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CORRUPTION vs ECONOMIC DEVELOPMENT

CORRUPTION: A HOLE IN ECONOMIC DEVELOPMENT IN INDIA


Presented To : Mr. LATISH KAPADI

By : Mohan Singh 144

CORRUPTION
In a narrow sense, corruption is mostly concerned with bribery and it takes several forms. Corruption is a global phenomenon and it is omnipresent. Corruption has progressively increased and is now rampant in our society.
The misuse of public office for personal gains As an act of bribery involving a public servant and a transfer of tangible resources Corruption = Monopoly + Discretion Accountability

TYPES OF CORRUPTION
Bribery - Graft - Embezzlement Trading in influence - Kickbacks

Patronage - Nepotism and cronyism - Unholy alliance

Causes of corruption :
Change in the value system and ethical qualities of men who administer. In a highly inflationary economy, low salaries of government officials compel them to resort to the road of corruption.

Big industrialist fund politicians to meet high cost of election and ultimately to seek personal favour.

In order to get elected, politicians bribe poor illiterate people, who are slogging for two times meal.

Causes of corruption :
Lack of awareness Lack of proper Service-Level Agreements Lax supervision and monitoring of staff performance Discretion

Absence of appropriate grievance redressal mechanisms


Obsolete policies

Impact of corruption on Indias GDP growth

Impact of corruption in business

Impact of corruption in business

Perception of most corrupt industries

How will corruption scenario in India change How willin corruption the next scenario 2 years? in India change in the next 2 years?

List of scandals :

2011 Hasan Ali Khan scandal Indian Black Money in Swiss Banks Bellary mines scandal ISRO Spectrum Allocation Scam

2010 2G spectrum scam and Radia Tapes Controversy Adarsh Housing Society scam Commonwealth Games Scam 2009 Madhu Koda mining scam Satyam scandal Vasundhara Raje land scam

2008 Cash For Votes Scandal Pune billionaire Hasan Ali Khan tax default The Satyam scam 2006 Stamp Paper Scam Scorpene Deal Scam 2005 IPO scam Oil-for-food programme scam (Natwar Singh) 2004 Gegong Apang PDS Scam

Tackling Corruption
Lack of awareness can be removed by clearly specifying the guidelines and information about the services. Lack of proper SLAs can be taken care by a time bound service can be easily tracked by the citizens if the information is freely available hence empowering them to seek penalty when the SLA is missed. Lack of accountability, supervision can be improved through institutional diagnostics such as periodic or social auditing which can be facilitated by well documented information at disposal.

Discretion can also be kept under check if these subjective decisions are well documented and hence available for review.
Grievance mechanisms and obsolete policies need to be directly addressed

Key Principles
Local

Ownership

Increase accountability through increased transparency Enforce access to information to all Balancing of powers across executive, legislative and judiciary Broad-based capacity building

Public empowered to monitor the state


Administration based on rules Rule of law Focus on corruption initiated both from the North and South

Industry and standardization bodies can help


By documenting best practices Building necessary tools Using open standards, and Reporting case studies.

REALLY HONEST PERSON WILL NOT