The economy of India was under socialist-inspired policies for an entire generation from the 1950s until the late 1980s. The economy was characterized by extensive regulation, protectionism, and public ownership, policies vulnerable to pervasive corruption and slow growth.[7][8][9][10] License Raj was often at the core of corruption.
The Vohra Report, submitted by the former Indian Union Home Secretary, N.N. Vohra, in October 1993, studied the problem of the criminalisation of politics and of the nexus among criminals, politicians and bureaucrats 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 political parties — and the protection of government functionaries. It revealed that political leaders had become the leaders of gangs. Over the years criminals had been elected to local bodies, State Assemblies, and even the Parliament. The unpublished annexures to the Vohra Report are believed to contain highly explosive material.
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."[11] 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. 'Italic text'''Bold text'''
[edit]
Politics
As of December 2008, 120 of India's 522 parliament members were facing criminal charges.[12] Many of the biggest scandals since 2010 have involved very high levels of government, including Cabinet Ministers and Chief Ministers, such as in the 2G spectrum scam, the 2010 Commonwealth Games scam and the Adarsh Housing Society scam, mining scandal in Karnataka and cash for vote scam.
[edit]
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.[2] Taxes and bribes are common between state borders; Transparency International estimates that truckers pay annually US$5 billion in bribes.[3] 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 India's civil servants was a "slow and painful" process.[13]
[edit]
Land and property
Officials often steal state property. In cities and villages throughout India, 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.[14]
[edit]
Tendering processes and awarding contracts
Government officials having discretionary powers in awarding contracts engage in preferential treatment for selected bidders and display negligence in quality control processes[citation needed]. 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.[15] 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.[16]
[edit]
Medicine
In Government Hospitals, corruption is associated with non availability of medicines (or duplicate/fake medicines), getting admission, consultations with doctors and availing diagnostic services.[2]
[edit]
Income tax department
There have been several cases of collusion of officials of the income tax department of India for a favorable tax treatment in return for bribes.[17][18]
[edit]
Preferential award of public resources
See also: Illegal mining in India
As detailed earlier, land in areas with short supply is relatively common with government entities awarding public land to private concerns at negligible rates. Other examples include the award of mining leases to private companies without a levy of taxes that is proportionate to the market value of the ore.[citation needed]
[edit]
Black money
Main article: Indian black money
Black money refers to money removed from the official economy (via corruption, bribery, tax evasion, etc.) and stored outside of the country. A November 2010 report from the Washington-based Global Financial Integrity estimates that India lost at least US$462 billion in illicit financial flows, another word for black money, from 1948 through 2008. 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 GDP.[19]
[edit]
Black Money in Switzerland
According to a 2010 The Hindu article, unofficial estimates indicate that Indians had over US$1456 billion in black money stored in Swiss banks (approximately USD 1.4 trillion).[20] 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,[21][22] a more recent report quoted the SBA's Head of International Communications as saying that no such official statistics exist.[23] Another report said that Indian-owned Swiss bank account assets are worth 13 times the country’s national debt.[24]
[edit]
Judiciary
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".[25]
[edit]
Armed forces
The Indian Armed Forces have witnessed corruption involving senior armed forces officers from the Indian Army, Indian Navy and Indian Air Force. A number of scandals in the 2000-2010 period damaged the military's reputation; such scandals included skimming of armed forces money, re-selling of government property, and faking combat missions.[26]
[edit]
Right to Information Act
Main article: 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, computerization 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.[2][27] The 2006 report by Transparency International puts India at the 70th place and states that significant improvements were made by India in reducing corruption.[28][29]
[edit]
Ombudsmen
Main article: 2011 Indian anti-corruption movement
The Lokayukta is an anti-corruption organization in the Indian states.[30][31] These institutions are based on the Ombudsman in Scandinavian countries. An amendment to the Constitution has been proposed to implement the Lokayukta uniformly across Indian States as a three-member body, headed by a retired Supreme Court judge or high court chief justice, and comprise of the state vigilance commissioner and a jurist or an eminent administrator as other members.[32]
Social welfare worker Anna Hazare has led a movement to compel the Indian Government to notify the Committee for the implementation of the Lokayukta against corruption as an independent body and also giving enough powers to the Lokayukta to also receive corruption complaints against politicians, bureaucrats and even sitting judges. Anna Hazare is currently pursuing an agenda to pass a bill called Jan Lokpal bill, and he has gathered the support of many citizens residing in metropolitan cities of India. He was on an indefinite fast at the Ramlila Grounds, Delhi, in order to campaign for the cause.[33]
[edit]
Whistleblowers
See also: Whistleblower protection in India
Whistleblowers play a major role in the fight against corruption. India currently does not have a law to protect whistleblowers, which was highlighted by the assassination of Satyendra Dubey. Indian courts are regularly ordering probe in cases of murders or so-called suicide of several whistle blowers. One of the latest case of such murder is of V Sasindran Company Secretary of Palakkad based Malabar Cement Limited, a Government company in Kerala and his two minor children, Kerala High Court ordered CBI probe on 18 February 2011. Initially, CBI showed its unwillingness for probing into such cases citing over-burden as a reason.
