INTRODUCTION

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1. Corruption - Definition

Corruption has been described “as the abuse of public office for private gain.”

Corruption is the most leading problem prevailing in the whole world which is affection
everyone and is there everywhere. It is nothing but a fraud done by a person or a group who is in
power doing injustice to others and being favorite to them who offers them a token of gratitude.
This is done purely for their personal benefit. Gratitude received maybe in the form of Cash or
gifts sometimes. This mostly happens when a Government employee acts in an official capacity
for personal gain.

Corruption happens on various scales. Corruption varieties from minor favours amongst lesser
number of people (petty corruption),to corruption that disturbs the government on a giant scale
(grand corruption), and corruption that is so predominant that it is part of the everyday
arrangement of society, with corruption as one of the signs of organized crime.

Progressively, various indicators and tools are developed which can measure these forms of
corruption with aggregate accuracy.

Petty corruption

Petty corruption happens at a lesser scale and takes place at application end of public facilities
when these bureaucrats meet the people. For example, in many petty places such as registration
workplaces, police stations, RTO and many other private and government segments.

Grand corruption

Grand corruption is that which happens at the top level of government in a way that needs
important inclusion of political, legal and economic systems. Such corruption is usually found in
countries with strict or tyrannical governments but also in those without satisfactory regulating
of corruption.

The government system in many nations is separated into legislative, decision-making and
judiciary branches in an effort to deliver independent facilities that are fewer subject to grand
corruption due to their independence from one another.

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Systemic corruption

Systemic corruption (or pervasive corruption) is the one which is predominantly due to the
weaknesses of an organization or its way of working. It can be compared with individual
officials or agents who are corrupt within the system.

1.1 Corruption in Different Sectors

Government/public sector

This corruption includes corruption of the political process of government agencies such as the
police as well as corruption in procedures of allotting public reserves for contracts, grants, and
hiring.

Some of the types under this are:

 Police Corruption
 Political Corruption
 Judicial Corruption
 Corruption in Education system
 Corruption in Religion

Corporate corruption / Private sector Corruption

These are the crimes committed either by a company ( a commercial entity having a separate
legal personal ), or by individuals stand-in on behalf of a company or other business entity.
Some negative actions by companies may not be criminal. Laws vary amongst jurisdictions. For
example, some allow insider trading.

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Graph: 1.1 Various statistics of corruption involved in public services.

Fig : 1.1 Survey of people affected by corruption in public services.

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IMPACT ON ECONOMIC DEVELOPMENT

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2. Corruption – The Process

The Process of corruption can be easily explained by below diagram on how exactly the
corruption happens and who are the major stakeholders of the Corruption process.

Fig : 2.1 The corruption cycle

The major stakeholders in this process are Business man A, Politician B and Bureaucrat C
where, Business man A funds for the campaign for political party of Politician B in turn
Politician B helps getting a position to Bureaucrat C in public administration and in turn this
Bureaucrat C helps Business man A for winning a public contract for his private gain and
profits.

This is how exactly the corruption cycle works. This entire cycle works in helping each other for
each other’s private gain. The above flow diagram explains how exactly the corruption works in
the society.

In some of the petty corruption where these stake holders doesn’t come in to the situation there
comes 2 stake holders First The Public who needs premium service in exchange of any

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gratitude to be offered and Second any Corrupt officer who’s ready take some gratitude and
provide the premium services to the public.

Mainly corruption happens when there is a shortage of the resources available to the public and
they are in the doubt of getting it. This increases the demand and in turn there is a room for
Corruption to occur.

These stake holders who involve in the corruption are called Corruptor and Corruptee.

Corruptor is the one who give or offer the token of gratitude for special treatment or premium
services for private gain unlawfully and Corruptee is the one who accepts this and provide them
what they need for his private gain unlawfully. This is how the process happens of Corruption in
the state.

