Essay on India Corruption

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BSP2005 Research Essay- Stage 5

Corruption in India- Causes, Impact and the Fight Against Corruption Despite the cohabitation of corruption and exceptional economic growth in India, researchers argue that that there is potential for further growth that is held back by the institutions of administration and linked corruption (Heston & Kumar, 2008). The roots of corruption can be traced back to various systems set up by the British (Quah, 2008). In this paper, transactional corruption is discussed, where money changes hands for the services rendered, or the expectation of the same. We should note that there is a high degree of variation in terms of the level of corruption across India caused by factors such as the degree of wealth, cultural context (Widmalm, 2005), education and fiscal decentralization (Charron, 2010). The government’s monopoly in the supply of public goods and services has created several avenues for corruption (Quah, 2008; Paul, 1998; Wade, 1985). This has led to a reallocation of resources from efficient sectors to sectors that are good avenues for rent collection (Sondhi, 2000; Roy, 1996). An experiment on obtaining drivers’ license in India revealed that many unqualified drivers obtained licenses faster than more qualified drivers due to the presence of agents in the license obtaining process (Bertrand, Djankov, Hanna & Mullainathan, 2007). Although this may not be the ideal example that displays inefficient allocation of resources, this can be considered a reliable representation of the overall scenario. Corruption also exists because of strong influence of personalities not holding formal positions (Tummala, 2002). This creates a relative lack of accountability of the service providers to the citizens. When these top-down accountabilities are weak, horizontal accountability...
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