Corruption in India, root cause and solution

Rajesh studies in Class 8^th. He was bit worried as next day he was supposed to participate in school debate with topic of “Corruption in India and solutions”. He tried to find information on internet but got confused with plethora of information.

He rushed to his Grand Father, Mr. Ashok Nath who retired as school teacher almost 20 years back. Rajesh told his dilemma that even after browsing internet for hours he couldn’t comprehend the debate topic.

Grandpa with smile on his face replied “hey son, it’s so simple. Let’s assume you have come first in Mathematics test in your school and your school can send only 1 student in interschool championship so ideally you should represent your school but there is rich boy who secured 3^rd position in same test, his father bribes your teacher to include his son’s name for representing the school, because of bribe, your teacher removes your name and includes rich kid’s name then how will you feel?

Rajesh replied “obviously angry and frustrated, I will immediately go to my principal and complain”

Grandpa said “Let’s assume, your teacher shares some of his bribe with the principal hence principal refuse to intervene, now in this case what you will do?”

Rajesh replied “I will be completely dejected and most probably next year won’t participate in such test, if such corruption continues may be other good students will also stop appearing for the test, the non-deserving students who will represent school will lose and thus prestige of school would be at stake”

Grandpa replied “So my son, this was example of corruption where deserving person or institution suffers because of illegitimate personal gain of someone else so the easy definition of corruption is “Corruption is the abuse of entrusted power for private gain”

Rajesh said “Grandpa, I have understood but how corruption affects country?”

Grandpa said “OK Let me explain:

1. In 2011, Professor Bibek Debroy and Laveesh Bhandari claim in their book” Corruption in India: The DNA and RNA” that public officials in India may be cornering as much as ₹1 lac crore per annum i.e 1.26 per cent of the GDP through corruption.


2. Washington-based, Global Financial Integrity agency claimed that post-Independence, India lost a staggering USD 462 billion (₹ 32 lac crore)  in illicit financial flows due to tax evasion, crime and corruption.


3. Corruption doesn’t affects only financially but can cost lives also, bbecause of corruption in RTO i.e people do get driver license without visiting RTO i.e without appearing for driving test. Such people are ignorant of basic driving rules (overtaking from left, slowing down at corners, not following road sign etc) and contributes to many accidents. Road accident kills more than 1.5 lac people every year in India. Imagine somebody who is not at fault but bears burnt of someone else’s wrong driving. If corruption in RTO can be eliminated, many lives can be saved.


4. Few months back,  Anti-corruption bureau conducted raid at residence of a Town planning director and found wealth worth ₹ 500 crore against his annual income of approximately ₹ 12 lac.


5. As per Transparency International, India ranks 81^st in list of least corrupt countries.

Rajesh was shocked to listen these astronomical figures, he asked to his grandpa “don’t we have strong laws to fight against corruption”?

Grandpa said “it won’t be appropriate to say that laws are not there, in fact on the paper we have more than half dozen acts which are there to address issue of corruption”

Rajesh asked “Grandpa, despite so many laws, why corruption is so high in India?

Grandpa replied “there are numerous reason like too much of delay in approvals, officers can decide things based on whims and fancy, cumbersome process i.e many layers are there hence shortcuts are being looked for faster turnaround, very high tax rates, ethical values have done down, people are not aware of their rights and slow judicial process. In 1973-74 the highest tax rate slab applicable to an individual was of 97.50 per cent. The red tapes i.e too much of state interference can be understood with the fact that as recent as 6 years back the builders were supposed to take 86 types of government approval to start the project, that was leading to extraordinary delay in projects so builders chose the route of bribe and influence. So these are the broad reasons behind corruption in our country”

Rajesh curiously asked “Grandpa, if reason of corruption is known then why it’s not being stopped?”