[edit]
Anti-corruption police and courts
The income tax department of India, Central Vigilance Commission and Central Bureau of Investigation all deal with anti-corruption initiatives. Certain states such as Andhra Pradesh (Andhra Pradesh Anti-corruption Bureau) and Karnataka (Lokayukta) also have their own anti-corruption agencies and courts.[34][30]
[edit]
Anti-corruption organizations
A variety of organizations have been created in India to actively fight against corrupt government and business practices. Notable organizations include:
5th Pillar is most known for the creation of the zero rupee note, a valueless note designed to be given to corrupt officials when they request bribes.
India Against Corruption is a movement created by a citizens from a variety of professions and statuses to work against corruption in India. It is currently headed by Anna Hazare.[35]
Jaago Re! One Billion Votes is an organization originally founded by Tata Tea and Janaagraha to increase youth voter registration.[36] They have since expanded their work to include other social issues, including corruption.[37]
Association for Social Transparency, Rights And Action (ASTRA) is an NGO focused on grass-roots work to fight corruption in Karnataka.
One organization, the Lok Satta Movement, has transformed itself from a civil organization to a full-fledged political party, the Lok Satta Party. The party has fielded candidates in Andhra Pradesh, Tamil Nadu, and Bangalore. In 2008, it obtained its first elected post, when Jayaprakash Narayan won the election for the Kukatpally Assembly Constituency in Andrha Pradesh.
[edit]
Effects of corruption
According to a report by KPMG, "high-level corruption and scams are now threatening to derail the country's credibility and [its] economic boom".[38]
The Vohra Report, submitted by the former Indian Union Home Secretary, N.N. Vohra, in October 1993, studied the problem of the criminalisation of politics and of the nexus among criminals, politicians and bureaucrats 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 political parties — and the protection of government functionaries. It revealed that political leaders had become the leaders of gangs. Over the years criminals had been elected to local bodies, State Assemblies, and even the Parliament. The unpublished annexures to the Vohra Report are believed to contain highly explosive material.
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."[11] 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. 'Italic text'''Bold text'''
[edit]
Politics
As of December 2008, 120 of India's 522 parliament members were facing criminal charges.[12] Many of the biggest scandals since 2010 have involved very high levels of government, including Cabinet Ministers and Chief Ministers, such as in the 2G spectrum scam, the 2010 Commonwealth Games scam and the Adarsh Housing Society scam, mining scandal in Karnataka and cash for vote scam.
