SOC 230 - Module 2

Corruption in Public Life

1. Introduction

• Definition: Corruption refers to unethical or dishonest actions taken by individuals in power, often involving bribery or misuse of authority for personal benefit.

• Prevalence: Corruption exists across governance, business, and everyday life, significantly hindering economic growth and undermining societal values.

• Context in India: Despite several measures implemented to combat corruption, instances persist, ranging from bureaucratic inefficiencies to political scandals.

2. Understanding Corruption

2.1. Definition

• Corruption: The abuse of entrusted power for private gain, encompassing acts such as bribery, embezzlement, nepotism, fraud, and influence peddling.

2.2. Types of Corruption

1. Petty Corruption: Minor abuse of power by lower-level officials (e.g., bribes for licenses).

2. Grand Corruption: Massive corruption at higher government levels (e.g., public fund embezzlement).

3. Political Corruption: Policy manipulation by political figures for wealth or power (e.g., vote buying).

4. Bureaucratic Corruption: Public servants misusing their authority.

5. Judicial Corruption: Bribery or favoritism among judicial officials, affecting justice.

6. Corporate Corruption: Unethical business practices (e.g., tax evasion, insider trading).

2.3. Causes of Corruption in Public Life

1. Lack of Transparency: Insufficient clarity in governance and decision-making processes.

2. Weak Institutional Framework: Ineffective anti-corruption bodies make regulation challenging.

3. Political Influence: Bureaucratic and judicial politicization leads to biased governance.

4. Poor Law Enforcement: Inadequate application of anti-corruption laws and slow judicial proceedings.

5. Socioeconomic Factors: Poverty and low public sector salaries catalyze bribery incidents.

6. Lack of Public Awareness: Ignorance of rights and reluctance to report corruption.

7. High Election Expenditure: Black money and corporate funding corruption during elections.

8. Cultural Factors: Corruption normalization rooted in historical practices.

2.4. Impact of Corruption on Public Life

• Political Impact: Erodes democratic institutions, fosters nepotism, and encourages malpractice.

• Economic Impact: Diverts development funds, increases business costs, and stagnates economic growth.

• Social Impact: Intensifies inequality, deteriorates public service quality, and undermines moral values.

• Judicial/Administrative Impact: Weakens rule of law, delays justice, and results in inefficient administration.

2.5. Corruption in India: Historical Perspective

• Pre-Independence Era: Colonial exploitation policies breed corruption.

• Post-Independence Era: Bureaucratic red tape and political corruption rise.

• 1990s Liberalization: Surge in corporate corruption and fraud opportunities.

• Recent Trends: Increased focus on digital technology and governance reforms against corruption.

2.6. Major Corruption Scandals in India

1. Jeep Scandal (1948): Defense procurement corruption case.

2. Bofors Scam (1980s): Bribery in defense procurement linked to Bofors.

3. 1992 Harshad Mehta Stock Market Scam: Banking loopholes exploited for manipulation.

4. Telgi Scam (2002): Counterfeit stamp paper scandal.

5. 2G Spectrum Scam (2008): Telecom license allocation corruption leading to a ₹1.76 lakh crore loss.

6. Commonwealth Games Scam (2010): Fund misappropriation for the Delhi Commonwealth Games.

7. Coal Allocation Scam (2012): Financial irregularities in coal block allocations.

8. Vyapam Scam (2013-2015): Corruption in Madhya Pradesh's recruitment processes.

9. PNB Scam (2018): ₹11,400 crore fraud by Nirav Modi.

2.7. Legal/Institutional Framework to Combat Corruption in India

Laws Against Corruption

1. Prevention of Corruption Act, 1988: Defines and punishes bribery and misuse of official power.

2. Lokpal and Lokayuktas Act, 2013: Establishes independent anti-corruption watchdogs.

3. Right to Information (RTI) Act, 2005: Enables citizens to request public information.

4. Benami Transactions (Prohibition) Act, 2016: Targets illegal property transactions.

5. Whistle Blowers Protection Act, 2014: Protects those reporting corruption.

6. Prevention of Money Laundering Act (PMLA), 2002: Prevents illegal financial transactions.

Institutional Mechanisms

1. Lokpal and Lokayuktas: Investigate corruption cases.

2. Central Vigilance Commission (CVC): Monitors public servant corruption cases.

3. Central Bureau of Investigation (CBI): Investigates high-profile corruption cases.

4. Enforcement Directorate (ED): Deals with money laundering.

5. Comptroller and Auditor General (CAG): Audits government finances for transparency.

Government Initiatives to Curb Corruption

1. Digital Governance: Implementing Aadhaar and Direct Benefit Transfer to reduce corruption.

2. Demonetization (2016): Targeted black money and unaccounted cash.

3. Goods and Services Tax (GST): Simplified taxation to limit evasion.

4. Electoral Reforms: Electoral Bonds introduced for political funding regulation.

5. Jan Dhan Yojana: Promotes financial inclusivity to curb welfare leakage.

2.8. Role of Civil Society and Media in Fighting Corruption

1. Civil Society Organizations (CSOs):

   • India Against Corruption (IAC): Movement leading to Lokpal Act.

   • NGOs like Transparency International: Advocacy for accountability.

2. Media and Investigative Journalism:

   • Exposed scandals (e.g., Tehelka stings).

   • Public awareness through diverse media platforms.

3. Public Participation:

   • Citizen activism through RTI applications.

   • Whistleblowers revealing corruption.

2.9. Challenges in Combating Corruption

• Political Interference: Bias affecting investigating agencies.

• Judicial Delays: Prolonged trials impede justice efficacy.

• Lack of Public Will: Societal acceptance of corruption as commonplace.

• Globalized Corruption: International transactions complicate corruption tracing.

2.10. Way Forward: Measures to Reduce Corruption

1. Strengthening Institutions: Increasing anti-corruption agencies' independence.

2. Electoral Reforms: Tightening political funding regulations.

3. Judicial Reforms: Speeding up corruption case adjudications.

4. Technology Use: Expanding e-governance for transparent transactions.

5. Whistleblower Protection: Ensuring informants' safety and confidentiality.

6. Public Awareness/Education: Promoting ethics through civic education.