Way back in 200 B.C., Kautilya meticulously described
40 different kinds of corruption in his Arthashastra. He has aptly
commented: "Just as it is impossible not to taste honey or poison when
it is at the tip of the tongue, so it is impossible for a government
servant not to eat up a bit of revenue.
And just as it cannot be found out whether a fish
swimming through water drinks or not so also government servants cannot
be found out while taking money for themselves."
What exactly is corruption? Corruption is defined as
moral depravity and influencing through bribery. Essentially,
corruption is the abuse of trust in the interest of private gain.
And it can be divided into five broad types:
transactive, extortive, defensive, investive and nepotistic. The
transactive type refers to the mutual agreement between donor and
recipient to the advantage of, and actively pursued by, both parties.
This normally involves business man and government.
The extortive type is the kind where the donor is compelled to bribe in
order to avoid harm being inflicted upon his person or his interest.
Defensive corruption is the behaviour of the victim
of extortive corruption. His corruption is in self-defense. Investive
corruption involves the offer of goods or services without any direct
link to a particular favour but in anticipation of future occasions
when the favour will be required. And nepotistic corruption, or
nepotism, is the unjustified appointment of relatives or friends to
public office, or according them favoured treatment, in pecuniary or
other forms, violating the norms and the rules of the organisation.
The constituent elements of corruption are cheating
and stealing. Where corruption takes the extortive form, it is stealing
by force through compulsion of the victim. Where it concerns bribing a
functionary, the latter is involved in theft. No society or culture
condones stealing and cheating, actually all cultures condemn these
activities.
Take India. As early as 1000 BC, the laws of Manu
laid down those corrupt officials who accept bribes from the villagers
are to be banished and have their property seized. Condemnation of
bribery, of greed, of misappropriation of property has accompanied
Hindu thought throughout the ages and yet corruption is deep-rooted in
India today.
It is not difficult to locate the causes of
corruption. Corruption breeds at the top and then gradually filters
down to the lower levels. Gone are the days when people who joined
politics were imbued with the spirit of serving the nation. Those who
plunged themselves into the fight for freedom knew that there were only
sacrifices to be made, no return was expected.
So only the selfless people came forward. But the
modern politicians are of entirely different mould. They are not
motivated by any lofty ideals. They win elections at a huge personal
cost and then try to make the best of the opportunity they get.
Powerful business magnates who are forced to give huge donations to
political parties indulge in corrupt practices not only to make up
their losses but also to consolidate their gains.
When people in power indulge in corruption so
unabashedly, the common man gets a kind of sanction. Ironically,
instead of fighting against the menace of corruption, our political
leaders declare it a worldwide phenomenon and accept it as something
inevitable.
India enjoys a none-too-credible position in the
league of corrupt rations. We are in an age where corruption has become
a national menace. Transparency international, in its report for 1999,
ranks India at 73 out of -9 countries in its Corruption Perception
Index. Last year's Human Development Report published by the Mahbub ul
Haque Centre in Islamabad says that if the level of corruption in India
can be brought down to that of the Scandinavian countries, foreign
direct investment will go up by 1.5% of GDP.
The main point made by the Human Development Report
is about: his special nature of corruption in India. Corruption in our
country has: our key characteristics that make it far more damaging
than corruption m other parts of the world.
First, corruption in India occurs upstream, not
downstream. Corruption at the top distorts fundamental decisions about
development priorities, policies and projects. In industrial countries,
these core decisions are taken through transparent competition and on
merit, even though petty corruption may occur downstream.
Second, corruption money in India has wings, not
wheels. Most of the corrupt gains made in the region are immediately
smuggled out to safe made in the region are immediately smuggled out to
safe havens abroad. While there is some capital flight in other
countries as well, a greater proportion of corruption money is actually
ploughed back into domestic production and investment. In other words,
it is more likely that corruption money is used to finance business
than to fill foreign accounts.
Third, corruption in India occurs with 345 million
people in poverty. While corruption in rich, rapidly growing countries
may be tolerable though reprehensible, in poverty stricken South Asia,
it is appalling that the majority of the population cannot meet their
basic needs while a few make fortunes through corruption.
This corruption in South Asia does not lead simply to
cabinet portfolio shifts or newspaper headlines, but to massive human
deprivation and even more extreme income inequalities. Combating
corruption in the region is not just about punishing corrupt
politicians and bureaucrats but also saving human lives.
Info tech can be a prime weapon against corruption.
Information technology is making its presence felt in India. Therefore,
India is not only a corrupt country; it is also a country which is
hoping to emerge as an Info tech superpower or a software superpower.
