Challenges of Corruption
Definition of Corruption
“Power tends to corrupt, and absolute power corrupts absolutely.”- Lord Acton.
The word ‘corrupt’ is derived from the Latin ‘corruptus’, meaning ‘to break or destroy’. Corruption in government refers to the abuse of public resources and/or public authority for private or political gains. Corruption is an important manifestation of not only failure of ethics but also failure of governance.
Corruption thrives and becomes difficult to eradicate if several stakeholders, i.e. Bureaucracy, Citizens, Politicians, and Businesses, indulge in it. As shown in the diagram below, the corruption of one stakeholder reinforces the corruption of other stakeholders. For instance, CAG exposed the Adarsh Society Scam (Mumbai) in 2011. It was built for war widows and personnel of the Ministry of Defence. This scam could become possible because of the involvement of Politicians, Bureaucrats and Military officers to bend several rules related to land ownership, zoning, floor space index and membership. 
Types of Corruption
Corruption has different types depending on the level of coercion involved, the quantum of graft involved, the level of prevalence in society and such factors.
Supply vs. Demand side Corruption
Supply-side corruption refers to the act of offering an illicit payment or undue advantage. For example, the public offers bribes to public officers to get their work done. Demand-side corruption refers to the acceptance/demand of such a payment or advantage by the public officers themselves. Active and passive corruption terms are used synonymously with supply and demand corruption.
Collaborative and Coercive Corruption
Collaborative corruption is when government officials receive an undue advantage in return for a favour to any party, and there is reciprocity (give and take) in the transaction. For example, money received in return for a government tender given to a contractor bypassing the fair tendering process.
Coercive corruption exists when the bribe giver becomes the victim of extortion. He is compelled to give bribes for basic services that he is entitled to. For instance, government officials take money from beneficiaries to release pension amounts under the National Social Assistance Programme.
Petty vs. Grand Corruption
Petty/Retail corruption is sometimes called bureaucratic corruption and involves small sums of money but at a higher frequency. Some examples include bribes paid to enforcement officials, customs officers, health service providers, and other government officials. These are also known as facilitation payments or “grease” payments.
Grand corruption involves higher bureaucrats and elected representatives, who exploit opportunities in large-scale government projects, such as infrastructure projects. It is considered a type of grand corruption due to the involvement of large amounts of money or resources such as public land, forests or mining leases. Jharkhand cadre senior IAS officer Pooja Singhal was suspended for misappropriation of funds in MGNREGA, corruption in grant of mining lease in forest area, etc.
Another type of grand corruption is State capture, which is defined as a company or private organization that shapes government laws or policies through payments for its own benefit at the cost of public interest.
Systemic vs. Isolated Corruption
Systemic corruption refers to corruption that is pervasive in a society. It exists as a matter of routine in dealings between government and private individuals/entities. In such cases, gaps exist between formal and informal rules, and all stakeholders have strong incentives to comply with this illegitimate system of norms. For example, in most underdeveloped/least developed countries, such as in sub-Saharan Africa, the problem of corruption is systemic. Countries like Somalia, Venezuela, Syria, South Sudan and Yemen occupy the bottom ranks in the Corruption Perception Index of 2023.
In contrast, isolated corruption refers to when corruption is rare or consists of a few individual acts. For instance, Denmark topped the CPI index for the sixth consecutive year, with Finland and New Zealand following closely.
Corruption by Acts of Omission or Commission
Acts of corruption can be carried out by commission or by omission. A public official can either act against his official duties or refrain from performing them in exchange for a personal benefit.
Forms of Corruption
Corruption can take several different forms. Following are some of the forms of Corruption found in Civil Services:
- Bribery
- Extortion
- Embezzlement
- Fraud
- Abuse of Power
- Conflict of Interest
- Partiality
- Insider Trading/Abuse of Privileged Information
- Favouritism
- Nepotism
- Obstruction of Justice
- Influence Peddling
Causes of Corruption
Corruption mainly exists when there is a monopoly to exercise power/discretion, along with a lack of transparency and accountability. The concentration of decision-making power without any accountability provides a fertile breeding ground for corruption. The following are the major causes of corruption in India.
