Corruption, encompassing abuse of power for personal gains, presents a substantial challenge to the development of India. A recent webinar organized by the Lokpal of India focused on ‘Bringing Synergies in Anti-Corruption Strategies’, indicating the ongoing prominence of this issue.
The Impact of Corruption
Corruption has various far-reaching impacts that span numerous sectors in a nation. These impacts may include:
Political Costs
Corruption can erode public trust in political institutions, limit participation in political processes, skew electoral results, and reduce the range of political choices for citizens. It can also undermine the legitimacy of democratic systems.
Economic Costs
Economic inefficiency is a direct result of corruption due to misappropriation of resources for rent-seeking activities, increasing public transaction costs, acting as an unofficial business tax, reducing investment, and compromising fair business competition.
Social Costs
Corruption can distort value systems, placing undue status on occupations with rent-seeking opportunities. This hurts public morale and weakens civil society, making it susceptible to less ethical leaders.
Environmental Costs
Projects that could potentially harm the environment often get funding preference as they offer avenues for diverting public funds into private pockets.
National Security Concerns
Corruption within security agencies can compromise national security through distortion of procurement processes and recruitment systems, facilitating smuggling, and aiding money laundering activities.
Fighting Corruption: Legal Framework
India has instituted several legal frameworks to fight corruption. These include:
Prevention of Corruption Act, 1988
This Act prescribes penalties for public servants involved in corruption and those who abet corruption.
Prevention of Money Laundering Act, 2002
The Act seeks to counter money laundering efforts and prohibits the use of proceeds from criminal activities within India.
Companies Act, 2013
This Act aims to guard against corruption and fraud in the corporate sector. It also establishes the Serious Frauds Investigation Office (SFIO) to deal with white-collar crimes.
Indian Penal Code, 1860
The Indian Penal Code contains provisions that cover bribery and fraud, including criminal breach of trust and cheating.
Foreign Contribution (Regulation) Act, 2010
This Act regulates the acceptance and use of foreign contributions by individuals and corporations.
Establishment of the Lokpal
The Lokpal and Lokayuktas Act, 2013 established the offices of the Lokpal (for the central government) and Lokayuktas (for state governments) as ombudsmen. They are empowered to investigate corruption allegations against public servants.
The Lokpal: Composition and Jurisdiction
The Lokpal is composed of one chairperson and up to eight members, at least half of whom should be from SC/ ST/ OBC/ Minority communities or women.
The jurisdiction of the Lokpal extends to the Prime Minister, Ministers, members of Parliament, and officials of the Central Government.
Way Forward
An important aspect of fighting corruption is strengthening oversight institutions and ensuring access to relevant information. Adequate funding, resources, and independence for anti-corruption authorities are vital. Also crucial is a collective effort among all agencies to eradicate corruption, coupled with a focus on prevention over cure.
