Corruption and Administration | Public Administration Optional for UPSC (Notes) PDF Download

Introduction

Corruption, an issue that pervades every corner of Indian society, has become a frequent topic of public debate. From slum dwellers to the highest-ranking officials, corruption's influence is far-reaching. Like the fictional character Voldemort, corruption thrives with every mention. As the renowned Kautilya once said, "Just as it is impossible not to taste the honey that finds itself on the tip of the tongue, so it is impossible for a government assistant not to eat up, at least a bit of King's revenue."

Understanding Corruption

Transparency International (TI) defines corruption as the "abuse of entrusted power for private gain." Corruption can be categorized as grand, petty, or political, depending on the amount of money lost and the sector in which it occurs.

Status of Corruption in India

According to the Corruption Perceptions Index (CPI) of 2021, India ranked 85th out of 180 countries. This ranking indicates that the perception of corruption in the public sector is relatively high. The countries at the bottom of the list are considered to have the most honest public sectors. India's struggle to control corruption is evident from the data presented by the CPI and the India Corruption Survey 2019, which revealed that 51% of respondents admitted to paying bribes. The states of Rajasthan and Bihar were particularly alarming, with 78% and 75% of respondents admitting to bribery, respectively.

Causes of Corruption

Investigating the root causes of corruption reveals a complex socio-political-economic-administrative landscape that perpetuates corruption on a daily basis. Several factors contribute to the prevalence of corruption in India:

1. Legacy Issues:

• Rampant poverty and depleted government coffers at the time of independence led to chronically low salaries for government officials.
• The pre-liberalization era's license permit raj, coupled with monopolies and restrictive trade practices, facilitated corruption.
• Lack of economic freedom allowed for system abuse, overshadowing vigilance procedures.

2. Political System:

• The use of black money during elections creates a need for cost recovery through malpractices, breaching statutory spending limits.
• Lack of transparency in election funding and the prevalence of quid pro quo arrangements foster a nexus between politicians and corporations, known as crony capitalism.
• Criminalization of politics occurs when those who break the rules become the lawmakers, resulting in a breakdown of the rule of law.

3. Economic Structure:

• The economy's low level of formalization (only 10%) fosters the growth of black money.
• Stringent compliance rules for business entry and exit lead to bribery.
• Unequal distribution of wealth correlates directly with corruption levels.

4. Legal Lacunae:

• Archaic laws like the Indian Penal Code of 1860 fail to capture the complexities of administration, allowing wrongdoers to escape.
• Amendments to the Prevention of Corruption Act narrow down the definition of corruption and increase the burden of proof, requiring prior approval from the government for inquiries or investigations of officials.
• Lacunae in the Lokpal Act and delays in appointments at both state and central levels hinder the anti-corruption efforts.
• Dilution of the Right to Information Act and political misuse of agencies like the Central Bureau of Investigation (CBI) exacerbate corruption.

5. Administrative Lacunae:

• Loopholes in the system grant discretionary powers to officials, making them susceptible to corruption.
• Vigilance institutions lack resources, funding, infrastructure, and manpower.
• Failure to adopt standard practices in organizations such as banks and sports organizations contributes to multi-billion-rupee scams, such as the Punjab National Bank scam and the Commonwealth scam.

6. Judicial Delays:

• Delays and insufficient evidence or faulty investigations in corruption cases erode public trust in the judicial system.
• Nexus between politicians, public servants, and lower-level judiciary perpetuates corruption.

7. Lack of Protection for Whistleblowers:

• Targeting of honest officials and rewarding corrupt officials discourages reporting of corruption.
• Inadequate protection measures for whistleblowers deter them from coming forward.

8. Social Problems:

• A mindset among citizens that accepts corruption as a necessary part of the system and fails to address it seriously.
• Illiteracy, poverty, and a lack of understanding of complex procedures contribute to corruption.
• Increasing consumerism among the new middle class leads to a willingness to offer bribes for expedited services.
• Failure of social morality and the education system to inculcate values that discourage corruption.

