GS Notes

17. Governance Notes 03

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Elaborate Notes

Corruption: Etymology, Definitions, and Nature

  • Etymology and Historical Context: The term ‘corruption’ is derived from the Latin word corruptus, meaning ‘to break’ or ‘to bend’. This implies a deviation from an ideal state of integrity, duty, or moral rectitude. Historically, the concern with corruption is ancient. Kautilya, in his treatise Arthashastra (circa 3rd century BCE), acknowledged the prevalence of corruption in administration, stating, “Just as it is impossible not to taste the honey or the poison that finds itself at the tip of the tongue, so it is impossible for a government servant not to eat up at least a bit of the king’s revenue.” He identified around forty methods of embezzlement.
  • Modern Definitions:
    • World Bank: The World Bank provides a widely accepted definition: “the abuse of public office for private gain.” This definition highlights three key elements: public office (the domain of action), abuse (the nature of the action), and private gain (the motive). This gain is not limited to monetary benefits but can also include status, influence, or other non-pecuniary advantages.
    • Second Administrative Reforms Commission (ARC): The 2nd ARC (2007), in its 4th Report titled “Ethics in Governance,” provided a formulaic definition to explain the mechanics of corruption: Corruption = (Monopoly + Discretion) - Accountability.
      • Monopoly: When a state or a public official has exclusive control over a good or service (e.g., spectrum allocation, natural resource licensing).
      • Discretion: When officials have significant latitude to make decisions without clear, objective criteria (e.g., awarding contracts, granting permits).
      • Accountability: The mechanisms—both internal (departmental inquiries) and external (audits by CAG, vigilance bodies, judicial review, media scrutiny, and citizen charters)—that compel officials to answer for their actions. The formula suggests that reducing monopoly and discretion while increasing accountability can effectively curb corruption.
  • Nature of Corruption in India:
    • Systemic: Corruption is considered systemic as it is embedded within the very structures and processes of India’s political, economic, and administrative systems. It is not merely an aberration but a feature of how these systems function. The colonial legacy of an administrative setup designed for revenue extraction rather than citizen welfare, as noted by the 2nd ARC, contributes to this. The report famously stated that “21st-century India is still governed by 19th-century rules and regulations.”
    • Systematic: It is systematic because it operates in a well-organized and often predictable manner. It involves established networks and chains of command, functioning as an illicit, parallel system. The Vohra Committee Report (1993) provided a stark account of the criminal-politician-bureaucrat nexus, highlighting this organized and systematic nature of corruption that undermines the state’s functioning.

Factors Responsible for Corruption

  • Political Factors:
    • Electoral Funding: The high cost of elections compels political parties to seek large, often illicit, donations from corporations and wealthy individuals. This creates a quid pro quo relationship, leading to policy capture where government policies are framed to benefit donors. This is a classic example of “crony capitalism.”
    • Abuse of Discretionary Power: In a representative democracy, the executive wields significant discretionary power in resource allocation. This has been the root of several major scams, such as the 2G Spectrum Allocation Scam (2008), where discretionary allocation instead of a transparent auction led to massive losses for the exchequer, as highlighted by the Comptroller and Auditor General (CAG) report.
  • Economic Factors:
    • Pre-1991 Era (Crony Socialism): The period was characterized by the “Licence-Quota-Permit Raj,” where the state had a near-monopoly over the economy. This created immense opportunities for corruption as businesses had to bribe officials to get licenses and permits. The Mundhra Scandal (1957) was one of the earliest major corruption cases, involving illicit government support for a private industrialist.
    • Post-1991 Era (Crony Capitalism): Following the LPG (Liberalisation, Privatisation, Globalisation) reforms, the nature of corruption shifted. While the state’s direct economic role reduced, its regulatory and resource-allocation role expanded. This led to crony capitalism, where success in business depends on the closeness of relationships between business people and government officials. The Coal Block Allocation Scam (2012) is a prime example, where non-transparent allocation of coal blocks to private firms led to allegations of cronyism.
  • Social and Cultural Factors:
    • Rise of Materialism: The post-liberalisation era has seen a surge in consumerism and materialism. This societal shift places a high premium on wealth and material possessions, often regardless of the means used to acquire them. Sociologist Robert K. Merton, in his “Strain Theory,” argued that when society emphasizes culturally defined goals (like wealth) without providing legitimate means for all to achieve them, individuals may resort to deviant or illicit means.
    • Social Tolerance: There is often a degree of social acceptance or tolerance for corruption, viewing it as a necessary evil or a “way of life” to get things done. This normalisation erodes the moral fabric of society and reduces social pressure against corrupt practices.
  • Administrative Factors:
    • Colonial Legacy: As highlighted by the 2nd ARC, India’s administrative machinery, including laws like the Indian Police Act, 1861, and the Indian Penal Code, 1860, retains a colonial character. These structures were designed for control and extraction, not for service delivery and citizen empowerment, fostering a culture of secrecy and opaqueness.
    • Low-Risk, High-Gain Activity: Ineffective and slow-moving anti-corruption machinery, coupled with procedural complexities in prosecuting corrupt officials (e.g., requirement for prior sanction under Section 19 of the Prevention of Corruption Act), makes corruption a high-reward activity with a low probability of punishment.

