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Corruption FoE Project.

This document summarizes a student project on the topic of corruption. It includes an introduction that defines corruption and outlines some of its negative consequences, such as inhibiting investment and distorting government project selection. It also discusses how corruption affects income distribution and labor markets. The document reviews India's Prevention of Corruption Act and concludes that while laws have been enacted to address corruption, individuals must also work to address it at the local level.

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Aryan Raj
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92 views8 pages

Corruption FoE Project.

This document summarizes a student project on the topic of corruption. It includes an introduction that defines corruption and outlines some of its negative consequences, such as inhibiting investment and distorting government project selection. It also discusses how corruption affects income distribution and labor markets. The document reviews India's Prevention of Corruption Act and concludes that while laws have been enacted to address corruption, individuals must also work to address it at the local level.

Uploaded by

Aryan Raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Corruption

Submitted by

Aryan raj

Course-BA.LLB Division-D Batch-2018-23

Of

Symbiosis Law School, Noida

Symbiosis International University, Pune

In

August ,2018

Under the guidance of


Dr. Garima Yadav

Assistant Professor
CERTIFICATE

The project entitled “Corruption” submitted to the Symbiosis Law


school, Noida for Foundation of Ethics as part of Internal assessment
is based on my original work carried out under the guidance of Dr.
Garima Yadav from July, 2018 to August, 2018. The research has
not been submitted anywhere for award of a degree.

The material borrowed from other sources and incorporated in the


thesis has been duly acknowledged.

I understand that I myself could be held responsible and accountable


for plagiarism , if any, detected later on.

Signature of Candidate:

Date:
Acknowledgement

Firstly I would like to thank Symbiosis Law School Noida


(Constituent of Symbiosis International University, Pune),
who gave me this opportunity under the guidance of Prof.
(Dr.) Garima Yadav to create a project that enhanced my
knowledge of Foundation of Ethics to much higher extent. I
am grateful to Prof.(Dr.) C.J. Rawandale and Prof.(Dr.)
Garima Yadav who guided me in successful completion of
this project. I would like to thank my parents and my friends
who supported and helped in finalizing this project within the
limited time frame.
Sr No. Title
1. Introduction
2. Literature Review
3. Discussion
2. Conclusion

Introduction
Corruption is an essential part of what we now call as governance. It is
extremely inimical to growth and development of economy. It leads to
misuse of resources, exploitation of labor markets, discourages
investments, and alters income distribution. The myth that corruption
helps markets by “greasing the wheels of commerce” has been proven
false. While it is true that a bribe may speed up one transaction, it
creates incentives for more and higher bribes in previously bribe-free
activities. In a remarkable study of bribery, Robert Wade (1985)
shows that once bribes are introduced, bureaucracies redirect their
attention from providing services to the public to maximizing
bureaucrats’ illicit incomes.

The most damaging consequence of corruption may be in how it


inhibits investment in the economy. Research clearly establishes that
countries with high corruption have lower levels of investment and
economic growth (World Bank 2001). Corruption, which usually exists
in an environment of poor overall governance, makes it difficult for
entrepreneurs to invest by increasing the cost of starting a business
venture. After investments have been made, corruption creates
uncertainty for entrepreneurs because the public officials have an
option to extract bribes from the venture should it prove profitable.
This option increases entrepreneurs’ risks and lowers their returns.

Corruption also distorts the selection of public-sector projects. Small


maintenance projects are more effective in terms of their output, but
corrupt officials do not like to spend money on smaller projects
because they may be carried out by a larger number of contractors,
making it more difficult to extract bribes. Thus, corruption biases
investment expenditures from high-output to low-output projects.
Construction of “roads that go nowhere,” “bridges that no one
crosses,” and unused shells of school buildings that abound in the
developing world may have been motivated by bribes, not the needs of
the society. In addition, if measured by the extent of bribes as a
percent of revenue of a firm, corruption affects small firms more than
big ones. Because innovative activities in most economies tend to be
taken up by small entrepreneurs, corruption stifles an important
source of economic growth. Corruption also discriminates against
foreign direct investment because dealing with corrupt officials
requires familiarity, which is an advantage that domestic firms may
possess.

