Comment Pieces

The Corruption Formula

Posted on March 23, 2011

Corruption = Monopoly + Discretion – Accountability C=M+D-A

 

Robert Klitgaard, a prominent authority on the subject of corruption, believes that corruption almost always follows this formula.

 

His theory is that corruption flourishes in a system of governance where there is a high degree of monopoly and discretion with a low demand for accountability. He holds that corruption succeeds where citizens have not yet begun to demand public services as their entitlements and still look upon them as favours dispensed from above.

 

With respect to India, this theory can be extrapolated thus to solve the corruption riddle. As monopoly in most systems of governance in the country is inevitable, the key is to reduce the level of discretion available with babus and increase their degree of accountability for their actions. Klitgaard felt that corruption is a crime of calculation; and predicted that many people would drift into becoming corrupt if they see that the risks are low, penalties are mild and rewards great. Drawing from these insights, he also suggested that the broad solution that anti-corruption movements can offer is to make the calculation risky for the corrupt - they will move out if the system is tightened.

 

In IPAB’s battle against corruption, this is the theory we subscribe to. Our Bribe Bandh Campaign is a means to bring about stricter and more effective laws to curb corruption in keeping with this theory.