Governance and Secretariat Reforms

  • Dimensions of Good Governance: Good Governance is a multi-faceted concept aimed at making the state more responsive, accountable, and citizen-centric.

    • Political Dimension: This involves moving from a purely representative democracy, where citizen participation is limited to voting every five years, to a participatory governance model. This requires empowering citizens with knowledge (through initiatives like the Right to Information Act, 2005) to shift the political culture from one based on primordial loyalties (caste, religion) to one based on cognition (informed choices based on performance and policy).
    • Administrative Dimension: This focuses on transforming the colonial bureaucratic structure into a democratic one. Key principles include Decentralisation (empowering local governments as mandated by the 73rd and 74th Constitutional Amendments), Transparency (RTI), Accountability (Lokpal and Lokayuktas Act, 2013), Efficiency (e-governance), and Equity (inclusive policies).
    • Social Dimension: Good governance aims to create an egalitarian society by addressing deep-seated inequalities. This requires proactive policies of affirmative action and social justice to ensure that the benefits of development reach marginalised communities.

  • Secretariat Reforms: The Split and Tenure Systems

    • Origin and Rationale: The Secretariat is the nerve centre of the government, providing policy support to the political executive (Ministers). As ministers are political generalists, they rely on the domain expertise and institutional memory of civil servants. The current structure is a legacy of the British Indian administration.
    • The Split System: This system, a cornerstone of Indian administration, bifurcates the government’s work into two distinct functions:
      • Policy Formulation (Staff Agencies): This is the primary role of the Secretariat (e.g., Central Secretariat, Cabinet Secretariat, PMO). These are staffed predominantly by generalist civil servants (like IAS officers) who are expected to provide impartial and expert advice to ministers. Their function is advisory.
      • Policy Implementation (Line Agencies): This is the responsibility of departments, directorates, and field offices. These agencies are responsible for executing policies on the ground. They are typically headed by specialists or technical experts (e.g., a Chief Engineer heading the irrigation department, a Chief Medical Officer for the district health department).
    • The Tenure System: Introduced by Lord Curzon, this system facilitates the rotation of All India Service (AIS) officers between the Centre and their allocated state cadres.
      • Mechanism: An officer serves in their state cadre for a period, gaining field experience in policy implementation. They are then deputed to the Central Secretariat for a fixed tenure (usually 3-5 years) to contribute this ground-level experience to national policy formulation.
      • Benefits: This system is intended to (a) enrich central policymaking with practical field insights and (b) allow states to benefit from the national-level policy perspective gained by returning officers. It fosters national integration and a uniform administrative standard across the country.

Prelims Pointers

  • The word ‘corruption’ is derived from the Latin word corruptus.
  • The World Bank defines corruption as “the abuse of public office for private gain.”
  • The Second Administrative Reforms Commission (2nd ARC) gave the formula: Corruption = (Monopoly + Discretion) - Accountability.
  • Kautilya’s Arthashastra identified around 40 different ways of embezzlement by government officials.
  • The Vohra Committee Report (1993) examined the nexus between criminals, politicians, and bureaucrats.
  • The Santhanam Committee (1962) was constituted to advise on preventive measures against corruption and led to the formation of the Central Vigilance Commission (CVC).
  • Crony Socialism refers to corruption in a state-controlled economy, often linked to the Licence-Quota-Permit Raj in pre-1991 India.
  • Crony Capitalism refers to the nexus between business and government in a liberalised economy.
  • The Secretariat is a Staff Agency responsible for policy formulation.
  • Departments and Directorates are Line Agencies responsible for policy implementation.
  • The Secretariat is typically headed by generalist civil servants (IAS), while Line Agencies are often headed by specialists.
  • The Tenure System involves the deputation of All India Service officers from their state cadres to the Central Government for a fixed period. This system was introduced by Lord Curzon.