2.1 Causes of Corruption

According to a 2017 survey study, the following factors have been attributed as causes of
corruption:

 Higher levels of market and political monopolization

 Small levels of democracy, feeble civil participation and little political transparency

 Greater levels of bureaucracy and inefficient managerial structures

 Gender inequality

 Small degree of integration in the world economy

 Large government size

 Low levels of government decentralization

2.2 Forms of Corruption

These are some of the forms of Corruption in society

• Bribes: payments to public bureaucrats to convince them to do a favour (quicker,

smoother or more favourably).

• Collusion: secret contract between contractors to increase profit and private margin

• Fraud: forgery of records, invoices etc.

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 • Extortion: use of strong-arming or threats. E.g. a payment to secure / protect on-going
service – (collusive fraud where both benefit)

• Favouritism/ Nepotism in allocation of public office to their favourite one

• Embezzlement: Misuse of company or public funds.

2.3 Economic Crime

• Corruption is one of the many parts of a more complex and more comprehensive
criminal phenomenon, which is economic crime.

• Thus, economic crime covers a wide range of offenses, from financial crimes committed
by banks, tax evasion, illicit capital heavens, money laundering, crimes committed by
public officials (like bribery, embezzlement, traffic of influences, etc.) among many
others.

Table : 2.1 Various Economic crimes and its legislation and Enforcement Authorities

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Fig :2.2 Various statistics of Economic Crime in Indian States

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3. Global Scenario

3.1 Transparency International

• A NGO which monitors and broadcasts company and political fraud in international
development.

• It broadcasts an annual Corruption Perceptions Index (CPI), a comparative listing of corruption

worldwide.

• Headquarters is situated in Berlin, Germany but works over more than 70 nation-wide
episodes.

• TI was originated in May 1993 through the initiative of Peter Eigen, a earlier regional director
for the World Bank.

Fig: 3.1 Ranking of various countries through their CPI.

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3.2 The most corrupt ones:

1. Somalia
2. South Sudan
3. Syria
4. Afghanistan
5. Yemen/Sudan (joint)
6. North Korea/Equatorial Guinea/Guinea Bissau/ Libya (joint)
7. Iraq/Venezuela (joint)
8. Angola/Turkmenistan (joint)
9. Eritrea/Chad (joint)
10. DRC/Congo/Cambodia/Tajikistan (joint)

3.3 Highest corruption reported state in India

Fig : 3.2 India’s Corruption Monitor

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This is because there are various organizations which are fighting against corruption here which
includes Lokayukta, local police etc. The rules for corruption are very stringent here and this is a
positive sign for fighting against the corruption.

3.4 Criteria’s which makes the Countries least Corrupted

1. Effective laws
2. Independent Judiciary
3. Effective Enforcement
4. Responsive public service
5. Political Will

These are the main areas where a country must focus on for the better non corruptive state.
Better the Effective laws people fear for committing the crimes. Independent Judiciary and
Enforcement reduces the crime and makes the place better. Political will the backbone of
everything as it’s the one which has all the powers with it when it comes to public policy
making.

Fig: 3.3 Main criteria for a better state.

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4. COST OF CORRUPTION

Corruption is one of the biggest impediments to economic and social development in India. This
is overwhelming response or corporate India in a survey of leading companies by KPMG.

The 5 key areas which we consider for measuring the Economic Development hindrance are:

GDP

Impact of Corruption on India’s GDP growth. According to the survey when asked about the
impacts of corruption then around 68% of the population said if there was no Corruption in India
then we can achieve 9 pointer in India’s GDP.31 % people said that the corruption is the risk to
economic growth and remaining 9 % said that there is no impact of corruption on Economy.
When there is a shortage of money in the main economy and more in Parallel economy then
there is definitely impact on Countries GDP.

Investment

According to the survey in this 51 % of the investors said India will attract lesser overall
investments than its peers owing to corruption. 46 % investors said Indian will attract
investment only in Specifies sectors not in all and 1 % people said that there will be no impact
on investments done. This corruption definitely has impact on investments in Indian
investments.

Capital Markets

According to the survey 40% people said it increases the volatility and instability in stock
markets and 36%people say that it reduces the long term investments in the companies and 26 %
people say that corruption is the main reason for the inflation prices of Stocks.

