To truly understand any economy, we need to know both that is recorded and the one that is hidden. The impact of corruption in an economy has rarely been recognized to its true potential. In the recent survey conducted by Transparency International India and the Centre for Media Studies, Delhi the total monetary value of petty corruption in India is estimated at Rs. 21,088 crore (approx. USD 4.734 billion). This study has used perception and actual experience of paying bribes as the key parameters.
The study, 'Indian Corruption Study 2005 to Improve Governance', released on Thursday, covered 11 services — Police (Crime and Traffic), Subordinate Judiciary, Land Administration, Municipal Services, Government Hospitals, Electricity (Consumers), Public Distribution System (Ration Card/Supplies), Income Tax (Individual Assesses), Water Supply, Education (up to Class XII) and Rural Financial Institutions (Farm Micro-Credit).
It claims to be the "largest corruption survey" ever undertaken in the country and the sample size includes 14,405 respondents, spread across 20 States, 151 cities and 306 villages. The study used both the perception and the actual experience of paying bribes.
On the corruption index the highest rank is claimed by police, closely followed by the judiciary (lower courts), and land administration. But, in monetary terms, schools are ranked the highest. Another observation from this study has been that States where private monopolies have replaced public government monopolies have fared only marginally.
Bihar has been rated as the most corrupt State, and the least corrupt State, according to the study, is Kerala where all the 11 public services considered for the study were ranked as the least corrupt. This has been attributed to extensive "decentralization" and the "more aware" citizen. Nevertheless Participatory Economics can be considered a panacea to the ailing state of affairs in India.