Corruption affects the labor market by distorting returns for various


activities. It distorts the allocation of talent between power-seeking
activities and other productive activities in an economy. Furthermore,
as noted earlier, corruption discourages the allocation of talent to
entrepreneurial activities by lowering rewards and increasing risks.

Corruption does not affect all members of a society equally. The poor
suffer relatively more from corruption in two ways. First, bribe
payments may represent a higher percentage of their income than
similar payments by the rich. In this sense, corruption acts as a
regressive tax—lower-income households carry a larger burden than
higher-income ones. Second, corruption causes the delivery of public
services, for example, health care and education, to deteriorate. Such
a deterioration affects the poor more than the rich first, because they
may have to pay a bribe to receive the services and second, because
they depend more on such services. Corruption may also allow the rich
to pay fewer taxes than required by law. This lowers the revenues of
the state, further deteriorating the ability of the state to provide
services for the poor. Studies confirm that corruption causes income
distribution to worsen.

Prevention of Corruption Act, 1998


Written by: Deboshree Banerji - Student from ILS Law College,
Pune (LL.B. III).

"If we cannot make India corruption-free, then the vision of making


the nation develop by 2020 would remain as a dream." - Dr.
A.P.J.Abdul Kalam.

Corruption is one of the greatest barriers in India’s progression


towards being a developed country. Despite having a very strong
social and cultural structure of our country corruption has affected us
badly and left our society defenseless against various negative social
elements.

According to Shri N.Vittal, Former Chief Vigilance Commissioner, the


first stage in the dynamics of the rule of law is the framing of effective
rules and laws, which are equipped to hinder the ever-rising escalation
of the corruption graph. It is in this context that the Prevention of
Corruption Act, 1988 becomes highly significant.

The Prevention of Corruption Act, 1988 (henceforth referred to as PCA)


came into force on 9th September, 1988. it incorporated the
Prevention of Corruption Act, 1947, the Criminal Law Amendment Act,
1952, and sec. 161 to 165-A of the Indian Penal Code with
modifications, enlarged the scope of the definition of the expression
'Public Servant' and amended the Criminal Law Amendment
Ordinanc,k1944. The PCA, 1988l, thereby widened the coverage,
strengthened the provisions and made them more effective.

It’s a helpful article to learn about the steps taken by our authorities to
eradicate corruption from our culture.

Discussion
Corruption being the most common social evil prevailing in our country
has affected every aspect and group of people in the country. From
shopkeepers to businessmen or banks to parliament offices no
authority can be omitted from being corrupt in present scenario.
Although the most affected are the common people of the society they
are in a situation where they have to huge amount of taxes moreover
they fall in trap of corrupt officers whom they have to bribe to get their
work done. Some strict actions must be taken by the authorities to
help their citizens.

Conclusion
Corruption can be considered as a result of poverty and bad
governance. Though we have appropriate laws in the country to fight
corruption they are made ineffective. Corruption is still the biggest
barrier in between development and the poor people of our nation, it
turns all the benefits of resources in our country towards the
politicians and officials who are involved in corruption rather than
those poor and needy people, hence it can be considered as anti-poor
and anti-development. The Indian judicial system has taken various
steps to fight corruption but is still facing problems to remove it from
our system.

However we may try to get rid of corruption by making new laws and
passing bills we as whole country will only succeed if we start working
from the bottom. We must not neglect even a single incident of
corruption however normal it may appear. Instead of blaming on
others we should do all possible work from the scrap level to fight
against corruption. We always feel that only government is responsible
for corruption but rather we should learn to identify the reason for
corruption at our levels and try to fix it, as the government alone
cannot stop corruption.

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