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Rampant corruption- Over Rs. 5.6 lakh crore illegal outflows-Report |
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Even as India continued to register one of the highest growth rates post-independence, rampant corruption resulted in an estimated illicit outflow of $125 billion between 2000 and 2008, according to a report to be released by the Washington-based Global Financial Integrity later this year.
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“Much of the funds flowing out are generated at home within India and then sent illegally abroad. So the growth of corruption and India’s underground economy contribute significantly to illicit financial flows from the country,” said Mr Karly Curcio, a junior economist at the Global Financial Integrity in a blog posted on its website.
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“India’s economic boom continues with an average growth rate of over eight per cent between 2004 and 2009 by GFI calculations,” it said.
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“As the money flows, however, the poor continue to stay poor. Corruption is rampant in India as it is in almost all developing countries. Both corrupt political and corporate officers manage to siphon off funds — intended to aid the people of India — off to political and private sector elite. |
Recent efforts in India to challenge this corrupt affront on humanity have been met with severe violence,” the blog said.
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As India develops economically and builds better infrastructure, one would think that all Indian citizens would see an increased standard of living and that the income inequality levels would fall, he noted.
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“However, the gini coefficient, which measures income inequality, has actually increased over the time period measured, 2000-2005, from 0.32 to 0.37 on a scale of 0 to 1, with 1 being the highest income inequality,” the author said. |
“We see in India — as in other currently developing countries — that as the economy grows, so do illicit flows. This positive correlation exhibits the increased incentives to conduct illicit flows, mostly because more money is flowing within the system to steal away and constant greed is tapping into that pool,” Mr Curcio said. |
Noting that India ranks 84 out of 180 countries in Transparency International’s 2009 Corruption Perceptions Index, the author said as corruption continues to plague both the country and its ability to develop free and fair institutions to monitor and cha rge corrupt officials, the majority of India’s economic growth will never make it to the people of India who desperately need it the most. — PTI /BL 141910 |
| The slippery slope of corruption |
The new wealth and prosperity are, in fact, feeding a frenzy of corruption that is quickly causing the decay of societal morals and ethics. Even the national honour is up for auction in hosting the Commonwealth Games. A nation that aspires to be a superpower cannot take pride in its abysmal 84th place in the corruption perception index as measured by Transparency International. |
Bribing is now considered an investment by many who seek government jobs. This investment, they assume, gives them a moral right to expect a return through more corruption. For citizens and businesses, it is faster and more efficient to engage in immoral and illegal activities in their interactions with government. Those who can, or are willing to, engage in such activities are likely to have fewer headaches and greater rewards. |
If corruption has to be controlled, there needs to be greater transparency, accountability, enforcement, and self-governance. All these are difficult to achieve, and require experimentation and different thinking. The slippery slope of corruption has a powerful downdraft where the weak and the honest suffer the most. The Hindu 020910 |
| Krsr/Article/150910 |