Social Inequality
High prevalence of poverty and Economic disparities leads to enormous asymmetries in power. India’s 90% of the workforce is engaged in the unorganised sector, which has very low levels of wages and no job security. This contributes to corruption, as few wealthy individuals concentrate power in their hands. They may use their influence to secure preferential treatment and engage in corrupt practices without repercussions. At the same time, a large number of masses live in poverty and lack of access to basic needs.
Cultural Factors
There can be a cultural acceptance of corrupt behaviour emerging from its Normalisation in certain contexts due to entrenched informal norms of behaviour in society. The notion that “everyone does it” can lead individuals to engage in corruption without even feeling guilty.
Political Factors
The prevalence of corrupt practices in electoral processes can be seen in the form of bribing voters, the use of black money in campaigning, and the use of fear/favour to lure voters. This helps corrupt candidates take unfair advantage vis-à-vis honest candidates. Corruption in electoral processes leads to the pervasiveness of corruption in society, government and bureaucracy.
In addition, corruption in the form of Political interference may compromise the autonomy of government institutions. For example, the political executive has the power to decide appointments, transfers and promotions of important public officials such as the Election Commissioner, Chairman and members of UPSC, etc.
Apart from that, there can also be direct or indirect interference in administrative matters or pressure on officials to engage in corrupt activities for personal or party gain.
Lack of Transparency
A lack of transparency and openness in government processes reduces the effectiveness of oversight by citizens and provides fertile ground for corrupt practices. Actions and decisions are shielded from public scrutiny, and officials engage in corrupt activities without fear of exposure. For example, in November 2023, Kerala emerged as the only state in the country that has completed the social audit of work done under MGNREGS in all village panchayats.
Low Salaries and Incentives
Public servants, mainly those placed lower in the hierarchy, sometimes get low salaries and less perks. This may lure them to bribery to supplement their income. For example, retail corruption is high among clerks, peons, constables, and others.
Red Tape
A multiplicity of laws, lengthy and slow bureaucratic procedures and excessive regulations may drive individuals/businesses to engage in corrupt practices to bypass bureaucratic hurdles. For example, four labour codes in 2019/2020 subsumed 29 central labour and industrial laws.
In addition, a long chain of hierarchy results in a large number of functionaries between citizens and decision-makers, which diffuses the sense of accountability.
Lack of effective legislation
There are several shortcomings in the legislative framework to prevent corruption. For example, lack of Whistleblower Protection, lack of Public Service Delivery Act, etc, may deter individuals from reporting corruption.
Weak Institutions and ineffective implementation of legal frameworks
Institutions like Lokpal, Lokayukt, Information commissions, CBI, Enforcement Directorate, Central Vigilance Commission, etc., that are responsible for enforcing laws and regulations are plagued by several weaknesses. These are underfunded, understaffed, and/or depend on executive patronage. For example, the Supreme Court cautioned the government in November 2023 that if governments do not fill up vacancies in the 26 Information Commission (IC) offices, the legislation risks being reduced to a “dead letter”. Weak institutions fail to implement laws that hold corrupt individuals accountable effectively.
Impunity due to the inadequate punishment of corrupt individuals encourages further corruption and leads to reduced morale of honest officers. Individuals start to believe that they can get away with corrupt practices and start to engage more in corruption.
Colonial Legacy
The colonial legacy of the British Raj led to the concentration of power among a few powerful people, the prevalence of unchallenged authority, and a tendency to exercise power arbitrarily. These features became so entrenched that, to some extent, they continue to plague our administration and polity even today.
Faulty Policies for the welfare of the masses
Policies that were adopted after independence for the welfare of the masses have benefitted the masses but failed to empower them properly. For example, state subsidy programmes, along with the lack of public participation and the lack of public oversight over public authorities, converted public servants into patrons and citizens into mendicants.
Criminal-Politician-Bureaucrat Nexus
Politicians may use proceeds from crime and the muscle power of criminals to secure votes. Criminals not only get protection from politicians/bureaucrats but also enter politics and/or interfere in the workings of bureaucracy. For example, as per the ADR report, around 43% of MPs in the 2019 Lok Sabha had criminal charges against them.
