This document discusses the topic of corruption. It begins by defining corruption and explaining its meaning. Some key causes of corruption that were identified in a 2017 survey include higher levels of market and political monopolization, low levels of democracy and transparency, inefficient bureaucracies, low press freedom and economic freedom. Corruption can occur on different scales, from petty corruption between a small number of people to grand corruption that affects government on a large scale. Corruption has negative economic impacts such as increasing costs and lowering growth. The document then discusses various types and sectors of corruption, as well as anti-corruption programs and the issues of corruption in India including black money.

1. CORRUPTION

2. DEFINITION OF CORRUPTION
•THE PROCESS BY WHICH A WORD
OR EXPRESSION IS CHANGED
FROM ITS ORIGINAL STATE TO
ONE REGARDED AS ERRONEOUS
OR DEBASED.

4. MEANING OF
CORRUPTION
• CORRUPTION IS DISHONEST ACTION THAT
DESTROYS PEOPLE'S TRUST. NEWS
OF CORRUPTION AT YOUR BANK MIGHT MAKE
YOU CLOSE YOUR ACCOUNT AND INVEST YOUR
MONEY SOMEWHERE ELSE. THE
NOUN CORRUPTION COMES FROM LATIN —
COM, MEANING "WITH, TOGETHER," AND
RUMPERE, MEANING "TO BREAK.

6. CAUSES OF CORRUPTION
• ACCORDING TO A 2017 SURVEY STUDY, THE FOLLOWING FACTORS HAVE BEEN ATTRIBUTED AS CAUSES OF CORRUPTION:
• HIGHER LEVELS OF MARKET AND POLITICAL MONOPOLIZATION
• LOW LEVELS OF DEMOCRACY, WEAK CIVIL PARTICIPATION AND LOW POLITICAL TRANSPARENCY
• HIGHER LEVELS OF BUREAUCRACY AND INEFFICIENT ADMINISTRATIVE STRUCTURES
• LOW PRESS FREEDOM
• LOW ECONOMIC FREEDOM
• LARGE ETHNIC DIVISIONS AND HIGH LEVELS OF IN-GROUP FAVORITISM
• GENDER INEQUALITY
• LOW DEGREE OF INTEGRATION IN THE WORLD ECONOMY
• LARGE GOVERNMENT SIZE
• LOW LEVELS OF GOVERNMENT DECENTRALIZATION
• FORMER FRENCH, PORTUGUESE, OR SPANISH COLONIES HAVE BEEN SHOWN TO HAVE GREATER CORRUPTION THAN FORMER BRITISH COLONIES
• RESOURCE WEALTH
• POVERTY
• POLITICAL INSTABILITY
• WEAK PROPERTY RIGHTS
• CONTAGION FROM CORRUPT NEIGHBORING COUNTRIES
• LOW LEVELS OF EDUCATION
• LOW INTERNET ACCESS

7. SCALES OF
CORRUPTION
• STEPHEN D. MORRIS, A PROFESSOR OF POLITICS, WRITES
THAT POLITICAL CORRUPTION IS THE ILLEGITIMATE USE OF PUBLIC POWER TO
BENEFIT A PRIVATE INTEREST. ECONOMIST IAN SENIOR DEFINES CORRUPTION AS AN
ACTION TO (A) SECRETLY PROVIDE (B) A GOOD OR A SERVICE TO A THIRD PARTY (C)
SO THAT HE OR SHE CAN INFLUENCE CERTAIN ACTIONS WHICH (D) BENEFIT THE
CORRUPT, A THIRD PARTY, OR BOTH (E) IN WHICH THE CORRUPT AGENT HAS
AUTHORITY. DANIEL KAUFMANN,[] FROM THE WORLD BANK, EXTENDS THE CONCEPT
TO INCLUDE 'LEGAL CORRUPTION' IN WHICH POWER IS ABUSED WITHIN THE
CONFINES OF THE LAW—AS THOSE WITH POWER OFTEN HAVE THE ABILITY TO MAKE
LAWS FOR THEIR PROTECTION. THE EFFECT OF CORRUPTION IN INFRASTRUCTURE IS
TO INCREASE COSTS AND CONSTRUCTION TIME, LOWER THE QUALITY AND
DECREASE THE BENEFIT.
• CORRUPTION CAN OCCUR ON DIFFERENT SCALES. CORRUPTION RANGES FROM
SMALL FAVORS BETWEEN A SMALL NUMBER OF PEOPLE (PETTY CORRUPTION),TO
CORRUPTION THAT AFFECTS THE GOVERNMENT ON A LARGE SCALE (GRAND
CORRUPTION), AND CORRUPTION THAT IS SO PREVALENT THAT IT IS PART OF THE

