index
 A ranking of countries according to the extent to which
corruption is believed to exist.
 The corruption perception index was created in 1995 by
Transparency International.
 It ranks almost 200 countries on a scale of zero to 10,
with zero indicating high levels of corruption and 10
indicating low levels.
 Developed countries typically higher rank.
 Bribery often makes a country less atractive
for foreign investors and may thus keep down
the standard of living in the country
 American companies are forbidden to pay
bribes even abroad. They complain that they are
therefore at a disadvantage to non US
companies in some markets
 Prevents markets from working effeciently
 It prevents open access to all competitors on
equal terms
 Competitors are prevented from competing
on the merits of their products or services
 Often leads to higher prices
 Every citizen has to pay an ‘EXTRA’ fee over the
Govt fee for every
– service, certificate or process in Govt
departments
 Pricelist varies across departments and different
classes of people
 NO BRIBE, NO SERVICE
• Campaign launched in Aug 2007
• Covered all districts of TN, few in AP, Karnataka
• 600 plus colleges & schools and counting….
• 500, 000 students pledged-
‘I will not take or give bribe’
DUTIES TOWARDS
CITIZEN:
“Enable,
Encourage and
Empower Every
Citizen to Eliminate
Corruption at all
levels of Society”
THANK YOU

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Lecture 14; Corruption and Bribery

  • 1. COACH Institute of Intercultural Studies, Hyderabad Dr. Pothana Christian Ethics
  • 3. Corruption in India As with many developing nations, corruption is widespread in India. India is ranked 84 out of a 180 countries in Transparency International's Corruption Perceptions Index, although its score has improved consistently from 2.7 in 2002 to 3.4 in 2008 (Although this may be due to the change in polling that the survey has undergone). Corruption has taken the role of a pervasive aspect of Indian politics and bureaucracy.
  • 4. Corruption in India History The economy of India was under socialist-inspired policies for an entire generation from the 1950s until the 1980s. The economy was subject to extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth. License Raj was often at the core of corruption. The Vohra Report was submitted by the former Indian Union Home Secretary, N.N. Vohra, in October 1993. It studied the problem of the criminalisation of politics and of the nexus among criminals, politicians and bureaucrats in India.
  • 5. Corruption in India The report contained several observations made by official agencies on the criminal network which was virtually running a parallel government. It also discussed criminal gangs who enjoyed the patronage of politicians, of all parties, and the protection of government functionaries. It revealed that political leaders had become the leaders of gangs. They were connected to the military. Over the years criminals had been elected to local bodies, State Assemblies and Parliament. The unpublished annexures to the Vohra Report were believed to contain highly explosive material.
  • 6. Corruption in India According to Jitendra Singh, "in the bad old days, particularly pre-1991, when the License Raj held sway, and by design, all kinds of free market mechanisms were hobbled or stymied, and corruption emerged almost as an illegitimate price mechanism, a shadowy quasi-market, such that scarce resources could still be allocated within the economy, and decisions could get made. These were largely distortions created by the politico-economic regime. While a sea change has occurred in the years following 1991, some of the distorted cultural norms that took hold during the earlier period are slowly being repaired by the sheer forces of competition. The process will be long and slow, however. It will not change overnight." One of the major problems and obstacles to development that many developing countries face is corruption by greedy, power-hungry politicians, which is endemic in certain parts of the world.
  • 8. Corruption across various States of India Corruption in India
  • 9. Extent of corruption in Indian states, as measured in a 2005 study by Transparency International India. As per Transparency International India, "India Corruption Study 2005", Kerala is the least corrupt State in India. Bihar, on the other hand, is the most corrupt State. Jammu & Kashmir ranks next to Bihar. Himachal Pradesh followed by Gujarat is ranked second IRILMM’s Digest of Readings on Vigilance & Ethics in Public Procurements 4 and third respectively after Kerala. This study was carried across eleven public services. Kerala was found least corrupt in all these services. Himachal Pradesh was found less corrupt. In Gujarat services such as education, judiciary and land administration was ranked as more corrupt compared to other states. However in other services, Gujarat ranked better. Corruption in India
  • 10. Some people in India strongly believe that the root of corruption lies at the higher levels, and that the major conspirators have to be punished first.