Business

It attracts that business to the market which has lesser capability. It increases the cost of
operations which in turn decreases the profit and which force Business to provide less quality
products to market. Corruption directly effects on Foreign direct Investments (FDI) as none have
trust and doesn’t invest here.This is how it affects Business and its investments.

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Mergers and Acquisitions

According to the survey 30 % people say that the corrupt environment makes it difficult to find
joint ventures, 37% people say that it directly effects on the selling price of the companies which
ios to be sold in case of mergers and acquisitions.

4.1 Other Economic Impacts

• Hinders development.

• Contributes to the depletion of the budget .

• Distorts markets.

• Hinders local & foreign investment

• Education, Health and Environment

Fig: 4.1 Cost of Corruption

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4.2 WHY INDIAN POLITICAL SYSTEM IS CORRUPT ?

• When generations of Indians have seen nothing but depravity and debasement, how can
we expect righteousness in return?

• People in high office are not innately corrupt; they become so because the system gives
them

i) An elevated sense of their worth

ii) Opportunity

• The whole notion of responsibility in the Indian system is absurd. Responsibility here
means a government can be removed, not that it can be held accountable.

• The system... must empower the opposition to stop governmental actions;

a) To deny funds.
b) To begin investigations.
c) To hold public hearings.
d) To subpoena government officials.

Fig: 4.2 Threats to Indian economy

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IMPACT ON SOCIAL DEVELOPMENT

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5. Corruption : It’s Root

We being at the 21st century are witnessing modern day corruptions but we can find its root dated to
dwapara yuga i.e during the time of
Mahabharata.

In the kingdom of Ekachakra

demon called Bakasura was found
eating h uman beings , cattle’s and
all kind of foods by attacking people
and their houses. People in this
dynasty were tired and couldn’t help
themselves in defending the demon
and they ask the king to help them
out by sending their army . The king
Fig: 5.1 Bakasura trying to eat food from the poor
of that dynasty couldn’t fight
against the demon and came to an agreement with the demon bakasura stating that the kingdom will
provide his meal daily so that the demon would not attack the kingdom . It was decided one house
or family per day would provide the demon the meal which included human lives and cattle’s. The
king had appointed a minister to look after the supply to the demon. He was given the
responsibilities to allot one house per day . In this process the minister was bribed from his relatives
and friends to avoid their turn of providing meal to the demon. As the meal was huge , the cost of
food and meal was not able to bear by the poor and the middle man .The rich and people who
bribed the minister survived but not the common man. If not minister was corrupted , if not the king
was brave enough to fight against the demon the poor would have not suffered. From the times of
documentation this is how not exactly we can say its root dates back to Dwapara yuga .

As centuries passes, many kingdoms collapsed due to corrupt ministers and soldiers. It would have
not been possible for the East India Company to make it British Empire without corrupting the
ministers or office bearers of the many kingdoms of India which turned out to be big barrier to the
nation’s social development.

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6. Social Development

Each and every human being

living in the society has to raise
his standards and improve his
well being and happiness to the
fullest capacity he can achieve.
One community or the society’s
success is directly or indirectly
connected to the every
individual which it contains

Fig : 6.1 Societal Needs

All the aspects of development has to b e focused on every individual which will automatically lead
to social development. All the barriers should be removed such that an individual can live
confidently raising his dignity targeting his goal. As the famous saying goes “born poor is not your
mistake but dying poor is your mistake”, everyone should accept that people living in poverty can
change their status and they should prove they will not be poor all the time. Social development is
all about helping the needed to achieve their goals moving forward on their track to self satisfaction.