9. TYPES OF CORRUPT GAINS
•ABUSE OF DISCRETION
• ABUSE OF DISCRETION REFERS TO THE MISUSE OF ONE'S POWERS AND DECISION-
MAKING FACILITIES. EXAMPLES INCLUDE A JUDGE IMPROPERLY DISMISSING A CRIMINAL
CASE OR A CUSTOMS OFFICIAL USING THEIR DISCRETION TO ALLOW A BANNED SUBSTANCE
THROUGH A PORT.
•FAVORITISM, NEPOTISM AND
CLIENTELISM
• FAVORITISM, NEPOTISM AND CLIENTELES INVOLVE THE FAVORING OF NOT THE
PERPETRATOR OF CORRUPTION BUT SOMEONE RELATED TO THEM, SUCH AS A FRIEND,
FAMILY MEMBER OR MEMBER OF AN ASSOCIATION. EXAMPLES WOULD INCLUDE HIRING OR

11. CORRUPTION IN DIFFERENT SECTORS
• GOVERNMENT/PUBLIC SECTOR
• PUBLIC SECTOR CORRUPTION INCLUDES CORRUPTION OF THE POLITICAL PROCESS AND OF GOVERNMENT AGENCIES SUCH
AS THE POLICE AS WELL AS CORRUPTION IN PROCESSES OF ALLOCATING PUBLIC FUNDS FOR CONTRACTS, GRANTS, AND
HIRING. RECENT RESEARCH BY THE WORLD BANK SUGGESTS THAT WHO MAKES POLICY DECISIONS (ELECTED OFFICIALS OR
BUREAUCRATS) CAN BE CRITICAL IN DETERMINING THE LEVEL OF CORRUPTION BECAUSE OF THE INCENTIVES DIFFERENT
POLICY-MAKERS FACE.
• POLITICAL CORRUPTION
• POLITICAL CORRUPTION IS THE ABUSE OF PUBLIC POWER, OFFICE, OR RESOURCES BY ELECTED GOVERNMENT OFFICIALS
FOR PERSONAL GAIN, BY EXTORTION, SOLICITING OR OFFERING BRIBES. IT CAN ALSO TAKE THE FORM OF OFFICE HOLDERS
MAINTAINING THEMSELVES IN OFFICE BY PURCHASING VOTES BY ENACTING LAWS WHICH USE TAXPAYERS'
MONEY. EVIDENCE SUGGESTS THAT CORRUPTION CAN HAVE POLITICAL CONSEQUENCES- WITH CITIZENS BEING ASKED FOR
BRIBES BECOMING LESS LIKELY TO IDENTIFY WITH THEIR UNTRY OR REGION.
• CORRUPTION IN THE EDUCATIONAL SYSTEM
• CORRUPTION IN EDUCATION IS A WORLDWIDE PHENOMENON. CORRUPTION IN ADMISSIONS TO
UNIVERSITIES IS TRADITIONALLY CONSIDERED AS ONE OF THE MOST CORRUPT AREAS OF THE
EDUCATION SECTOR.]RECENT ATTEMPTS IN SOME COUNTRIES, SUCH AS RUSSIA AND UKRAINE, TO
CURB CORRUPTION IN ADMISSIONS THROUGH THE ABOLITION OF UNIVERSITY ENTRANCE
EXAMINATIONS AND INTRODUCTION OF STANDARDIZED COMPUTER GRADED TESTS HAVE LARGELY
FAILED. VOUCHERS FOR UNIVERSITY ENTRANTS HAVE NEVER MATERIALIZED. THE COST OF
CORRUPTION IS IN THAT IT IMPEDES SUSTAINABLE ECONOMIC GROWTH. ENDEMIC CORRUPTION IN
EDUCATIONAL INSTITUTIONS LEADS TO THE FORMATION OF SUSTAINABLE CORRUPT

