Indian economy’s stupendous performance in the second quarter of 2009 despite economic turmoil worldwide has turned attention to the issue of sustaining or even improving the growth rate.
While improving infrastructure, providing employment, uplifting of rural areas and reforms in various sectors are on the cards, eradicating corruption is one move that can improve India’s performance with the existing setup.
According to this year’s corruption perception index (CPI), India is ranked 84th among the 180 surveyed. This is no better from the 85th position last year, but thankfully no worse.
Corruption manifests itself in all areas of economy, providing roadblocks in developmental activities and hindering growth. Infrastructure, its inadequacy touted as the number one impediment to country’s growth, is also the worst affected by corruption. Billions go into paying bribes, which either cause overspending or lead to inferior quality structures.
Poverty, another bane of modern India, is a fellow sufferer with the bulk of earmarked funds going down the drain.
Being both rising economies, comparing India with China will be helpful in finding a way out of this mess. While corruption is rampant in both countries, method of tackling is way different. India has the advantage of being a more open society with influential social activists and powerful media. India’s legal system is also conducive to exposing corruption.
The corporate world and the public would welcome a corrupt-free India, but this necessitates a cultural change. While the economic changes are comparatively easier to achieve, cultural changes, though welcomed by the majority, is more difficult and slower to bring about, mostly due to the backstage activities of its beneficiaries.
Last decade saw some positive steps in eradicating corruption, but there is much to be done. Or else, corruption may end up devouring the hard-earned economic growth.
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