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Effect Of Corruption In Economic Growth
Corruption in any form is treated as an incurable disease cause of many social and economical evils in the society and it damages the moral and ethical fibers of the civilization .Indisputably,.
We can find several countries having corrupt regime but yielding excellent economic result and other countries with clean regime showing very poor result in term of economic prosperity and growth.
Corruption in long run may destroy the whole society morally, ethically and economically .May be in the long run, a country needs clean government to reach top of the income ladder, may be rapid income growth by its self induce better accountability and governance, may be corruption in long run degenerate the society into several misfortune and evils .But clean govt is not necessary condition for rapid economic growth.
A survey conducted by World Development Report some year ago, business man in surveyed countries said that the main problem with corruption was that it increases risk and uncertainty .The risk declined dramatically if corruption produced reliable outcome .If all player have to play 10% and could treat of getting their license entrepreneurs could treat this as just one more tax, factor it into their calculations of profit and so could invest with confidence of sure gain.
The quality of institution seems to be the most important factor for the growth of a countries .If the institution work moderately well, progress is possible even if money is skimmed off at the top .But if the institution are incapable of enforcing any right, corruption will hasten economic collapse.
So far Indian economic is concerned the slow progress is the result of lack of decision making at higher level .Many politician who take money but could not enforce their will because of powerful lobby of bureaucrats at many place and a democracy like India ,voice of media ,voice of opposition could suppress the wish of the leader .
India’s economic growth on an average 6 % GDP despite considerable corruption is because of the stability and the liberalized measure taken by the present govt., gradual privatization of various sector, reducing bureaucratic intervention in routine work & other measure adopted by govt.
In brief it can be concluded that corruption and economic growth has no clear correlation .strong institution, political stability, fast and reasonability in decision taking are some of the requirement for fast economic growth.