India’s Global Ranking in Corruption Perceptions Index, 2013

Transparency International;: Corruption Perceptions Index 2013, extracted on May 17, 2015 from http://www.transparency.org/cpi2013/results

Bhutan

31/175

Seychelles 54/175

Brazil 72/175

South Africa 72/175

China 80/175

Sri Lanka 91/175

India 94/175

Russia

127/175

The Economic Perspective: Rent Seeking

Over regulation

Creation of Imperfect Markets

State Monopolies

Contracting & Purchasing

Outsourcing & Public-Private Partnerships

Impact-oriented

The Institutional Perspective: Rent Seeking

Reaction to external stimuli

Affects internal structure

Push-Pull between environment and structure

Role of Managers

Methods of Survival

Negative & Positive Impacts

Origin-orientedCartoon extracted on Jun 6, 20154 from http://www.capoliticalreview.com/wp-content/uploads/2014/11/Big-Government-Thanksgiving.jpg

How the two Academic Perspectives Meet in this Book

Decline of Accountability Institutions

Legal Framework

Conformity to rules of executive

Imposition of apex managers by executive

State captures institutions

The Impact

Creates opportunities for rent seeking that starts at apex levels and filters down

State capture weakens accountability institutions

Are Governance & Accountability Standalones?

Governance

Accountabilit

y

Two Sides of the Same Rupee

How are Governance & Accountability Linked?

Governance

Accountability

Who Proposes & Approves Laws & Policy?

Apex Civil Service Cabinet Legislature

Who Approves the Subordinate Rules & Regulations?

Rent-seeking

Private Interest Groups

(off record)

Apex managers

Ministers

How are our Rule & Policy Proposers Selected?

Rent-seeking

•Exclusive• Opaque

• Compliant

Why are Rule & Policy Proposers Important?

Rules

Lower non-

compliance

premium

High Complianc

e Costs

Rent-seekin

g

How the Grand Corruption Malaise Spreads

State capture of

accountability institutions by

compliant CEOs & apex

managers

Seamless integration with street-

level managers

Compliant Apex

Managers

Rent-seeking

Rising Transaction

Cost

Public Welfare shrinks with low accountability in governance

Our Dissonant Accountability Institutions

CVC

CBI

CAG

Media

Political Parties

Civil Services

Judiciary

Police

The Assonant Club of Survivors of Capture

Higher Judiciar

yCentral Election

Commission

Critical Areas of Governance for the Layman

Senior Civil Service

Appointments

Antiquated Legislation

Fiscal Administration

Quality of ExpenditurePublic Projects

Higher Education

Allocation of Natural

Resources

Public Perception vs. Reality

Popular Perception Reality

Private Interest Groups

Accountability Institutions

Apex Managers

Political Stewards

Street-level Managers

Political subordinates

Expectations of India’s New Emerging Middle Class

ASPIRATIONS

CONFRONTATION

ContentsAcknowledgements 7

Introduction 11

1. Introducing Corruption in Governance

21

2. Brief History of Corruption

23

3. Typology of Corruption 37

4. Causes and Consequences of Corruption

45

5. Magnitude of Corruption in India

65

6.The National Integrity System (NIS)

76

7. Assonance and Dissonance in Pillars of NIS

86

8. Institutional Manifestations of Dissonance

193

9. India’s New Emerging Middle Class (GenNext)

Demands Assonance in Governance

303

10. Some Stepping Stones for a Prosperous and Global India

312

11. Why the Grand Corruption Worm Must Not Win

375

From Dissonance to Assonance

D

I

S

S

O

N

A

N

C

E

A

S

S

O

N

A

N

C

E

Accountable Governance

Economic well-being

Global India

This Book answers these questions and much more……

How does grand corruption affect you, the world and

India?

Has the definition of corruption changed over time?

How large is the corruption industry in India?

What are the types of corruption you face or hear of?

Why does corruption occur when we have so many

accountability institutions and laws?

Do our laws, policies and rules promote rent-seeking?

Why do I seldom benefit from state expenditure?

How do mega corruption reports in India affect my

quality of life?

Why have India’s accountability institutions failed to

control corruption?

Why must I defeat this grand corruption monster?

Available athttp://www.amazon.in/dp/

9352070801&

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