  • 12. Criminalization of Indian politics is a problem. In July 2008 The Washington Post reported that nearly a fourth of the 540 Indian Parliament members faced criminal charges, "including human trafficking, immigration rackets, embezzlement, rape and even murder". At state level, things are often worse. In Uttar Pradesh Assembly elections 2002, candidates with criminal records won the majority of seats. Politics Corruption in India
  • 13. Bureaucracy A 2005 study done by Transparency International (TI) in India found that more than 50% of the people had firsthand experience of paying bribe or peddling influence to get a job done in a public office. Taxes and bribes are common between state borders; Transparency International estimates that truckers pay annually $5 billion in bribes. A 2009 survey of the leading economies of Asia, revealed Indian bureaucracy to be not just least efficient out of Singapore, Hong Kong, Thailand, South Korea, Japan, Malaysia, Taiwan, Vietnam, China, Philippines and Indonesia; further it was also found that working with the India's civil servants was a "slow and painful" process. Officials often steal state property. In Bihar, more than 80% of the subsidized food aid to poor is stolen. Corruption in India
  • 14. In cities and villages throughout India, Mafia Raj consisting of municipal and other government officials, elected politicians, judicial officers, real estate developers and law enforcement officials, acquire, develop and sell land in illegal ways. Many state-funded construction activities in India, such as road building, are dominated by construction mafias, which are groupings of corrupt public works officials, materials suppliers, politicians and construction contractors. Shoddy construction and material substitution (e.g. mixing sand in cement while submitting expenses for cement) result in roads and highways being dangerous, and sometimes simply washed away when India's heavy monsoon season arrives. In Government Hospitals, corruption is associated with non availability of medicines (or duplicate medicines), getting admission, consultations with doctors and availing diagnostic services. Corruption in India
  • 15. Judiciary Corruption is rampant in the judicial system of India. According to Transparency International, judicial corruption in India is attributable to factors such as "delays in the disposal of cases, shortage of judges and complex procedures, all of which are exacerbated by a preponderance of new laws". Corruption in India
  • 16. Police Despite state prohibitions against torture and custodial misconduct by the police, torture is widespread in police custody, which is a major reason behind deaths in custody. The police often torture innocent people until a 'confession' is obtained to save influential and wealthy offenders. G.P. Joshi, the programme coordinator of the Indian branch of the Commonwealth Human Rights Initiative in New Delhi comments that the main issue at hand concerning police violence is a lack of accountability of the police. Corruption in India
  • 17. The chief economic consequences of corruption are the loss to the, an unhealthy climate for investment and an increase in the cost of government-subsidised services. The TI India study estimates the monetary value of petty corruption in 11 basic services provided by the government, like education, healthcare, judiciary, police, etc., to be around Rs. 21,068 crores. India still ranks in the bottom quartile of developing nations in terms of the ease of doing business, and compared to China and other lower developed Asian nations, the average time taken to secure the clearances for a start up or to invoke bankruptcy is much greater. Corruption in India
  • 18. According to Transparency International, Bihar is the most corrupt state in India. Magazine said in 2004 that Bihar has become a byword for the worst of India, of widespread and inescapable poverty, of corrupt politicians indistinguishable from mafia dons they patronize, caste-ridden social order that has retained the worst feudal cruelties. Corruption in India
  • 20. Right to Information Act The Right to Information Act (2005) and equivalent acts in the states, that require government officials to furnish information requested by citizens or face punitive action, computerisation of services and various central and state government acts that established vigilance commissions have considerably reduced corruption or at least have opened up avenues to redress grievances. The 2006 report by Transparency International puts India at the 70th place and states that significant improvements were made by India in reducing corruption. Corruption in India
  • 21. Computerization Bhoomi is a project jointly funded by the Government of India and the Government of Karnataka to digitize the paper land records and create a software mechanism to control changes to the land registry in Karnataka. The project was designed to eliminate the long-standing problem of inefficiency and corruption. Corruption in India
  • 23. Whistleblowers play a major role in the fight against corruption http://www.transparency.org/index.php/news_room/in_focus/2007/whistleblowers). India even today does not have a law to protect whistleblowers. However subsequent to the murder of whistleblower Sri Satyendra Dubey, Government of India after much pressure directed by an order making the Central Vigilance Commission to hear and protect whistleblowers. The latest Administrative Reforms Commission also has suggested to encourage whistleblowing and to protect whistleblowers. But this benefit is not available to whistleblowers working to any officer working under state governments. An ongoing effort can be seen here http://fightcorruption.wikidot.com. http://www.corruptioninindia.org is another "not for profit" website dedicated to increase awareness against corruption in India and contains comprehensive info of corruption in India. Corruption in India
  • 25. A bribery is a form of corruption which involves the promise of money or a favor to someone in a position of power, with the hope of influencing that person's behavior. Bribery is an act of implying money or gift giving that alters the behaviour of the recipient. Bribery is defined as the offering or receiving of any item of value to influence the actions of an official or other person in charge of a public.
