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ARC-Ethics In Governance
Sunday, July 8, 2018 12:21 PM

• The six perceived governance quality measures, each an aggregate of a number of sub-
measures, are:
a. voice and accountability;
b. absence of political instability and violence;
c. Government effectiveness;
d. reasonableness of the regulatory burden;
e. the rule of law; and
f. the absence of graft.
Of these, the last two are the most directly significant in the context of ethical
governance.
○ ‘Rule of law’ measures whether crime is properly punished or not; enforceability of
contracts; extent of black market; enforceable rights of property; extent of tax
evasion; judiciary’s independence; ability of business and people to challenge
government action in courts etc.
○ ‘Absence of graft’ measures relative absence of corruption among government,
political and bureaucratic officials; of bribes related to securing of permits and
licences; of corruption in the judiciary; of corruption that scares off foreign
investors.

Introduction

Discuss different approaches to tackle corruption.

As per ARC Report, there are basically two sets of approaches to deal with corruption.
1. The fist is overemphasis on values and character.
2. The second approach is based on the belief that most human beings are fundamentally
good and socially conscious, but there is always a small proportion of people that value
their personal interest above overall societal interest. Proper reward and punishment
mechanisms can help tackle. It is basically having a sound legal system and enforcement of
rule of law.

Values need to be sustained by institutions to be durable. Substantiate with examples.

A sense of right and wrong is intrinsic to our culture and civilization. Institutional support is
essential for values to be durable as without institutional support values tend to be weakened
and soon dissipate.
• Institutions provide the container, which gives shape and content to values. This is the
basis of statecraft and laws and institutions.
• While incentives and institutions matter for all people, they are critical in dealing with the
army of public servants- elected or appointed- endowed with public resources and trust,
impacting lives of all through the power vested in them.
• Public office brings with itself enormous temptation to indulge in corrupt activities.
• Therefore, creation of institutions and designing of incentives are of utmost importance in
promoting ethical conduct of public servants.
Examples where institutions sustained value-
• Constituent Assembly showcased highest standard of values towards democratic polity,
this is the reason India is a functioning democracy while other countries are not
• Indian Military has showcased value of restraint and non-interference in civilian matters.
Pak military didn’t and thus their state of democracy is in shambles
• Election Commission of India has adhered to values of impartiality and neutrality, allowing
a vibrant electoral politics to emerge.
• Judiciary- to a large extent
Examples where institutions didn’t sustain value-
• Institution of Bureaucracy has not fully respected the value of public service and integrity,
therefore India is seen as a corrupt country in various surveys eg, Transparency
International Corruption Perception Index.
• Political Parties have not fully accepted the values of secularism, equality irrespective of
identity of caste and gender, therefore we see communal violence, dalit atrocities, etc as
manifestation of erosion of these values.

Discuss the main reasons for corruption and abuse of office in our society.
According to ARC Report, these been aggravated by three factors-
1. a colonial legacy of unchallenged authority and propensity to exercise power arbitrarily
2. enormous asymmetry of power in our society- 90% in unorganized sector with low wages
and job uncertainty. Of the organized sector, 70% are employed by govt. Even the lowest
govt servant is much better off than significant section of society. Such asymmetry reduces
societal pressure to conform to ethical behavior and makes it easy to indulge in
corruption.
3. Third, as a conscious choice, the Indian state in the early decades after Independence
chose a set of policies whose unintended consequence was to put the citizen at the mercy

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of the State. License, Quota, Permit Raj. Over presence of state in several sectors enhanced
opportunity of corruption.

It is generally recognized that monopoly and discretion increase the propensity to corruption
while competition and transparency reduce corruption. Discuss.
Monopoly and discretion- from pervious answer. Another factor which increases corruption is
over centralization. The more remotely power is exercised from the people, the greater is the
distance between authority and accountability.
Competition and Transparency
• As competition came in and choice expanded, corruption plummeted. Telephones, steel,
cement, sugar and even two-wheelers are among the many sectors, which have seen
enhanced supply and choice, reducing or even eliminating corruption.
• Similarly, wherever technology and transparency have been introduced, corruption has
been significantly contained. Computerization and access to information have made many
services from railway reservation to issuing of driving licenses increasingly free from
corruption

Every democracy requires the empowerment of citizens in order to hold those in authority to
account. Elaborate.
[Can also include above answer in its entirety along with following]
• Right to Information,
• effective citizens’ charters,
• opportunity and incentives to promote proactive approach of citizens, - Citizen Feedback
in Swachhata Sarvekshan
• stake-holders’ involvement in delivery of public services, - social audit law of Mehgalaya
• public consultation in decision making and - National policies, laws,
• social auditing,
are some of the instruments of accountability that dramatically curbed corruption and promoted
integrity and quality of decision making.