Mains Insights

GS Paper-II: Governance

  1. Corruption as a Governance Challenge:

    • Cause & Effect: Corruption is not just a moral issue but a fundamental governance failure. It erodes the legitimacy of the state, distorts public policy, undermines the rule of law, and diverts resources from crucial sectors like health and education. The systematic nature of corruption creates a vicious cycle where poor governance breeds corruption, and corruption, in turn, worsens governance.
    • Debate: Punitive vs. Preventive Measures: While punitive measures like the Lokpal and Lokayuktas Act and the Prevention of Corruption Act are necessary deterrents, the focus is shifting towards preventive measures. Reforms that reduce the (M+D-A) factors—such as e-governance (reduces discretion and secrecy), Right to Information (increases accountability), and citizen charters (clarifies entitlements)—are considered more effective in the long run for creating an ecosystem of integrity.

  2. Secretariat Reforms: Generalist vs. Specialist Debate:

    • The Argument for Generalists (IAS): Proponents argue that generalists bring a broader perspective, possess leadership and coordination skills, and are not biased by narrow departmental interests. The tenure system ensures they bring field experience to policymaking.
    • The Argument for Specialists: Critics, including the 2nd ARC, argue that in an increasingly complex and technical world, generalists lack the domain expertise required for effective policy formulation in sectors like finance, environment, or cybersecurity. They advocate for lateral entry of specialists into the Secretariat to improve policy quality.
    • A Balanced View: The optimal solution may lie in a hybrid model that combines the administrative experience of career civil servants with the deep domain knowledge of specialists, creating a more dynamic and responsive policymaking body.

GS Paper-IV: Ethics, Integrity, and Aptitude

  1. Ethical Dimensions of Corruption:
    • Erosion of Foundational Values: Corruption represents a complete collapse of foundational values like integrity, honesty, impartiality, and dedication to public service. It signifies the prioritisation of private interest over public duty.
    • Means vs. Ends Debate: The social acceptance of corruption reflects a utilitarian ethical calculus where the “end” (e.g., getting a job, a contract, or a quick service) justifies the “means” (bribery). This normalisation creates an ethical crisis, weakening the moral fabric of society.
    • Kohlberg’s Stages of Moral Development: From an ethical perspective, widespread corruption suggests that a significant part of the society and administration operates at a pre-conventional level of morality (acting to avoid punishment or gain reward) rather than a post-conventional level (acting on universal ethical principles). Changing this requires not just legal reforms but also long-term educational and behavioural interventions.

Previous Year Questions

Prelims

  1. The ‘Tenure System’ in Indian administration, often in news, refers to: (Hypothetical, based on UPSC pattern) (a) The fixed term of office for the President and Governors. (b) The system of deputation of All India Service officers from states to the Centre for a fixed period. (c) The permanent nature of the civil service until the age of retirement. (d) The process of appointing specialists from the private sector into the government for a specific tenure. Answer: (b) The system of deputation of All India Service officers from states to the Centre for a fixed period.

  2. Which of the following was/were the recommendation(s) of the Santhanam Committee (1962)? (Hypothetical, based on UPSC pattern)

    1. Establishment of the Central Vigilance Commission (CVC).
    2. Introduction of the Lokpal and Lokayuktas.
    3. Amendment to the Prevention of Corruption Act to widen its scope. Select the correct answer using the code given below: (a) 1 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3 Answer: (b) 1 and 3 only. The Santhanam Committee’s key recommendation was the CVC’s establishment. It also suggested various legal and administrative changes. The Lokpal was a later recommendation by the first ARC.

  3. With reference to the ‘Right to Information Act, 2005’, which of the following statements is correct? (Similar to past questions) (a) It is a Fundamental Right guaranteed under Article 19(1)(a) of the Constitution. (b) A public authority is obligated to provide information only if it is in the larger public interest. (c) The Act provides for the appointment of a Chief Information Commissioner at the national level only. (d) The decisions of the Central Information Commission are binding on the public authority. Answer: (d) The decisions of the Central Information Commission are binding on the public authority. While the Supreme Court has interpreted RTI to be a part of Article 19(1)(a), the Act itself is a statutory law.