Grandpa replied “Dear Rajesh, it’s not so simple, let me explain why, in democracy, power lies with people who elect political representatives, these representatives are supposed to make law and ensure its enforcement through bureaucracy, if bureaucracy is not functioning properly, elected representatives do have power to punish bureaucracy through suspension, transfer and holding promotion, therefore on the paper, system looks perfectly fine. Bureaucracy i.e Govt officials wants to accumulate money through corruption. Bureaucracy reports to elected representatives (politicians) so if politicians want, they can pull-up bureaucracy and curb corruption. Now the challenge is that politicians have divided people i.e voters in cast, religion, regionalism, language and social strata hence so called voter becomes weak and advantage of this weakness is taken by our politicians, they with help of bureaucracy do corruption and make money and in turn common people and country pays the price ”

Rajesh got further puzzled, he asked “if politicians can curb corruption then why they are not doing so?”

Grandpa replied “my son, unfortunately, our election has become game of muscle power and money power. As voters are ignorant and divided, it’s very difficult for honest person to win election because those who have money distributes money/liquor in election for votes, because of this kind of spending of money, they win. Politicians borrows money from industrialist /businessman/mafia with promise of returning the favour after winning the election. So, if before getting elected, Politicians have spent such huge money and also they are supposed to return the favour, they will retort to do corruption”

Rajesh asked “Grandpa, do you mean to say that root cause of corruption in India is political funding? If yes then how these corrupt politicians makes money after winning election”

Grandpa replied “Yes, you understood correctly, let me explain you how corrupt politicians make money?

1. These elected MLAs/MPs becomes liasoning agent between greedy businessmen and corrupt Bureaucrats and politicians. He will put pressure on Public sector banks for risky loans for his near & dear and once loan is defaulted he will influence for settlement at peanut price.


2. They would pass on vital future policy information to big corporates and in return they would get suitcase full of money. Our country is growing very fast and urbanization is further increasing thus real estate sector grows rapidly. In cities the connectivity (Road/Metro/Flyover/Bridge) plays very important role in increase land prices of specific areas. These people know master plan of city much in advance, they purchase properties in those areas and after connectivity they sell those properties at multiple rates.
3. They would influence appointment of top brass i.e Managing Director of PSUs, Vice Chancellor in Universities, Secretary in ministries etc thus these people will twist and tweak system to return favour.
4. They would send clear signal to police and authorities to stay away from his men so that he can continue his illegal activity of tax evasion, grain hoarding, illegal construction etc.
5. Lot many foreign companies wants to enter into Indian market but restriction in FDI makes it difficult for them. These companies target such businessmen turned Politician for intense lobbying. In return of lobbying politicians gets huge money.
6. They would influence Govt land allocation at through away prices, he will pressurize bureaucracy for withdrawal of tax evasion charges against businessmen. For every favour, he will collect money.  All these things will affect ex-chequer i.e Govt’s ability of collecting money and spending for development.
7. Corrupt bureaucrats colludes with these politician and thus politician shields him from any enquiry/punitive action. 
8. Politicians do give patronage to Construction mafia thus quality of state funded construction activity suffers. As per rumors, politician take 30% cut in the cost of construction.

Rajesh asked “Grandpa, I have understood the root cause of corruption, so what is the solution?”

Grandpa replied “addressing the root cause of corruption i.e political funding is very difficult but attacking corruption at Bureaucracy level will certainly weaken the politicians, let me explain how”

1. Use of digital technology to catch hold of bogus beneficiary i.e Aadhaar has helped Government to identify more than 2.75 crore bogus ration card holders, more than 4.4 lac non-existent student beneficiary of mid-day meal in just 3 states ( Andhra Pradesh, Jharkhand and Manipur),  recently in Uttar Pradesh, a woman had collected the state government’s pregnancy dole (Janani Suraksha Yojna)  five times in ten months. So many scams or corruption unearthed because of power of usage of digital technology.  Direct benefit transfer i.e directly depositing money into beneficiary account is excellent initiative. It’s removed middlemen who were taking bribe.


2. Bribe is asked as well as given by humans, computers luckily do not ask or give bribe hence it makes sense to remove people to Govt Babu dealing. Online service delivery mechanisms do away with unnecessary job positions and eliminate power-wielding touts and agents, thus eliminating bribery opportunities. Online platform i.e Computerized Seva Kendra are helping people to get desired services without paying bribe to anyone. For all Government purchase there should be e-bidding/e-tendering.


3. Usage of drone and satellite image to know actual status of construction like road, pond, toilets etc. Even afforestation projects and crop damages estimate can be monitored digitally. Modern technology can be new tool of fight against corruption.