13. CORRUPTION AND ECONOMIC
GROWTH
• CORRUPTION IS STRONGLY NEGATIVELY ASSOCIATED WITH THE SHARE OF PRIVATE
INVESTMENT AND, HENCE, IT LOWERS THE RATE OF ECONOMIC GROWTH.
• CORRUPTION REDUCES THE RETURNS OF PRODUCTIVE ACTIVITIES. IF THE RETURNS TO
PRODUCTION FALL FASTER THAN THE RETURNS TO CORRUPTION AND RENT-SEEKING
ACTIVITIES, RESOURCES WILL FLOW FROM PRODUCTIVE ACTIVITIES TO CORRUPTION
ACTIVITIES OVER TIME. THIS WILL RESULT IN A LOWER STOCK OF PRODUCIBLE INPUTS
LIKE HUMAN CAPITAL IN CORRUPTED COUNTRIES.
• CORRUPTION CREATES THE OPPORTUNITY FOR INCREASED INEQUALITY, REDUCES THE
RETURN OF PRODUCTIVE ACTIVITIES, AND, HENCE, MAKES RENTSEEKING AND
CORRUPTION ACTIVITIES MORE ATTRACTIVE. THIS OPPORTUNITY FOR INCREASED
INEQUALITY NOT ONLY GENERATES PSYCHOLOGICAL FRUSTRATION TO THE
UNDERPRIVILEGED BUT ALSO REDUCES PRODUCTIVITY GROWTH, INVESTMENT, AND JOB
OPPORTUNITIES.

14. CORRUPTION IN INDIA

17. DEGREE OF CORRUPTION = MONOPOLY +
DISCRETION – TRANSPARENCY – MORALITY
• ACCORDING TO STEPHAN, THE MORAL DIMENSION HAS AN INTRINSIC AND AN EXTRINSIC
COMPONENT. THE INTRINSIC COMPONENT REFERS TO A MENTALITY PROBLEM, THE EXTRINSIC
COMPONENT TO EXTERNAL CIRCUMSTANCES LIKE POVERTY, INADEQUATE REMUNERATION,
INAPPROPRIATE WORK CONDITIONS AND INOPERABLE OR OVERCOMPLICATED PROCEDURES WHICH
DEMORALIZE PEOPLE AND LET THEM SEARCH FOR "ALTERNATIVE" SOLUTIONS.
• ACCORDING TO THE AMENDED KLITGAARD EQUATION, LIMITATION OF MONOPOLY AND REGULATOR
DISCRETION OF INDIVIDUALS AND A HIGH DEGREE OF TRANSPARENCY THROUGH INDEPENDENT
OVERSIGHT BY NON-GOVERNMENTAL ORGANISATIONS (NGOS) AND THE MEDIA PLUS PUBLIC ACCESS
TO RELIABLE INFORMATION COULD REDUCE THE PROBLEM. DJANKOV AND OTHER RESEARCHERS
HAVE INDEPENDENTLY ADDRESSED THE IMPORTANT ROLE INFORMATION PLAYS IN FIGHTING
CORRUPTION WITH EVIDENCE FROM BOTH DEVELOPING AND DEVELOPED COUNTRIES. DISCLOSING
FINANCIAL INFORMATION OF GOVERNMENT OFFICIALS TO THE PUBLIC IS ASSOCIATED WITH IMPROVING
INSTITUTIONAL ACCOUNTABILITY AND ELIMINATING MISBEHAVIOR SUCH AS VOTE BUYING. THE EFFECT
IS SPECIFICALLY REMARKABLE WHEN THE DISCLOSURES CONCERN POLITICIANS’ INCOME SOURCES,
LIABILITIES AND ASSET LEVEL INSTEAD OF JUST INCOME LEVEL. ANY EXTRINSIC ASPECTS THAT MIGHT
REDUCE MORALITY SHOULD BE ELIMINATED. ADDITIONALLY, A COUNTRY SHOULD ESTABLISH A