"Perhaps the most important determinant of the integrity of a society or the prevalence of
corruption is the quality of politics". Do you agree?
• If politics attracts and rewards men and women of integrity, competence and passion for
public good, then the society is safe and integrity is maintained.
• But if honesty is incompatible with survival in politics, and if public life attracts undesirable
and corrupt elements seeking private gain, then abuse of authority and corruption become
the norm.
• In such a political culture and climate, desirable initiatives (such as competition,
transparency, legal initiatives) will not yield adequate dividends. Competition and
decentralization certainly reduce corruption in certain sectors. But source of demand for
corruption for illegitimate funds in politics is not addressed , then other avenues of
corruption will be forcibly opened up.
• As a result, even as corruption declines in certain areas, it shifts to other, sometimes more
dangerous, areas in which competition cannot be introduced and the state exercises a
natural monopoly eg, Defense deals, Allocation of public resources such as mines,
spectrum, etc
• What is needed with liberalisation is corresponding political and governance reform to
alter the incentives in politics and public office and to promote integrity and ethical
conduct.

Discuss the forms of corruption. Do you think liberalization has only shifted corruption from
coercive to collusive form? Give example.
[define what corruption is ]
Coercive Corruption-
• In a vast majority of cases of bribery, the citizen is a victim of extortion and is compelled to
pay a bribe in order to get a service to which he is entitled.
• Experience has taught most citizens that there is a vicious cycle of corruption operating
and they often end up losing much more by resisting corruption.
• Delays, harassment, lost opportunity, loss of precious time and wages, uncertainty and, at
times, potential danger of loss of life or limb could result from resistance to corruption and
non-compliance with demands.
• In such cases, the citizen is an unwilling victim of coercive corruption.

Collusive Corruption-
• But there are several cases of collusion between the bribe giver and corrupt public servant.
In such cases of collusive corruption, both parties benefit at immense cost to society.
• Examples-
○ Awarding of contracts for public works and
○ procurement of goods and services,
○ recruitment of employees,
○ evasion of taxes,
○ substandard projects,
○ collusive violation of regulations,
○ adulteration of foods and drugs,
○ obstruction of justice and concealing or doctoring evidence in investigation
are all examples of such dangerous forms of corruption.

Impact of Liberalization-

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As the economy is freed from state controls, extortionary corruption declines and collusive
corruption tends to increase. We need to fashion strong and effective instruments to deal with
this growing menace of collusive corruption, which is undermining the very foundations of our
democracy and endangering society.

"Ethics in Governance cant be achieved just by ethical public servants." What do you understand
by this statement?
[First discuss why ethical public servants- elected and appointed- are necessary]
• Ethics in governance, however, has a much wider import than what happens in the
different arms of the government.
• An across-the-board effort is needed to fight deviations from ethical norms. Such an effort
needs to include corporate ethics and ethics in business;
• There is need for ethics in every profession, voluntary organization and civil society
structure as these entities are now vitally involved in the process of governance.
• Finally, there should be ethics in citizen behaviour because such behaviour impinges
directly on ethics in government and administration

Ethical Framework

"India was fortunate that high standards of ethical conduct were an integral part of the freedom
struggle. Unfortunately, ethical capital started getting eroded after the transfer of power."
Elaborate.
[Elaborate on high ethical conduct by Mahatma Gandhi, resignation of congress on declaration
of war, upholding values by constituent assembly, etc.]
Decline post-independence-
1. Excesses in elections
○ in campaign-funding,
○ use of illegitimate money,
○ quantum of expenditure,
○ imperfect electoral rolls,
○ impersonation,
○ booth-capturing,
○ violence,
○ inducements and
○ intimidation,
2. floor-crossing after elections to get into power and
3. abuse of power in public office became major afflictions of the political process over the
years.
4. Criminalization

Discuss the steps taken to improve ethics in politics.