  4. Consider the following statements regarding the Lokpal and Lokayuktas Act, 2013: (UPSC Prelims 2019 - Modified)

    1. The jurisdiction of Lokpal includes the Prime Minister, ministers, members of Parliament, and officials of the Central Government.
    2. The Lokpal has the power of superintendence and direction over any investigation agency including the CBI for cases referred to them. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer: (c) Both 1 and 2. The Act brings the Prime Minister under its purview with certain safeguards and gives the Lokpal powers of superintendence over the CBI in relevant cases.

  5. The formula “Corruption = Monopoly + Discretion – Accountability” is associated with: (Hypothetical, based on UPSC pattern) (a) The World Bank (b) Transparency International (c) The Second Administrative Reforms Commission of India (d) The Santhanam Committee Answer: (c) The Second Administrative Reforms Commission of India. This formula was popularised in its reports to explain the mechanics of corruption.

Mains

  1. “Institutional quality is a crucial driver of economic performance”. In this context, suggest reforms in the Civil Services for strengthening democracy. (UPSC Mains 2022, GS-II) Answer Framework:

    • Introduction: Define institutional quality as the set of formal and informal rules that govern society, including the civil services. Explain the direct correlation between good governance (driven by quality institutions) and economic performance, citing examples like high-performing East Asian economies.
    • Body:
      • How Civil Services Strengthen Democracy: Discuss their role in policy implementation, ensuring rule of law, maintaining political neutrality, and acting as a link between the government and citizens.
      • Reforms Needed to Strengthen Civil Services:
        • Structural Reforms: Mention the need for rightsizing the bureaucracy, lateral entry of specialists to bring in expertise (as suggested by 2nd ARC and NITI Aayog), and reforming the generalist-dominated structure.
        • Procedural Reforms: Emphasize simplifying rules to reduce red tape, promoting transparency through e-governance (Mission Karmayogi), and ensuring accountability through robust performance metrics.
        • Behavioural Reforms: Focus on capacity building, promoting a culture of innovation and integrity, and shifting the mindset from a ‘ruler’ to a ‘service provider’.
        • Ensuring Accountability: Suggest strengthening anti-corruption bodies, implementing a robust whistleblower protection mechanism, and insulating civil servants from arbitrary political interference.
    • Conclusion: Conclude by stating that a professional, impartial, and efficient civil service is the bedrock of a functioning democracy and a prerequisite for sustained economic growth. Reforms should be holistic and aimed at creating a future-ready bureaucracy.

  2. The Vohra Committee Report, though dated, continues to be a grim reminder of the politician-bureaucrat-criminal nexus. Discuss its relevance in contemporary India and suggest measures to break this nexus. (Hypothetical, based on Mains pattern) Answer Framework:

    • Introduction: Briefly state the context of the Vohra Committee Report (1993) and its central finding about the parallel government run by a nexus of criminals, politicians, and bureaucrats.
    • Body:
      • Contemporary Relevance:
        • Criminalisation of Politics: Cite data from the Association for Democratic Reforms (ADR) on the increasing number of MPs and MLAs with criminal cases.
        • Systematic Corruption: Link the nexus to major scams and the prevalence of crony capitalism.
        • Erosion of Rule of Law: Explain how this nexus undermines state institutions like the police and judiciary, leading to a breakdown of law and order.
      • Measures to Break the Nexus:
        • Electoral Reforms: State funding of elections, strengthening the Election Commission’s powers to debar candidates with serious criminal charges.
        • Police and Judicial Reforms: Implement the Supreme Court’s directives in the Prakash Singh case to ensure police autonomy. Ensure judicial independence and speedy trials for corruption and criminal cases involving public servants.
        • Administrative Reforms: Enhance transparency and accountability through technology (e-governance) and legislative tools (RTI, Lokpal). Strengthen whistleblower protection.
    • Conclusion: Reiterate that dismantling this unholy nexus is crucial for the survival of Indian democracy and for achieving the goals of good governance and inclusive development.