18. ANTI-CORRUPTION PROGRAMMES
• THE FOREIGN CORRUPT PRACTICES ACT (FCPA, USA 1977) WAS AN EARLY PARADIGMATIC LAW
FOR MANY WESTERN COUNTRIES I.E. INDUSTRIAL COUNTRIES OF THE OECD. THERE, FOR THE
FIRST TIME THE OLD PRINCIPAL-AGENT APPROACH WAS MOVED BACK WHERE MAINLY THE
VICTIM (A SOCIETY, PRIVATE OR PUBLIC) AND A PASSIVE CORRUPT MEMBER (AN INDIVIDUAL)
WERE CONSIDERED, WHEREAS THE ACTIVE CORRUPT PART WAS NOT IN THE FOCUS OF LEGAL
PROSECUTION. UNPRECEDENTED, THE LAW OF AN INDUSTRIAL COUNTRY DIRECTLY CONDEMNED
ACTIVE CORRUPTION, PARTICULARLY IN INTERNATIONAL BUSINESS TRANSACTIONS, WHICH WAS
AT THAT TIME IN CONTRADICTION TO ANTI-BRIBERY ACTIVITIES OF THE WORLD BANK AND ITS
SPIN-OFF ORGANIZATION TRANSPARENCY INTERNATIONAL.
• AS EARLY AS 1989 THE OECD HAD ESTABLISHED AN AD HOC WORKING GROUP IN ORDER TO
EXPLORE "...THE CONCEPTS FUNDAMENTAL TO THE OFFENSE OF CORRUPTION, AND THE
EXERCISE OF NATIONAL JURISDICTION OVER OFFENSES COMMITTED WHOLLY OR PARTIALLY
ABROAD. BASED ON THE FCPA CONCEPT, THE WORKING GROUP PRESENTED IN 1994 THE THEN
"OECD ANTI-BRIBERY RECOMMENDATION" AS PRECURSOR FOR THE OECD CONVENTION ON
COMBATING BRIBERY OF FOREIGN PUBLIC OFFICIALS IN INTERNATIONAL BUSINESS
TRANSACTIONS[64] WHICH WAS SIGNED IN 1997 BY ALL MEMBER COUNTRIES AND CAME FINALLY
INTO FORCE IN 1999. HOWEVER, BECAUSE OF ONGOING CONCEALED CORRUPTION IN
INTERNATIONAL TRANSACTIONS SEVERAL INSTRUMENTS OF COUNTRY MONITORINGHAVE BEEN

20. CORRUPTION TOURISM
• IN SOME COUNTRIES PEOPLE TRAVEL TO CORRUPTION HOT SPOTS OR A
SPECIALIST TOUR COMPANY TAKES THEM ON CORRUPTION CITY TOURS, AS
IT IS THE CASE IN PRAGUE. CORRUPTION TOURS HAVE ALSO OCCURRED
IN CHICAGO, AND MEXICO CITY
• LEGAL CORRUPTION
• THOUGH CORRUPTION IS OFTEN VIEWED AS ILLEGAL, THERE IS AN
EVOLVING CONCEPT OF LEGAL CORRUPTION, AS DEVELOPED
BY DANIEL KAUFMANN AND PEDRO VICENTE. IT MIGHT BE
TERMED AS PROCESSES WHICH ARE CORRUPT, BUT ARE
PROTECTED BY A LEGAL (THAT IS, SPECIFICALLY PERMITTED, OR
AT LEAST NOT PROSCRIBED BY LAW) FRAMEWORK.

