CORRUPTION IN THE ECONOMY: IT IS THE ROOT CAUSE OF THE INDIAN ECONOMIC SLOWDOWN

The topic has two parts- (a) The rampant corruption in India and (b) Its adverse impact on the growth of the economy

ARGUMENTS FOR THE CORRUPTION IN THE ECONOMY-

(1) Transparency International in its study on the index of corrupt countries in 2012 placed India at 94th rank out of 176 countries while Somalia tops the list. Corruption in all walks of life in India is making it weak and has an adverse impact on its growth. As per an estimate, 80% of the public servants in India are corrupt because of this the wheel of growth is being pulled down.

(2) The Constitution of India describes the country as a “ Sovereign Socialist Democratic Republic” leading to socialist-inspired policies for an entire generation from 1950 until late 1980.

(3)The former Indian Union Home Secretary, N.N. Vohra, in October 1993, submitted a report on corruption in politics and its criminalization. Politicians have a nexus with criminals. This criminal network is running a parallel government and satisfying the selfish ends of vested interests. More than 100 Members of Parliament are facing charges of corruption or related criminal charges. Public money which has otherwise been utilized for the growth of the economy and for the welfare of the public was misused to satisfy the greed of such networks.

(4) Various government officials and politicians in connivance with Criminals tend to grab public property illegally. This land and property are meant for infrastructural or community development. These activities hamper the growth of the economy.

(5) Corrupt construction contractors in association with corrupt politicians and Public Works Department officers get the contracts and deliver poorly constructed roads, buildings, and bridges. News of building and bridge collapses is very common.

(6) The people have to pay bribes to get a job done in a public office. Taxes and bribes are common between state borders. As per an estimate more than Rs 24000 crores is paid in bribes. Government regulators and police share in bribe money, transporters have to pay bribes to cross the state borders within the country and this phenomenon can be witnessed at any state border including the capital. According to a World Bank report, the travel time for a Delhi- Mumbai trip can be reduced by about 2 days per trip if the corruption and associated regulatory stoppages to extract bribes were eliminated.

(7) Mineral resources are the backbone of the property of the country. The corrupt Ministers and government officials of such states go for awarding illegal mining of such rich resources. They illegally help transport the minerals like coal, iron ore, copper etc. to other places for their personal benefit. Economic growth is severely affected by such corrupt activities.

(8) Corruption also results in lower economic growth for a given level of income. With the reduction in corruption level in India the growth rate of GDP might increase by 5 to 7%. As per an estimate, corruption in India causes a loss of growth in terms of investment and employment by Rs 25000 crores.

ARGUMENTS AGAINST THE CORRUPTION IN ECONOMY

(1)?The history of corruption in India is not new. Even during the East India Company in the 17th Century, it was a serious issue. The economy has been running infected since then. To make India corrupt free it is important to explore the root causes of corruption in India which includes excessive regulations, complicated taxes and licensing systems, numerous government department infested with bureaucracy and discretionary powers, and monopoly by the government-controlled institution. These features cater to corruption on one hand and the lack of transparent laws and processes puts the public at the receiving end. However, corruption varies from state to state and place to place, from man to man.

(2)?India has widespread illiteracy. To weed out corruption and to put the wheel of growth on right track, Education is the basic requirement. Suitable law requires to be passed to make it a fundamental right as well as a fundamental duty of the state to impart education to each and every person in the state.

(3)??The fight against corruption to accelerate the growth has time and again been taken up by eminent social workers, activists like Anna Hazare, NGOs etc. Various stringent bills to rein in corruption are already present in the country like Indian Penal Code 1860, The Prevention of Corruption Act 1988, the Prevention of Money Laundering Act 2002 and the proposed Jan Lok Pal bill etc. Various Departments and organizations exist in the country to prevent corrupt practices example- CBI, Lokayukta etc.

?CONCLUSION

P S Bawa, Chair of Transparency International India, stated “Corruption is a hydra-headed monster and government have to make efforts to tackle it from all sides. This can only happen if all stakeholders work together” the efforts being taken by the watchdog to create awareness about corruption among people and steps being implemented to curb the menace have to be intensified to achieve a higher growth rate and improve the image of the country creating a better environment for investment and employment. India requires a transparent and effective policy implementation with more employment and business opportunities to move fast on the path of growth. ?