The interesting point for consideration therefore is that can Info tech
be used to help India become economic superpowers by checking
corruption?
To understand this, we must first understand the
dynamics of corruption and the dynamics of Info tech. So far as the
dynamics of corruption are concerned, it is obvious that corruption
flourishes in our country because of the following five reasons:
(i) Scarcity of goods and services
(ii) Lack of transparency
(iii) Complicated rules and red tape, which encourage corruption although 'speed' money.
(iv) Legal cushions safety created for the corrupt under the healthy assumption that everybody is innocent till proved guilty.
(v)Tribalism or biradari between the corrupt.
It is therefore logical that if we can tackle each of
the five cause of corruption, we should be able to check the malaise
to that extent. Information technology can help us to tackle these
causes of corruption.
Let us look at the features of information
technology. The first of these is its capacity for processing
information very fast to borrow Bill Gates's expression, business at
the speed of though! In fact, we know that delay in decision-making is
the breeding ground for corruption. Information technology can help
speed up the processes to assist in decision-making.
Computerisation can check bank fraud too. If specimen
signatures are fed in the computer, it will facilitate easy
verification and provide security against forgery. Stop payment
instructions received by bankers can alert the teller whenever a lost
cheque is presented.
The manipulation of books by unscrupulous staff can
be prevented or detected because computerisation would enable
tallying/balancing of books on a daily basis. The reconciliation of
transactions relating a draft issued and paid through a computerised
system would help the early detection of fraudulent payments.
Fraud relating to local clearing operation may be
minimised through the prompt reconciliation of the number and amount of
cheques through a computerised banking system.
Attempts by unscrupulous employees to perpetrate
frauds by raising fake credits through inter-branch accounts may be
thwarted through a computerised system for reconciliation of entries
between originating branches and responding branches.
With the introduction of passbook writing machines,
fraud relating to the misappropriation of cash receipts by cash
department staff can be prevented or detected early.
According to credit bank's guidelines, electronic
clearance systems have been introduced at the metros for corporate
clients. But the lack of proper reconciliation on a daily basis has
facilitated the perpetration of massive fraud. Again, software that
enables daily reconciliation can be used to detect fraud early.
As regards advances in credit-related fraud, it would
help if banks computerised the database of parties enjoying credit
facilities from different banks to avoid double financing. A database
on fraudsters and willful defaulters with photographs will help the
banking system protect itself.
The Central Vigilance Commissioner, Mr. N. Vittal has
noted that it is possible to go on cheating banks one after the other
because they did not have a system of communicating information about
willful defaulters among themselves. The CVC therefore directed in
November 1999 that ill cases of willful default of Rs. 25 lakh and
above be reported to the RBI and when they occur or are detected.
While there are client confidentiality restrictions
under Article 14 of die Constitution, it would not be out of place to
suggest that the public has a right to know the identity of the willful
defaulters who are cheating nationalised banks. This will also bring
in the necessary social shame and pressure on the unscrupulous, corrupt
willful defaulters who are today responsible for the formidable
non-performing assets to the tune of Rs. 45,000 crores in our banking
system.
So speedy transactions can reduce the scope for
corruption. The second cause of corruption is lack of transparency—a
customer does not get to know what his rights are and how his case is
being handled. It is a healthy sign that the Central government is
thinking of coming up with a Freedom of Information Act. Various State
governments are also talking about setting up information kiosks.
In Andhra Pradesh, Chief Minister, Mr. Chandrababu
Naidu aims to allow citizens to conduct transactions with the
government through computers. The whole State is being networked with
Andhra Pradesh Wide Area Network so that payment of taxes and obtaining
of certificates and even issue of ration cards become faster and free
of corruption.
Of course, public servants will resist (as they did
in Andhra Pradesh early last year) any attempt to curtail their power
to make money. For example, computerisation of the Registration
Department for property transfer has cut transaction time to less than
an hour, which earlier used to take two weeks or more.
Info tech also ensures that the files are never lost,
thus rendering the paper trial inerasable. This can be done by
scanning and storing of confidential files. Of course, this will also
means that cyber laws have to come into effect.
Database need to be computerised. The National Crime
Records Bureau, for example has got data about corrupt elements and
their modus operandi. By using computerised search options rather than
shifting the database manually, the police can help to bring the
corrupt to book more effectively and speedily.
These are some ideas about how information technology
can help to fight corruption. What India needs is a greater display of
imagination are locating the causes for corruption and seeing how, in
each area, Info tech can help
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