Graph : 6.1 Growth has slowed down

Fig : India’s
6.2 India’s
inclusive
inclusive
growth
growth
performance
performance
even as investments remain sluggish

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7. Effects of Corruption on Society :

Fig : 7.1 Cartoon depicting the present corruption scenerio

Poor Quality of Services :

When a society is full of corruption , there is no chance of expecting better quality of service. If you
need a better quality you should pay more than what others pay. This applies to services in city
corporation offices, electricity, Public distribution system, relief funds etc. When a person practices
medicine in top college and after completing the course he starts treating his patience by providing
not that good quality health service. If a candidate who doesn’t have the ability to get a seat in
medical college will purchase it and become a doctor later on even though he is not competent.

Improper Justice :

When a serious crime is committed in the society, judiciary system decides the punishment of the
culprit. When that system is corrupted, justice is not even and the common man or the victims
might suffer. When the evidence is less benefit of doubt is given to the culprit or evidence can be
manipulated. The investigators i.e. the police would be corrupted and the investigation process is
delayed which leads to criminal roam around freely and one day he will become old and he will
expire without the proper justice system. “justice delayed is justice denied”.

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Increase in Unemployment :

Any institute or organization gets the permission from the regulatory bodies when they show proper
infrastructure and sufficient man power. These organizations after obtaining permissions, they do
not follow rules and recruit less man power as compared to actual requirement. This gives them less
cost. In spite of vacancy they do not recruit people. When the inspection team visits the organisation
they are bribed such that the issue is not disclosed. This creates unemployment. Also the eligible
candidate will not get the job. There is a high chance of unemployment during the process of
recruitment. The eligible candidates are neglected in front of the person who bribes the recruiting
officer.

Health Issues :

Corruption also brings out health problems in the society. When the Government officials are
corrupted they do not care about common man’s health . They are least bothered about the quality
of water, food, milk, air they get. The quality provided is very low due to the corruption between
contractors and officials. When the hospitals and restaurants doesn’t follow standard methods and
hygiene policies they go for bribing medical inspectors or the hygiene inspectors. People who takes
services here are affected much.

Destruction of The Nature :

Many manufacturing industries in the world emit lot of dangerous gases and liquids. Only few
industries take care in controlling the pollutants. Whereas majority of the industries they do not
follow proper methods of disposal and updated technologies resulting in high pollutant output.
Harmful pollutant enters earth’s atmosphere and water bodies which in turn affecting the
environment. Global warming is the biggest effect. When the regulatory bodies are corrupted they
do not take proper actions against these industries.

Road Accidents:

Majority of the population goes for the driving license through brokers. These brokers are in touch
with the license issuing officers. License is issued even without any kind of tests which leads to
accidents on roads resulting in deaths.

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No Chances of Innovation:

When the scholars have made enormous research , they need funds to continue with the research.
Government provide huge amount of funding to eligible scholars to conduct experiments and
research. The investigators who approves the release of funds are bribed and funds do not reach the
efficient and eligible scholars. It is approved to the people who gives them bribe. This leads to no
decrease in innovations and improvements. The effort and hard work put up on the research will go
in vain.

Less Chances of Foreign Investment:

There will be lot of companies who are willing to invest lot of money into the country. This will
create job opportunities and also development in nation’s economy but when the government is
corrupted these foreign bodies will not take step in investing in the country which is more
corrupted.

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8. Graphs and Tables :

Table : 8.2 Households experienced

Table : 8.1 Interacted with public services corruption in Public service (in%)
during last one year (in%)

We can see from the table that people have interacted highest in banking services and next with
PDS and Health/hospital services. Where as corruption is more in police service followed by
land/housing and judicial services. The reason why banking in spite of more interactions having less
corruption rate is due to the use of effective technology.

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 Graph: 8.1 Percentage perceived ‘increase’ in corruption-by service

Graph: 8.2 Percentage perceived ‘increase’ in corruption in public services-2005 vs 2017

Graph: 8.3 Percentage experienced corruption in public services-2005 vs 2017

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Graph : 8.4 Households Experienced Corruption in public service- A comparative
picture 2005-17(households in %)

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Table: 8.3 House holds experienced corruption in public service

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Table: 8.4 Main reason for which bribe paid by house holds

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9. Famous Scams in The Country:

Corruption is found in every type of service and almost all have been a part of corruption. By taking
bribe or by giving bribe. The issue comes to the limelight when there is a huge amount and big
people involved in the corruption process. Those issues are called as scams.