[edit]
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.[2] Taxes and bribes are common between state borders; Transparency International estimates that truckers pay annually US$5 billion in bribes.[3] 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 India's civil servants was a "slow and painful" process.[13]
[edit]
Land and property
Officials often steal state property. In cities and villages throughout India, 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.[14]
[edit]
Tendering processes and awarding contracts
Government officials having discretionary powers in awarding contracts engage in preferential treatment for selected bidders and display negligence in quality control processes[citation needed]. 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.[15] 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.[16]
[edit]
Medicine
In Government Hospitals, corruption is associated with non availability of medicines (or duplicate/fake medicines), getting admission, consultations with doctors and availing diagnostic services.[2]
[edit]
Income tax department
There have been several cases of collusion of officials of the income tax department of India for a favorable tax treatment in return for bribes.[17][18]
[edit]
Preferential award of public resources
See also: Illegal mining in India
As detailed earlier, land in areas with short supply is relatively common with government entities awarding public land to private concerns at negligible rates. Other examples include the award of mining leases to private companies without a levy of taxes that is proportionate to the market value of the ore.[citation needed]
[edit]
Black money
Main article: Indian black money
Black money refers to money removed from the official economy (via corruption, bribery, tax evasion, etc.) and stored outside of the country. A November 2010 report from the Washington-based Global Financial Integrity estimates that India lost at least US$462 billion in illicit financial flows, another word for black money, from 1948 through 2008. 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 GDP.[19]
[edit]
Black Money in Switzerland
According to a 2010 The Hindu article, unofficial estimates indicate that Indians had over US$1456 billion in black money stored in Swiss banks (approximately USD 1.4 trillion).[20] 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,[21][22] a more recent report quoted the SBA's Head of International Communications as saying that no such official statistics exist.[23] Another report said that Indian-owned Swiss bank account assets are worth 13 times the country’s national debt.[24]
[edit]
Judiciary
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".[25]
[edit]
Armed forces
The Indian Armed Forces have witnessed corruption involving senior armed forces officers from the Indian Army, Indian Navy and Indian Air Force. A number of scandals in the 2000-2010 period damaged the military's reputation; such scandals included skimming of armed forces money, re-selling of government property, and faking combat missions.[26]
[edit]
Right to Information Act
Main article: 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, computerization 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.[2][27] The 2006 report by Transparency International puts India at the 70th place and states that significant improvements were made by India in reducing corruption.[28][29]
[edit]
Ombudsmen
Main article: 2011 Indian anti-corruption movement
The Lokayukta is an anti-corruption organization in the Indian states.[30][31] These institutions are based on the Ombudsman in Scandinavian countries. An amendment to the Constitution has been proposed to implement the Lokayukta uniformly across Indian States as a three-member body, headed by a retired Supreme Court judge or high court chief justice, and comprise of the state vigilance commissioner and a jurist or an eminent administrator as other members.[32]
Social welfare worker Anna Hazare has led a movement to compel the Indian Government to notify the Committee for the implementation of the Lokayukta against corruption as an independent body and also giving enough powers to the Lokayukta to also receive corruption complaints against politicians, bureaucrats and even sitting judges. Anna Hazare is currently pursuing an agenda to pass a bill called Jan Lokpal bill, and he has gathered the support of many citizens residing in metropolitan cities of India. He was on an indefinite fast at the Ramlila Grounds, Delhi, in order to campaign for the cause.[33]
[edit]
Whistleblowers
See also: Whistleblower protection in India
Whistleblowers play a major role in the fight against corruption. India currently does not have a law to protect whistleblowers, which was highlighted by the assassination of Satyendra Dubey. Indian courts are regularly ordering probe in cases of murders or so-called suicide of several whistle blowers. One of the latest case of such murder is of V Sasindran Company Secretary of Palakkad based Malabar Cement Limited, a Government company in Kerala and his two minor children, Kerala High Court ordered CBI probe on 18 February 2011. Initially, CBI showed its unwillingness for probing into such cases citing over-burden as a reason.
[edit]
Anti-corruption police and courts
The income tax department of India, Central Vigilance Commission and Central Bureau of Investigation all deal with anti-corruption initiatives. Certain states such as Andhra Pradesh (Andhra Pradesh Anti-corruption Bureau) and Karnataka (Lokayukta) also have their own anti-corruption agencies and courts.[34][30]
[edit]
Anti-corruption organizations
A variety of organizations have been created in India to actively fight against corrupt government and business practices. Notable organizations include:
5th Pillar is most known for the creation of the zero rupee note, a valueless note designed to be given to corrupt officials when they request bribes.
India Against Corruption is a movement created by a citizens from a variety of professions and statuses to work against corruption in India. It is currently headed by Anna Hazare.[35]
Jaago Re! One Billion Votes is an organization originally founded by Tata Tea and Janaagraha to increase youth voter registration.[36] They have since expanded their work to include other social issues, including corruption.[37]
Association for Social Transparency, Rights And Action (ASTRA) is an NGO focused on grass-roots work to fight corruption in Karnataka.
One organization, the Lok Satta Movement, has transformed itself from a civil organization to a full-fledged political party, the Lok Satta Party. The party has fielded candidates in Andhra Pradesh, Tamil Nadu, and Bangalore. In 2008, it obtained its first elected post, when Jayaprakash Narayan won the election for the Kukatpally Assembly Constituency in Andrha Pradesh.
[edit]
Effects of corruption
According to a report by KPMG, "high-level corruption and scams are now threatening to derail the country's credibility and [its] economic boom".[38]
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