  • 26. ”Bribe” entered English in the 1300s, in the sense of something stolen; it is derived from the French briber, “to beg.” Around the 1500s, “bribe” began to acquire its current associations with corruption.
  • 27. Many types of bribes exist:  Tip  Gift  Discount  Free food  Free trip  Free ticket  Funding  Sale of property  promotion (rise of position/rank).
  • 28. Taking Bribe = Stealing or Begging But Recipient consider as a gift
  • 29.
  • 30. • As per The World Bank estimates – bribes paid globally aggregates to over USD 1 trillion per annum • Key reasons in India - Obtaining routine administrative approvals - Attempts to win / retain business
  • 31. Regulation and or Regulatory Bodies  Primary statute to prevent corruption  Only applicable to public officials  Premiere national investigating police agency (Like FBI)  Anti Corruption Wing of CBI gather intelligence and investigate corruption cases referred by CVC  Apex body for exercising superintendence and control over vigilance administration  Also acts on complaints from whistleblowers  Each state has its own ACB and vigilance cell to investigate state corruption Prevention of Corruption Act, 1988 (“PCA”) Central Bureau of Investigation (“CBI”) Central Vigilance Commission (“CVC”) set up under CVC Act, 2003 State Anti Corruption Bureau (“ACB”) / Vigilance Commissions
  • 32. As there is increase in corruption the honour decreases.
  • 33. India ranks among the world’s top 5 countries in-  Cricket  Film Industry- Bolly, Tolly, Kolly woods  Information Technology  No. of Millionaires
  • 34. o Transparency International’s Corruption Perception Index - 85th o TI’s Bribe payer’s Index Among 30 Leading Exporting Countries- 30th
  • 35.  CPI is the Corruption Perception Index  A ranking of countries according to the extent to which corruption is believed to exist.  The corruption perception index was created in 1995 by Transparency International.  It ranks almost 200 countries on a scale of zero to 10, with zero indicating high levels of corruption and 10 indicating low levels.  Developed countries typically higher rank.
  • 36.
  • 37.  Bribery often makes a country less atractive for foreign investors and may thus keep down the standard of living in the country  American companies are forbidden to pay bribes even abroad. They complain that they are therefore at a disadvantage to non US companies in some markets
  • 38.  Prevents markets from working effeciently  It prevents open access to all competitors on equal terms  Competitors are prevented from competing on the merits of their products or services  Often leads to higher prices
  • 39.  Every citizen has to pay an ‘EXTRA’ fee over the Govt fee for every – service, certificate or process in Govt departments  Pricelist varies across departments and different classes of people  NO BRIBE, NO SERVICE
  • 40. • Campaign launched in Aug 2007 • Covered all districts of TN, few in AP, Karnataka • 600 plus colleges & schools and counting…. • 500, 000 students pledged- ‘I will not take or give bribe’
  • 41. DUTIES TOWARDS CITIZEN: “Enable, Encourage and Empower Every Citizen to Eliminate Corruption at all levels of Society”