21. CORRUPTION IN INDIA
• CORRUPTION IN INDIA IS AN ISSUE THAT ADVERSELY AFFECTS THE COUNTRY'S ECONOMY AND THE CREDIBILITY
OF CENTRAL, STATE AND LOCAL GOVERNMENT AGENCIES. NOT ONLY HAS IT HELD THE ECONOMY BACK FROM
REACHING NEW HEIGHTS, BUT RAMPANT CORRUPTION HAS STUNTED INDIA'S DEVELOPMENT.]A STUDY
CONDUCTED BY TRANSPARENCY INTERNATIONAL IN 2005 RECORDED THAT MORE THAN 92% OF INDIANS HAD AT
SOME POINT OR ANOTHER PAID A BRIBE TO GET A JOB DONE IN A PUBLIC OFFICE. IN A STUDY CONDUCTED IN
2008, TRANSPARENCY INTERNATIONAL REPORTED THAT ABOUT 50% OF INDIANS HAD FIRST HAND EXPERIENCE OF
PAYING BRIBES OR USING CONTACTS TO GET SERVICES PERFORMED BY PUBLIC OFFICES.
• ACCORDING TO 2016 RESULTS OF THE CORRUPTION PERCEPTIONS INDEX OF TRANSPARENCY INTERNATIONAL,
INDIA RANKS IN 79TH PLACE OUT OF 176 COUNTRIES.
• THE LARGEST CONTRIBUTORS TO CORRUPTION ARE ENTITLEMENT PROGRAMS AND SOCIAL SPENDING SCHEMES
ENACTED BY THE INDIAN GOVERNMENT. EXAMPLES INCLUDE THE MAHATMA GANDHI NATIONAL RURAL
EMPLOYMENT GUARANTEE ACT AND THE NATIONAL RURAL HEALTH MISSION. OTHER AREAS OF CORRUPTION
INCLUDE INDIA'S TRUCKING INDUSTRY WHICH IS FORCED TO PAY BILLIONS OF RUPEES IN BRIBES ANNUALLY TO
NUMEROUS REGULATORY AND POLICE STOPS ON INTERSTATE HIGHWAYS.
• THE MEDIA HAS WIDELY PUBLISHED ALLEGATIONS OF CORRUPT INDIAN CITIZENS STASHING MILLIONS OF RUPEES
IN SWISS BANKS. SWISS AUTHORITIES DENIED THESE ALLEGATIONS, WHICH WERE LATER PROVEN IN 2015-2016.
THE INDIAN MEDIA IS LARGELY CONTROLLED BY EXTREMELY CORRUPT POLITICIANS AND INDUSTRIALISTS WHO
PLAY A MAJOR ROLE BY MISLEADING THE PUBLIC WITH INCORRECT INFORMATION AND USE THE MEDIA FOR MUD-
SLINGING AT POLITICAL AND BUSINESS OPPONENTS.
• THE CAUSES OF CORRUPTION IN INDIA INCLUDE; EXCESSIVE REGULATIONS, COMPLICATED TAX AND LICENSING
SYSTEMS, NUMEROUS GOVERNMENT DEPARTMENTS WITH OPAQUE BUREAUCRACY AND DISCRETIONARY POWERS,
MONOPOLY OF GOVERNMENT CONTROLLED INSTITUTIONS ON CERTAIN GOODS AND SERVICES DELIVERY, AND
THE LACK OF TRANSPARENT LAWS AND PROCESSES.] THERE ARE SIGNIFICANT VARIATIONS IN THE LEVEL OF