Few scams which took an eye of media are as follows

• 2G spectrum

• Common wealth games 2010

• Union Carbide

• Punjab National bank

• Indian coal allocation

• Bellary mining

• Endosulfan (kerala )

• Bofors

Apart from political scams there are scams related to Sports too :

The organising of big events such as Olympics , FIFA world cup and other major tournaments
we can see people are corrupted in organising the events. Also many death cases while constructing
those infrastructure are hidden which is again due to the corrupt officers.

When it comes to cricket the rate of bribing players and fixing the matches are high.Pakistan’s
sulman butt Mohammad Asif and Mohammad Amir were caught in spot fixing scandal. South
Africa’s cronje was banned for life. Two IPL teams were banned for two years in match fixing
scandal.

Indian sports saw major corruption scandal when it organised Commonwealth games 2010.

Then director of common wealth games Suresh Kalmadi was caught by the CBI when it was
found that construction and poor infrastructure was due to the corruption.

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10. India Against Corruption :

India has fought against corruption many times by the raise of eminent leaders like Anna Hazare.

In 2011 streets of India was filled with youngsters screaming slogans “No to Corruption”. The
moment was lead by Anna Hazare. In Karnataka there were two prominent lokayukta’s
Chief Justice Venkatachala and Chief Justice Santhosh Hegde who fought prominently against the
corruption. Country needs leaders like them to abolish corruption.

11. Right To Information Act :

To abolish corruption and to build a barrier to it

government of India came up with a rule called Right To
Information Act. To bring out the transparency and
accountability in the working of the government which is
corrupted and to empower people the RTI was brought.

RTI rule says If any citizen asks any information

from the government officials , officers should
provide them the information without delaying it.
If not given or delayed the citizen can complain it
to the higher authority and can get the
information. The main reason behind introducing
this act was to ensure a channel for the citizens
who needed or searched information. This was
introduced by the ministry of Personnel,Public
Grievances and pensions.

Table : 11.1 Heard about RTI Act (%)

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12. Role of Technology in Stopping Corruption :

Technology plays an important role in abolishing the corruption. This can be explained using few
examples.

1) Earlier to obtain election card and ration card people use to contact a broker and by
submitting fake documents people were getting services done. But later with inclusion of
Information systems into the service , anyone can get the job done by obtaining those
services online.
2) Driving license and even passports can be applied online which will eliminate the broker
which in turn decreases the corruption rate.
3) Railway booking system was corrupted earlier when there was no online booking of tickets.
Ticket issuer was taking tickets booking tickets for himself first and then to the public. But
later on with the introduction of online booking facility, ticket booking is done online.
4) Digitalising the payments from real cash would get the real accountability in real time.

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13. Conclusion :

“Recall the face of the poorest and the weakest person whom you may have seen ,and ask youself if
the step you contemplate is going to be of any use to him . Will it restore him a control over his own
life and destiny” – Mahatma Gandhi , june 1921

Corruption is like a virus , it spreads soon and large so that removal is very difficult. But the proper
government policies , rules and regulations can make it happen. Citizen should start thinking about
avoiding corruption and should educate others not to encourage corruption. The change has to start
within ourselves. Use of RTI everywhere and by everyone can stop it. Technology is the important
factor in avoiding corruption.

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REFERENCES

1. https.eatresponsibly.eu

2. www.vaccummania.com>causesoffoodwastage

3. https://en.m.wikipedia.org>wiki>foodwastage

4. www.fao.org>keyfindings

5. thecsrjournal.in>food-wastage-in-india

6. https://olioex.com>foodwastage>the-problems

7.https://www.weforum.org/agenda/2016/10/india-creates-first-smart-village/

8.https://www.naija.ng/1105454-effect-corruption-nigeria.html#1105454

9. http://cmsindia.org/sites/default/files/Monograph_ICS_2017.pdf

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