  3. Has the Right to Information (RTI) Act proved to be a master key to good governance in India? Critically evaluate. (Similar to UPSC Mains 2018/2019) Answer Framework:

    • Introduction: Introduce the RTI Act, 2005, as a landmark legislation aimed at empowering citizens and promoting transparency and accountability in government functioning.
    • Body:
      • RTI as a Master Key (Successes):
        • Empowerment: It has transformed the citizen-state relationship from supplicant-master to stakeholder-service provider.
        • Accountability: Exposed numerous scams (e.g., Adarsh Housing Scam, Commonwealth Games irregularities).
        • Reduced Corruption: Acted as a deterrent in day-to-day governance by making officials conscious of public scrutiny.
        • Improved Service Delivery: Citizens use it to track applications, pensions, and public works.
      • Limitations and Challenges (Critical Evaluation):
        • Dilution and Amendments: Mention recent amendments to the Act that have been criticized for potentially weakening the independence of Information Commissions.
        • Poor Implementation: Vacancies in Information Commissions, poor record management, and harassment of RTI activists.
        • Exemptions: Misuse of Section 8 to deny information under vague grounds like ‘national security’.
        • Lack of Awareness: Low awareness, especially in rural areas, limits its effectiveness.
    • Conclusion: Conclude that while the RTI Act has been a powerful tool and a definite step towards good governance, it is not a panacea. Its full potential can only be realised by strengthening the institution of Information Commissions, protecting activists, and fostering a genuine culture of transparency within the government.

  4. Corruption is the manifestation of the failure of core values in the society. In your opinion, what measures can be adopted to uplift the core values in the society? (UPSC Mains 2021, GS-IV) Answer Framework:

    • Introduction: Agree with the premise that corruption is fundamentally an ethical problem stemming from the erosion of core values like honesty, integrity, and responsibility in society.
    • Body:
      • Analysis of Value Erosion: Link materialism, ends-justify-means philosophy, and social tolerance for corruption to the decline in societal values.
      • Measures to Uplift Core Values:
        • Role of Family: Emphasize the family as the primary institution for inculcating values of honesty and empathy from childhood.
        • Educational Reforms: Integrating value-based and ethical education into the school and college curriculum. Focus on character-building, not just rote learning.
        • Role of Society and Leaders: Public figures, political leaders, and civil servants must act as role models of integrity. Socially boycotting the corrupt and celebrating honesty can create powerful social sanctions and incentives.
        • Role of Media and Culture: Promoting films, literature, and media content that celebrates ethical conduct and criticizes corruption.
        • Spiritual and Philosophical Guidance: Leveraging the teachings of great thinkers, philosophers, and religious texts to reinforce universal human values.
    • Conclusion: Conclude that while legal and institutional measures are necessary, a lasting solution to corruption requires a societal renaissance focused on rejuvenating our core ethical and moral values through a multi-pronged approach involving family, education, and public discourse.

  5. What are the main features of the ‘Tenure System’ in Indian Civil Services? Discuss its merits and demerits. (Hypothetical, based on Mains pattern) Answer Framework:

    • Introduction: Define the Tenure System as the systematic rotation of All India Service (AIS) officers between their state cadres and the Central government for fixed tenures. Mention its origins under Lord Curzon.
    • Body:
      • Main Features:
        • Deputation to the Centre for a fixed period (Central Deputation Reserve).
        • Officers gain experience at both policy formulation (Centre) and implementation (State) levels.
        • Aims to foster a national perspective and administrative unity.
        • Officers are expected to return to their parent cadre after the tenure.
      • Merits:
        • Policy Enrichment: Central policymaking is informed by ground-level realities brought by officers from various states.
        • National Integration: Creates a corps of officers with a pan-India perspective, strengthening the federal structure.
        • Skill Development: Provides officers with a broader range of experience, enhancing their administrative capabilities.
        • Objectivity: Officers on central deputation can offer more objective advice, being removed from local state-level political pressures.
      • Demerits:
        • Short Tenures: Frequent transfers can lead to a lack of deep domain expertise and disrupt policy continuity.
        • Reluctance of States: State governments are often unwilling to release their best officers, leading to a shortage of experienced officers at the Centre.
        • Politicisation: The process of empanelment and posting at the Centre can be influenced by political considerations, undermining the system’s neutrality.
        • Generalist vs. Specialist Debate: The system perpetuates the dominance of generalists even in highly technical ministries.
    • Conclusion: Conclude that while the Tenure System has been a foundational pillar of Indian administration, it needs reforms to address its shortcomings, such as ensuring longer and more stable tenures at the Centre and balancing the need for generalists with the infusion of specialist talent.

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