1. Improvement in the accuracy of Electoral Rolls along with provision of photo identity cards
for all voters.
2. Disclosures of Antecedents of candidates as per the directions of the Supreme Court
3. Debarring convicts from contesting election under Sec 8 of RPA
4. Enforcement of Code of conduct
5. Free and Fair polling
6. Reduction is size of council of ministers
Way Forward-
1. Reform in political funding - a partial state funding can be considered
2. The issue of disqualification on grounds of defection should be decided by
President/Governor on the advice of EC
3. Appointment of CEC and Ecs should be done on the recommendation of a collegium
consisting of PM(Chairman), Speaker, LoP(LS), Law Min, Deputy Chairman
4. Special Election Tribunals should be constituted at the regional level under Article 323B of
the Constitution to ensure speedy disposal of election petitions and disputes within a
stipulated period of six months.
5. Office of Profit- Appropriate legislation may be enacted under Article 102(e) of the
Constitution spelling out the conditions for disqualification of membership of Parliament in
an exhaustive manner. Similarly, the States may also legislate under Article 198 (e).

Analyze the components of Ethical Framework of Behaviour of Public Servants. Also comment of
the difference in approach required to tackle declining ethics at lower level vs higher levels in
administration.
The role of ethics in public life has many dimensions. At one end is the expression of high moral
values and at the other, the specifics of action for which a public functionary can be held legally
accountable.

Any framework of ethical behaviour must include the following elements:

1. Codifying ethical norms and practices ie, Code of Conduct and Code of Ethics.
2. Disclosing personal interest to avoid conflict between public interest and personal gain.
3. Creating a mechanism for enforcing the relevant codes.
4. Providing norms for qualifying and disqualifying a public functionary from office

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It is desirable and possible to govern the conduct of those who occupy positions in the lower
echelons and exercise limited or no discretion through simplification of processes, more
transparency, use of technology, and so on.

But the higher the echelon in public service, the greater is discretion and laws/rules/regulations
cannot comprehensively cover all possible situational responses. Therefore the qualities outlined
by Nolan Committee becomes more important for people holding higher positions.

Discuss seven social sins enumerated by Mahatma Gandhi.

The credibility of a disciplinary body in respect of any profession depends upon how they deal
with cases of delinquency involving serious misconduct. Elaborate.
Supreme Court made this observation. [Disciplinary body is a body in a specific domain
entrusted with the responsibility to ensure high standards of ethical conduct within that
domain.]

The members of such profession- be it accounting, law, medicine, or any other vocation-
besides having a duty to serve their profession faithfully, also owe a duty to the society which
has vital public interest.

The disciplinary bodies are guardians of due administration of justice. They are entrusted with
requisite power and rather a duty while supervising the conduct of the members of the given
profession, to inflict appropriate penalty when members are found to be guilty of misconduct.

Thus their credibility depends on how they discharge justice, failing which has a tendency to
erode the credibility and reputation of the said profession and the punishment, of course, has to
be commensurate with the gravity of the misconduct.

Legal Framework for Fighting Corruption

Discuss the evolution of anti-corruption laws in India.