Impacts of Corruption

Corruption has far-reaching consequences that hinder the development and well-being of society. The impacts can be seen in various sectors:

1. Hindrances to Development:

• Corruption diverts public wealth and taxpayers' money, leaving limited resources for social sector spending.
• Development projects often face delays due to red tape and corruption, causing a drain on resources.
• Impoverished individuals resort to out-of-pocket expenditures to access basic services, perpetuating a cycle of poverty.
• Corruption in social sectors like the Public Distribution System (PDS), healthcare, and education further exacerbates demographic disadvantages.
• Misdirected development strategies favor big-budget projects and crony capitalism over decentralized and targeted initiatives.

2. Economic Loss:

• Corruption in public services poses high risks for businesses, leading to unwanted red tape, petty corruption, and bribery.
• Improper allocation policies undervalue resources such as coal blocks, hydrocarbon projects, and spectrum allocation, resulting in mismanagement and environmental degradation.
• Corruption within the financial sector, including banks and stock markets, weakens the economy.
• Rising black money artificially inflates market capabilities, making it susceptible to collapse.

3. Harmful to National Security:

• Corruption in defense procurement undermines the preparedness of the armed forces.
• Corruption within border security establishments creates vulnerabilities for terrorist infiltration.
• Illegal migration and the resultant National Register of Citizens (NRC) issue pose threats to national security.

4. Social Sector Losses:

• Corruption in government projects targeting the poor and vulnerable widens the economic gap between the rich and the poor.
• The burden of corruption is often borne by the poor, while the big scams result in increased taxes for the general population.
• Inter-generational parity in taxation is hampered by the corrupt system, perpetuating poverty.

5. Loss of Faith in the System:

• Corruption hampers democracy and the rule of law, eroding the legitimacy of political systems.
• Loss of legitimacy opens doors for non-state actors to exert influence.
• Judicial corruption undermines trust in the judicial system.

Way Forward: Combating Corruption

Addressing corruption requires comprehensive reforms across all aspects of governance. The following measures can contribute to the fight against corruption:

1. Electoral Reforms:

• Bar criminals from participating in elections, as recommended by the Election Commission.
• Impose limits on political parties' overall expenditure.
• Implement state funding of elections.
• Strengthen the Election Commission of India by giving legal force to the Model Code of Conduct (MCC) and criminalizing paid news.

2. Strengthening Autonomous Institutions:

• Protect the autonomy of institutions such as the Central Information Commission (CIC) by granting them constitutional status.
• Provide necessary resources, infrastructure, and training to vigilance agencies.
• Eliminate overlapping jurisdiction between institutions like the Lokpal and the Central Bureau of Investigation (CBI).

3. Administrative Reforms:

• Establish a Civil Service Board to reduce excessive political control over the administration.
• Streamline government hierarchies.
• Conduct periodic sensitivity training for civil servants.
• Simplify disciplinary proceedings and enhance preventive vigilance within departments to deter corrupt practices.

4. Police and Judicial Reforms:

• Implement the recommendations of the Prakash Singh Committee to reform the police.
• Initiate reforms in the judiciary to improve its efficiency and integrity.

5. Governance Reforms:

• Promote e-governance to enhance accountability and transparency, reduce manual interface, and prevent bribery.
• Implement projects like Digital India and the Government e-Marketplace.
• Enact the Right to Service Act, as demonstrated by the Rajasthan Social Accountability Bill.

6. Economic Reforms:

• Address legal loopholes in banking and stock market legislation.
• Improve corporate governance based on recommendations from corporate governance committees.
• Promote formalization of the economy.
• Refine and expedite the implementation of the Goods and Services Tax (GST).

7. Social Sector Improvements:

• Empower citizens through awareness programs on the Right to Information (RTI) Act, Citizens Charter, and social audits.
• Increase democratization and participation of the masses in decision-making processes.
• Incorporate values-based education reforms to instill ethical mindsets in the youth.

Conclusion

Integrity, transparency, and the fight against corruption must become ingrained in the culture and considered fundamental values of society. While eliminating corruption entirely may seem challenging, an incremental approach can lead to achievable targets and faster progress. Continuous checks and balances are necessary to sustain the fight against corruption. India's fight against corruption is ongoing, and it requires homegrown solutions tailored to the country's specific challenges.