Political Economy & Corruption

It is argued that without making deep-going and radical changes to India’s political economy it will not be possible to prevent and eliminate corruption. Do you agree?

Corruption in the neo-capitalist and liberalisation era is higher than what it was reported quarter a century ago, both in magnitude and reach in polity and society. It is a result of governance failure, increase in bureaucracy, weak judiciary and socio-cultural structures that are reluctant to undergo economic restructuring.

Reasons for deep-rooted corruption in India:
1) The colonial impact of corruption was inherited by India upon freedom.
2) The liberalisation gave states more opportunity to let private sector find access to scarce resources.

3) The effects of the licence raj have not yet left the country.

4) Being vast, the implementation of various policies to bring down corruption is not much effective.

To eliminate corruption, the following changes in political economy may come useful:

  • Forming anti-corruption bodies such as Jan Lokpal to investigate corruption cases independently.

- Replacing distorted subsidies to targeted cash transfers so that the middlemen can be removed. Such as LPG subsidy transfers to bank account.

- Creating transparency in government spending and allocating of public resources so that they are used in public interest and hence help in improving the GDP.

- Eliminating needless state regulations for doing business which lead to bribe and corruption.

- Making use of smart technology to reduce illicit transactions and increase transparency.

Question Source: http://www.insightsonindia.com/2017/07/10/3-argued-without-making-deep-going-radical-changes-indias-political-economy-will-not-possible-prevent-eliminate-corruption-agree-substantiate/