Implications of Corruption
Effects on Public Life and Public Interest
- Poor quality of public services and reduced Public Welfare: People may need to pay for public services that they are entitled to. For example, for electricity connection, distribution of relief funds, etc.
- Lack of access to Justice: Corruption in the judiciary can lead to corruption in all other organs of government and a lack of access to justice in the country. Corruption in police leads to ineffective investigation processes and emboldening of criminals. At the same time, the trust of common people is reduced.
- Loss of Opportunity: High corruption may lead to the failure of genuine business enterprises, and deserving youths cannot get employment. Thus, Corruption not only inflicts financial challenges but also leads to a loss of opportunities for individuals.
Effects on Society
- Normalisation of Corruption: People gradually accept such behaviour as a part of life. It may degrade ethical standards in society and lead to an overall deterioration of morality in society.
- Discouraging Public Oversight: It reduces the morale of honest people and discourages them from engaging in public oversight and whistle-blowing activities.
- Social Inequalities: Lack of social mobility perpetuates and aggravates inequalities. It results in a lack of fair access to resources, impedes societal progress and creates tensions in society.
- Social Injustice: It disproportionately affects the most vulnerable sections of society. It undermines human rights for marginalized groups.
Effects on the Economy:
- Poor Ease of Doing Business: bribes add to the costs of doing business.
- Decreased flow of Foreign Investment: foreign investors avoid investing in developing countries.
- Lack of Development: The reduced flow of foreign investments and poor ease of doing business results from regional disparities and lack of development in most regions.
- Poor development of Infrastructure: companies do not wish to invest due to lack of proper roads, water, and electricity, which hinders economic development.
- Black Money and Black Market: Black markets expand, shell companies multiply, and the start-up environment deteriorates.
- Inefficient markets: Corruption leads to manipulation of markets, favouring certain businesses or individuals. This can result in cartelisation, monopolies or oligopolies, limiting competition and stifling innovation.
Effects on the Polity
- Distrust in Government: electors may lose faith, become indifferent to political processes, and abstain from participating in voting (voter apathy).
- Limits the government’s ability to fund essential public services and infrastructure projects.
- Reduced legitimacy of government: Corruption erodes the legitimacy of political institutions in the eyes of the public and undermines democracy. It can lead to social unrest, political instability, and even violent conflicts.
Effects on Environment:
- Poor Environment Impact Assessment: Projects may not be properly assessed before implementation. Pristine forests can be diverted for non-strategic projects.
- Overexploitation of resources: Corruption leads to poor resource efficiency and a non-circular economy. The country’s resources are overexploited and depleted, hampering future economic growth potential.
- Fragmentation of Habitats: It leads to environmental degradation, deforestation and loss of biodiversity.
- Unsustainable economic growth: Corruption reduces avenues for sustainable growth by which Inter- and intra-generational equity is hampered.
Effects on International Relations
- Global inequities: It can hamper international trade and investments, create unfair competition, and lead to the widening of inequalities between developed and developing countries.
- Organized crime and Terrorism: Corruption not only provides financial backing to organised crime and terrorism but also provides protection from investigation agencies.
- Undermine global economic stability: It may lead to trade wars, currency wars, and failure of banks or markets, which in turn may hamper global economic stability.
Conclusion
Corruption is one of the crucial challenges in achieving Probity in governance. Corruption is mainly a governance issue – a failure of institutions and a lack of capacity to manage by means of an effective framework of social, judicial, political, and economic checks and balances. Therefore, Implementing and enforcing rules and regulations that guarantee accountability and transparency is crucial to preventing corruption and ensuring Probity in governance.
| Previous year UPSC questions |
“If a country is to be corruption-free and become a nation of beautiful minds, I strongly feel that there are three key societal members who can make a difference. They are father, mother and teacher.” – A.P.J. Abdul Kalam (2022)
(a) Evaluate the effectiveness of these measures with justifications. (b) Suggest more effective strategies to tackle this menace. (2015)
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