23. BLACK MONEY
• INDIAN BLACK MONEY
• BLACK MONEY REFERS TO MONEY THAT IS NOT FULLY OR LEGITIMATELY THE PROPERTY OF
THE 'OWNER'. A GOVERNMENT WHITE PAPER ON BLACK MONEY IN INDIA SUGGESTS TWO
POSSIBLE SOURCES OF BLACK MONEY IN INDIA.; THE FIRST INCLUDES ACTIVITIES NOT
PERMITTED BY THE LAW, SUCH AS CRIME, DRUG TRADE, TERRORISM, AND CORRUPTION,
ALL OF WHICH ARE ILLEGAL IN INDIA AND SECONDLY, WEALTH THAT MAY HAVE BEEN
GENERATED THROUGH LAWFUL ACTIVITY BUT ACCUMULATED BY FAILURE TO DECLARE
INCOME AND PAY TAXES. SOME OF THIS BLACK MONEY ENDS UP IN ILLICIT FINANCIAL
FLOWS ACROSS INTERNATIONAL BORDERS, SUCH AS DEPOSITS IN TAX HAVEN COUNTRIES.
• A NOVEMBER 2010 REPORT FROM THE WASHINGTON-BASED GLOBAL FINANCIAL INTEGRITY
ESTIMATES THAT OVER A 60-YEAR PERIOD, INDIA LOST US$213 BILLION IN ILLICIT
FINANCIAL FLOWS BEGINNING IN 1948; ADJUSTED FOR INFLATION, THIS IS ESTIMATED TO
BE $462 BILLION IN 2010, OR ABOUT $8 BILLION PER YEAR ($7 PER CAPITA PER YEAR). THE
REPORT ALSO ESTIMATED THE SIZE OF INDIA'S UNDERGROUND ECONOMY AT
APPROXIMATELY US$640 BILLION AT THE END OF 2008 OR ROUGHLY 50% OF THE NATION'S

25. INDIAN BLACK MONEY IN SWITZERLAND
• INDIA WAS RANKED 38TH BY MONEY HELD BY ITS CITIZENS IN SWISS BANKS IN 2004 BUT THEN IMPROVED ITS RANKING BY
SLIPPING TO 61ST POSITION IN 2015 AND FURTHER IMPROVED ITS POSITION BY SLIPPING TO 75TH POSITION IN 2016 ACCORDING
TO A 2010 THE HINDU ARTICLE, UNOFFICIAL ESTIMATES INDICATE THAT INDIANS HAD OVER US$1,456 BILLION IN BLACK MONEY
STORED IN SWISS BANKS (APPROXIMATELY US$1.4 TRILLION).] WHILE SOME NEWS REPORTS CLAIMED THAT DATA PROVIDED BY THE
SWISS BANKING ASSOCIATION[] REPORT (2006) SHOWED INDIA HAS MORE BLACK MONEY THAN THE REST OF THE WORLD
COMBINED,[49][50] A MORE RECENT REPORT QUOTED THE SBA'S HEAD OF INTERNATIONAL COMMUNICATIONS AS SAYING THAT NO
SUCH OFFICIAL SWISS BANKING ASSOCIATION STATISTICS EXIST. ANOTHER REPORT SAID THAT INDIAN-OWNED SWISS BANK
ACCOUNT ASSETS ARE WORTH 13 TIMES THE COUNTRY'S NATIONAL DEBT. THESE ALLEGATIONS HAVE BEEN DENIED BY SWISS
BANKERS ASSOCIATION. JAMES NANSON OF SWISS BANKERS ASSOCIATION IN AN INTERVIEW ABOUT ALLEGED BLACK MONEY FROM
INDIA, HOLDS THAT "THE (BLACK MONEY) FIGURES WERE RAPIDLY PICKED UP IN THE INDIAN MEDIA AND IN INDIAN OPPOSITION
CIRCLES, AND CIRCULATED AS GOSPEL TRUTH. HOWEVER, THIS STORY WAS A COMPLETE FABRICATION. THE SWISS BANKERS
ASSOCIATION NEVER PUBLISHED SUCH A REPORT. ANYONE CLAIMING TO HAVE SUCH FIGURES (FOR INDIA) SHOULD BE FORCED TO
IDENTIFY THEIR SOURCE AND EXPLAIN THE METHODOLOGY USED TO PRODUCE THEM."[11][52]
• IN A SEPARATE STUDY, DEV KAR OF GLOBAL FINANCIAL INTEGRITY CONCLUDES, "MEDIA REPORTS CIRCULATING IN INDIA THAT
INDIAN NATIONALS HELD AROUND US$1.4 TRILLION IN ILLICIT EXTERNAL ASSETS ARE WIDELY OFF THE MARK COMPARED TO THE
ESTIMATES FOUND BY HIS STUDY." KAR CLAIMS THE AMOUNTS ARE SIGNIFICANTLY SMALLER, ONLY ABOUT 1.5% OF INDIA'S GDP
ON AVERAGE PER ANNUM BASIS, BETWEEN 1948 AND 2008. THIS INCLUDES CORRUPTION, BRIBERY AND KICKBACKS, CRIMINAL
ACTIVITIES, TRADE MISPRICING AND EFFORTS TO SHELTER WEALTH BY INDIANS FROM INDIA'S TAX AUTHORITIES.[ACCORDING TO A
THIRD REPORT, PUBLISHED IN MAY 2012, SWISS NATIONAL BANK ESTIMATES THAT THE TOTAL AMOUNT OF DEPOSITS IN ALL SWISS
BANKS, AT THE END OF 2010, BY CITIZENS OF INDIA WERE CHF 1.95 BILLION (₹92.95 BILLION (US$1.4 BILLION)). THE SWISS
MINISTRY OF EXTERNAL AFFAIRS HAS CONFIRMED THESE FIGURES UPON REQUEST FOR INFORMATION BY THE INDIAN MINISTRY OF
EXTERNAL AFFAIRS. THIS AMOUNT IS ABOUT 700 FOLD LESS THAN THE ALLEGED $1.4 TRILLION IN SOME MEDIA REPORTS.] THE
REPORT ALSO PROVIDED A COMPARISON OF THE DEPOSITS HELD BY INDIANS AND BY CITIZENS OF OTHER NATIONS IN SWISS
BANKS. TOTAL DEPOSITS HELD BY CITIZENS OF INDIA CONSTITUTE ONLY 0.13 PER CENT OF THE TOTAL BANK DEPOSITS OF
CITIZENS OF ALL COUNTRIES. FURTHER, THE SHARE OF INDIANS IN THE TOTAL BANK DEPOSITS OF CITIZENS OF ALL COUNTRIES IN
SWISS BANKS HAS REDUCED FROM 0.29 PER CENT IN 2006 TO 0.13 PER CENT IN 2010.

