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Corruption in India

Corruption in India

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Published by Amit Singh

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Published by: Amit Singh on Apr 29, 2011
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11/19/2012

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Term Paper Business EnvironmentMGT 511
“Corruption in India”
Submitted To: Submitted By:Miss Kanika Jhamb Amit SinghRoll No.: 32Section: A17B1
 
INTRODUCTION
It is a no brainer that Corruption in India is at its rampant best. There is not one section of thesociety that is spared from it. Corruption in the form of bribery takes the cake and given that it begins at the grass root level makes it even more difficult to monitor and control. The Corruptionand Bribery Report published at track. In earlier, gives a detailed breakdown of the scale of the bribes and the reasons why bribes are given.The striking though well known findings of the report points out that close to half the bribes arerequested by the Government Officials both at the state and national level. The same government personnel who are entrusted with the development of the nation are filling their own pockets. Nowonder then the nation’s politicians are the most corrupt lot.However, it was only for the petty money minded officials filling their own pockets, theenormity of the bribery might be restricted to a certain level. According to Management GuruC.K.Prahalad , the cost of corruption to the country might as well exceed Rs. 250,000 crores.The total spending for the 2009 Lok Sabha elections is pegged at a whopping Rs. 10,000 crore.The breakup of this spending throws up some interesting insights too.* Rs 1,300 crore (Rs 13 billion) by the Election Commission* Rs 700 crore (Rs 7 billion) by the Centre and state governments* Rs 8,000 crore (Rs 80 billion) were spent by political parties and individual candidates8000 crore spent by political parties and individual candidates. Where do they get hold of thiskind of money to spend. Again, it comes as a no brainer that it is hugely attributed to the PrivateFunding that political parties attract from big pocket industrialists. The reasons why privatespending of this scale happens again is rather simple Favourtism. It is a well known fact thatgovernment support is crucial for industries small and large. One favourable swing in a hugetender or a favorable policy, and all the benefits can be reaped.Given the risky nature of the investments in elections, politicians as venture capitalists, we canassume, will not settle for less than a 10-fold return.There can be infrastructure and operational costs, but they can never amount to such alarmingnumbers. Now, when the government is well aware of crores of amount spent on election campaigns and product like advertisements with politicians selling themselves door to door, why cantregulations be implemented to stop all this waste of money. However, accountability issomething that leaves a lot for asking and barring which none of the measures to put a stop tocorruption can reap rewards.
 
It is embarrassing that billions of dollars are being spent on electing leaders who do nothingmore than succumbing to taking bribes after getting elected.Political corruption and bureaucratic corruption in India are major concerns. A 2005 study done by Transparency International in India found that more than 15% of the people in India hadfirsthand experience of paying bribe or peddling influence to get any type of job done in a publicoffice. Taxes and bribes are a daily life fact, common between state borders; TransparencyInternational estimates that truckers pay annually US$5 billion in bribes. For 2010, India wasranked 87th of 178 countries in Transparency International's Corruption Perceptions Index. As of 2010, India is amongst the most corrupt governments in the world, though one of the leastcorrupt in South Asia. India needs to deal with the malice of corruption and improve governancein Asia's third-largest economy, Prime Minister Manmohan Singh said on 18 March 2011.Criminalization of Indian politics is a serious problem. In July 2008 The Washington Postreported that nearly a fourth of the 540 Indian Parliament members faced criminal charges,"including human trafficking, immigration rackets, embezzlement, rape and even murder". Aninternational watchdog conducted a study on the illicit flight of money from India, perhaps thefirst ever attempt at shedding light on a subject steeped in secrecy, concludes that India has beendrained of $462 billion (over Rs 20 lakh crore) between 1948 and 2008. The amount is nearly40% of India's annual gross domestic product.India tops the list for black money in the entire world with almost US$1456 billion in Swiss banks (USD 1.4 trillion approximately) in the form of black money. According to the data provided by the Swiss Banking Association Report (2006), India has more black money than therest of the world combined.[12][13] Indian Swiss bank account assets are worth 13 times thecountry’s national debt.[14] Indian black money is sometimes physically transferred abroad. TheCEO of a Mumbai-based equity firm recently told journalists that the money is flown abroad in"special flights" out of Mumbai and Delhi airports to Zurich. Indeed Indians would be the largestdepositors of illegal money in Swiss banks, according to sources in the banking industry. Theestimated average amount stashed away annually from India during 2002-2006 is $27.3 billionUS dollars.Independent reports have recently calculated India's traditionally ruling family's (Gandhi's)financial net worth to be anywhere between $9.41 billion (Rs 42,345 crore) to $18.66 billion (Rs83,900 crore), most of it in the form of illegal monies. Harvard scholar Yevgenia Albats citedKGB correspondence about payments to Rajiv Gandhi and his family, which had been arranged by Viktor Chebrikov, which shows that KGB chief Viktor Chebrikov sought in writing an"authorization to make payments in US dollars to the family members of Rajiv Gandhi, namelySonia Gandhi, Rahul Gandhi and Paola Maino, mother of Sonia Gandhi" from the CPSU inDecember 1985. “The recent scams involving unimaginably big amounts of money, such as the2G spectrum scam, are well known. It is estimated that more than trillion dollars are stashedaway in foreign havens, while 80 percent of Indians earn less than 2$ per day and every second

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