Corruption in India:analysis and remedies
In a modern mixed capitalist system the basic framework has to do with how the economy performs with a wide range of instruments at its disposal (like taxation, public spending, state participation in production, direct controls, regulations, legislation, monetary and debt policy). The functions of the state are very much affected by the kind of ground rules under which the private economy operates. In turn, all of us are constantly affected by the economic and other decisions of the government. In its wide connotation, government or state has three important and mutually dependent components: voters, legislators and administrators. They have strong relationships with one another. Voters express their preferences with relation to public decisions which may or may not be honoured by the legislators who take eventual decisions. The decisions are implemented by the administrators who may or may not be effective. The role of information and of interest groups is crucial to these inter-linkages. The functioning of the economy, and the roles of individuals in their capacity as voters, legislators, and administrators get distorted, amongst other things, by corrupt and immoral practices called 'rent-seeking' and 'directly unproductive profit seeking' activities in the terminology of the 'New Political Economy' (Anand, 1996, 1998) implying, apart from other things, dishonest and improper use of one's power or position for purposes of making illegal money or enhancing one's power and influence.