26. EXAMPLES OF CORRUPTION IN GOVERNMENT
• AN EXAMPLE OF CORRUPTION IN THE USA RIGHT NOW IS THE PASSAGE OF LAWS THAT
DIRECTLY BENEFIT CERTAIN CORPORATIONS, BASED ON THE ASSISTANCE, CAMPAIGNING
MONEY AND ADVERTISING BY THOSE GROUPS. EXAMPLES OF LARGE DONORS INCLUDE THE
KOCH BROTHERS (SHUTTING DOWN CLIMATE CHANGE ACTION), LARGE PHARMACEUTICAL
COMPANIES (SHUTTING DOWN ATTEMPTS TO ALLOW BULK BUYING BY THE GOVERNMENT
TO REDUCE THE COST OF MEDICAID), THE NRA (PREVENTING GUN COMPANIES FROM BEING
LIABLE, AND PREVENTING RESEARCH INTO GUN VIOLENCE). ALTHOUGH THE INDIVIDUAL
ELECTED OFFICIALS MAY NOT HAVE RECEIVED MONETARY BENEFITS, IT IS OFTEN DOUBTFUL
THAT THEY WOULD HAVE ANY CHANCE OF BEING ELECTED IN THE FIRST PLACE WITHOUT
THE HUGE SUMS OF MONEY DONATED TO AGENCIES THAT WOULD RUN ADVERTISING AND
OTHER CAMPAIGN ASSISTANCE FOR CANDIDATES WILLING TO TOE THE CORPORATE LINE.
UNFORTUNATELY THIS PRACTICE IS LEGAL IN THE USA, AND HAS BECOME EVER MORE
SERIOUS SINCE THE PASSAGE OF CITIZENS UNITED, ESSENTIALLY REMOVING LIMITS ON HOW
MUCH CORPORATIONS CAN SPEND ON POLITICAL CAMPAIGNING.

