• Social causes: General degradation of social values and accepting corruption as a normal part of life which results in a morally vitiated atmosphere. Nepotism which has been in vogue since the ancient period has its impact on recruitment even today. Nepotism breeds corruption. Lack of vigilant civil society and local level community mechanisms which can act as effective accountability mechanisms. 

• Economic causes: There is a general mismatch in pay structure between various sectors of the economy. Such a mismatch coupled with poor incentive mechanisms in the public sector prompts some public servants to search for sources of extra-earning. The rising inflation impacts the cost of living and purchasing power capacity of especially those civil servants who are placed at lower positions in the hierarchy. Highly complex tax laws also contribute to the rise in corruption as many people try to avoid or evade taxes. Such evasion of taxes creates black money in the economy which in turn is used to effectuate corrupt activities. The undue political and bureaucratic control on the economic environment promotes rent-seeking behaviour.

• Political causes: Corrupt practices in the institution of election are a prime source of corruption. Political parties which capture power by corrupt practice sets a vicious cycle where the seeds for bureaucratic corruption gets sown followed by corruption in business. Instability in the government may also catapult a nation and its leaders towards corruption. Funding of elections through giant business houses and criminalisation of politics are reasons why corruption becomes institutional in nature. Politicisation of civil services results in an unholy politics-bureaucratic nexus which is detrimental for the development of the country.

• Administrative causes: Culture of secrecy and red-tapism in bureaucracy leads to delays in delivery of essential services to the citizens. It also prevents accountability and acts as a pathway for corrupt activities. High degree of centralisation in bureaucracy results in lack of decision making powers at the grassroot level where people have the largest interface with the administration. This leads to inaction or indifference among civil servants working at grassroot level. The arbitrary action of political masters on civil servants such as undue transfers and suspensions makes them ‘action shy’ which results in malfeasance in administration.

• Judicial factors: Judicial delay in disposal of cases prompts litigants to venture into illegal or corrupt means to access justice. Expensive judicial system makes a common man not to venture into litigations, it incentivises those in positions of power and authority to perpetuate their wrongdoings.

• Legal factors: Loopholes in existing legal mechanisms such The Income Tax Law, The Prevention of Corruption Act, etc. are exploited to commit corrupt activities. The conviction rate under the prevention of corruption act stands abysmally low which acts as an incentive for corrupt officials to indulge in corrupt activities. Constitutional safeguards provided to civil servants under article 311 makes the dismissal of civil servants a complex and a very difficult task. Such a constitutional protection is misused by corrupt officials to delay the proceedings against them. 

Effects of Corruption 

Corruption in public life results in loss of confidence and faith of people in the democratic institutions and public officials. Mis-utilisation of resources leads to inefficiency in production and economic development. Higher the corruption, lower would be the investment in the economy and resultant lower job creation. Corruption sets in a vicious cycle in the economy which not only gives rise to higher poverty rates but also puts the overall development on a slippery slope.

Nepotism and favouritism results in misallocation of the talent which adversely affects the country’s economic growth. Corruption creates an environment for unsound economic policies and distorted public expenditure. Lower quality of infrastructure and public services which affect the health and safety of the citizens. Corruption affects the poor the most as subsidies/aid/relief funds do not reach them or reach at a very high cost which is unaffordable by them. 

Corruption is an enormous contributor to poverty in a nation and widening imbalances between the rich and the poor. Corruption allows money or connections to determine whether rules or laws are enforced.  Corruption leads to erosion of  constitutional values, lack of respect for human rights, etc. which are detrimental for any democracy.