4. Less cash society will tremendously help in curbing corruption. In case of cash, there is no transaction trail available but in case of digital transaction there will be trail and with help of trail the corrupt person can be nabbed. This is the reason why corrupt person never takes bribe through cheque or online payment.


5. Right to Information is excellent tool in hand of citizen. If corrupt politician or officer has given any approval by bending the rule, the same can be caught with help of information gathered through RTI hence because of fear of RTI, corrupt people would refrain from rampant corruption.


6. Removing red tape in approval process i.e reducing number of approval required. Provision of Single window clearance. Govt’s focus on Ease of Doing business is very helpful for long term.


7. Government must start taking people’s feedback more extensively. Recently Indian Railway has started taking telephonic feedback about its facilities. This is excellent initiative to know real time problem. Similarly Government must implement the feedback system for all Government related services like feedback of Govt hospital facilities, Govt School’s education quality, RTO related services, feedback about municipal corporation, electricity department, water supply, police department etc. This will give a fair idea of systemic inefficiencies. The fear of adverse feedback will keep Government servants on their toes.


8. Getting work done by Government department is herculean task. Many times, delay is deliberately done by Government servants as tactics to take bribe. Sitting on the file is big disease in our country, this is source of corruption and also delays the progress of country. Government should start using Barcode technology to know the status of file and exact time taken at each stage of file clearance.
9. Corruption is nothing but taking advantage of systemic loopholes. Today in running train, TTE gives confirm birth to general ticket holder by taking bribe while RAC/Waitlisted passengers in same bogie doesn't get seat. Just imagine if there is digital tracking i.e TTE has to update PNR number of passenger in the portable device whom he has given seat, the central control room will get to know that TTE has bypassed 4 RAC/Waitlisted passengers and given seat to unreserved ticket holder. TTE would not like to lose his job hence he would not bypass the system (Because he would be caught). Similarly Govt must plug loopholes like IT exemption to farmers, incentive to exporters where Govt servant does compliance audit (why to give opportunity to rich exporter to bribe Govt Babus for undue favour?)
10. Awareness among common people about of Government welfare fund utilization will help to curb corruption immensely. Currently the unholy nexus converts Kuccha road of village into paved road on the paper and money is distributed among all stakeholders (Govt Servant, Village Sarpanch, local politicians and even with Govt auditors). Villagers doesn't know this entire thing hence don’t question or raise voice. Imagine if after completion of any development work there would be feedback SMS/Call to all residents of that village and same would be updated on the website, people would come to know that their village road is still Kuccha while as per Govt record it’s paved. People will come to know about such large scale corruption has happened and will question Sarpanch and stage protest.
    
11. There is CIBIL to know loan repayment score i.e credit worthiness. If a person defaults any loan repayment, in future he won’t be given loan by other banks. Loan taker afraid that in case of any default his name will reflect in CIBIL hence ensures smooth repayment history. This is beauty of seamless flow of information. Similarly let Govt Babu’s honesty score should be freely available on the website. Any corruption case/record should reduce his score.
    
12. Making judiciary more responsive and swift. As per current backlog cases and speed of trial it would take more than 300 years to clear the backlog. Unfortunately due to too slow judiciary, corrupt people are not afraid of law.
    
13. Removing subjectivity i.e power of officers to take call on whims and fancy. The decision should be based on preset logic. For example bank manager can’t approve loan if loan repayment score is less than certain point.
    
14. Police reform will help in reduction of political interference in police system hence this will lead to efficient policing.

Grandpa further said “once system so strong that politician is not able to take advantage, his ability to earn money would be too less hence his ability/ credibility to raise fund before election would be low as fund giver businessmen would think that even after winning election the politician won’t be able to earn money hence there is little chance that he can return monetary or business favour, thus root cause will be affected and honest people will get chance to win the election and they will further take steps to curb corruption”

Rajesh was delighted to know so much about corruption and its solution and went to sleep with hope in his eyes.

Jai Hind!

Manoj Tripathi

(The views in this article are personal, all characters are fictional and intention of this article is not to hurt sentiment of any person, cast, group or religion)