27. Index trends in major states by respective anti-corruption effort[13]
State 1990–95 1996-00 2001–05 2006–10
Bihar 0.41 0.30 0.43 0.88
Gujarat 0.48 0.57 0.64 0.69
Andhra Pradesh 0.53 0.73 0.55 0.61
Punjab 0.32 0.46 0.46 0.60
Jammu & Kashmir 0.13 0.32 0.17 0.40
Haryana 0.33
0.60
0.31 0.37
Himachal Pradesh 0.26 0.14 0.23 0.35
Tamil Nadu 0.19 0.20 0.24 0.29
Madhya Pradesh 0.23 0.22 0.31 0.29
Karnataka 0.24 0.19 0.20 0.29
Rajasthan 0.27 0.23 0.26 0.27
Kerala 0.16 0.20 0.22 0.27
Maharashtra 0.45 0.29 0.27 0.26
Uttar Pradesh 0.11 0.11 0.16 0.21
Odisha 0.22 0.16 0.15 0.19
Assam 0.21 0.02 0.14 0.17
West Bengal 0.11 0.08 0.03 0.01

29. ANTI-CORRUPTION EFFORTS
• RIGHT TO INFORMATION ACT
• THE 2005 RIGHT TO INFORMATION
ACT REQUIRED GOVERNMENT OFFICIALS TO
PROVIDE INFORMATION REQUESTED BY CITIZENS
OR FACE PUNITIVE ACTION, AS WELL AS THE
COMPUTERIZATION OF SERVICES AND THE
ESTABLISHMENT OF VIGILANCE COMMISSIONS.
THIS CONSIDERABLY REDUCED CORRUPTION AND
OPENED UP AVENUES TO REDRESS GRIEVANCES.

31. RIGHT TO PUBLIC SERVICES LEGISLATION
Right to Public Services legislation, which has
been enacted in 19 states of India, guarantee
time bound delivery of services for
various public services rendered by the
government to citizen and provides mechanisms
for punishing the errant public servant who is
deficient in providing the service stipulated
under the statute. Right to Service legislation is
meant to reduce corruption among the
government officials and to increase
transparency and public accountability.

33. Anti-corruption laws in India

34. ANTI-CORRUPTION LAWS IN INDIA
• PUBLIC SERVANTS IN INDIA CAN BE IMPRISONED FOR SEVERAL YEARS AND PENALISED FOR
CORRUPTION UNDER THE:
• INDIAN PENAL CODE, 1860
• PROSECUTION SECTION OF INCOME TAX ACT, 1961
• THE PREVENTION OF CORRUPTION ACT, 1988
• THE BENAMI TRANSACTIONS (PROHIBITION) ACT, 1988 TO PROHIBIT BENAMI
TRANSACTIONS.
• PREVENTION OF MONEY LAUNDERING ACT, 2002
• PUNISHMENT FOR BRIBERY IN INDIA CAN RANGE FROM SIX MONTHS TO SEVEN YEARS.
• INDIA IS ALSO A SIGNATORY TO THE UNITED NATIONS CONVENTION AGAINST
CORRUPTION SINCE 2005 (RATIFIED 2011). THE CONVENTION COVERS A WIDE RANGE OF
ACTS OF CORRUPTION AND ALSO PROPOSES CERTAIN PREVENTIVE POLICIES.
• THE LOKPAL AND LOKAYUKTAS ACT, 2013 WHICH CAME INTO FORCE FROM 16 JANUARY
2014, SEEKS TO PROVIDE FOR THE ESTABLISHMENT OF THE INSTITUTION OF LOKPAL TO
INQUIRE INTO ALLEGATIONS OF CORRUPTION AGAINST CERTAIN PUBLIC FUNCTIONARIES IN

37. HOW TO STOP
CORRUPTION: 5 KEY
INGREDIENTS

38. 1. END IMPUNITY
2.2. REFORM PUBLIC
ADMINISTRATION AND FINANCE
MANAGEMENT
3.3. PROMOTE TRANSPARENCY AND
ACCESS TO INFORMATION
4.4. EMPOWER CITIZENS
5.5. CLOSE INTERNATIONAL
LOOPHOLES