• In the pre-independence period, the Indian Penal Code (IPC) was the main tool to combat
corruption in public life.
• The Second World War created shortages which gave opportunity to unscrupulous
elements to exploit the situation leading to large scale corruption in public life.
• The Prevention of Corruption Act 1947: This Act did not redefine nor expand the definition
of offences related to corruption, already existing in the IPC. Similarly, it also adopted the
same definition of ‘Public Servant’ as in the IPC. However the law defined a new offence
-‘Criminal misconduct in discharge of official duty’ - for which enhanced punishment was
stipulated.
• Amendments in 1964: The anti-corruption laws underwent comprehensive amendments in
1964. The definition of ‘Public Servant’ under the IPC was expanded on recommendations
of Santhanam Committee.
• The Prevention of Corruption Act, 1988: The term ‘ Public Servant’ is defined in the Act. The
definition is broader than what existed in the IPC. A new concept – ‘Public Duty’ is
introduced in the Act.
• The Prevention of Corruption Act, 1988- does not define corruption (even UN Convention
against Corruption also doesn’t define corruption). However, it lists offences such as
bribery, illegal gratification, quid pro quo, and criminal misconduct involving receiving
gratification.. Attempts to commit such offences are also covered.
Future Amendments to be considered-
1. PoCA should classify following as offence-
a. Gross perversion of the Constitution and democratic institutions amounting to willful
violation of oath of office
b. Abuse of authority unduly favoring or harming someone.
c. Obstruction of justice
d. Squandering public money
2. Section 7 of PoCA needs amendment to provide for a special offence of "collusive bribery"
along with its definition.
3. Prior sanction should not be necessary for prosecuting a public servant who has been
trapped red handed or in cases of possessing assets disproportionate to the know sources
of income.
4. Power to grant sanction against servant of central govt should be vested in a committee
headed by CVC.
5. The Prevention of Corruption Act should be suitably amended to include in its purview
private sector providers of public utility services.
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6. Special court judges should dispose these cases on a priority basis and not grant lax
adjournment.
7. Whistleblower Act
8. National Commission to Review the Working of the Constitution, recommends that
suitable amendments be effected to Article 105(2) of the Constitution to provide that the
immunity enjoyed by Members of Parliament does not cover corrupt acts committed by
them in connection with their duties in the House or otherwise. Same for MLAs.

Social Infrastructure

Discuss the importance of civil society in bringing ethics in governance. Give Examples. Also
suggest measures to improve civil society participation in governance.
Civil Society has played an important role in improving ethics in governance by creating
mechanisms, and in some cases legislations, that improves the quality of governance through
increasing transparency, accountability, and citizen participation. Following substantiates this
hypothesis-
• Parivartan, an NGO based in Delhi, used the Right to Information law to expose corruption
in the Public Distribution System by insisting on access to stock registers maintained by
fair price shops.
• The Mazdoor Kisan Shakti Sangathan (MKSS) in Rajasthan, a well-known NGO, started
uncovering corruption in local public works by gaining access to employment rolls,
vouchers, beneficiary lists. This led to Raj govt legislating on social audit requirement.
• Utilization of PIL instrument effectively to bring about change. For eg, Association for
Democratic Reform used it for disclosure of criminal, financial and educational background
of the candidates contesting election.
• Lokpal Movement- by Anna Hazare and India Against Corruption was successful in passing
of the legislation for creation of lokpal.

Measures to facilitate such participation-

1. Inviting civil societies to oversee govt programmes
2. Establishing and disseminating service standards - through Citizen Charter, Sevottam
model
3. Establishing credible complaint mechanism
4. Assessing public confidence in anti-corruption institutions, judiciary and law enforcement
and in designing programmes to improve trust levels
5. Self declaration of information
6. Using mechanisms such as public hearing, social audit, to assess citizens' perception
7. Setting up websites on corruption- containing information, facilitating dialogue and
feedback from citizens, associating former public servants in lobbying against corruption.

Reward schemes should be introduced to incentivise citizens’ initiatives against corruption.

Discuss.
The existing provisions in the Indian Penal Code and other enactments are not adequate to
enable interested citizens and civil society groups to approach courts for recovery of the
proceeds of corruption and provide for a share in the proceeds.

In the United States, the False Claims Act makes it possible for interested citizens to approach
any court in any judicial district for recovery of the proceeds of corruption.
Under the Federal False Claims, any person who has knowledge about a fraud committed by
another person or entity, may file a law suit on behalf of the Federal Government.

Discuss the Role of Media in prevention, monitoring and control of corruption.

Media can inform and educate the public on corruption, expose corruption in government,
private sector and civil society organizations and help monitor codes of conduct while policing
itself against corruption. Following are useful-
1. Investigative reporting
2. Daily reporting of instances of corruption

However, often under pressure of competition, media doesn’t verify the allegations and puts the
information in public domain. Occasionally such cases are motivated. Moreover, the corporate
ownership model of media is vulnerable to not report cases that impacts the interests of the
owners.

Systemic Reforms

Eg,
1. The Agricultural Produce Marketing Act, 1972, of Madhya Pradesh permitted only the
traders in the officially designated mandis to buy the produce of the farmers. The officials
of the Mandi Samitis and the traders formed a monopsonistic nexus to cheat the farmers
by paying them less than the fair price of their produce.
2. Railway Ticket booking

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"One mechanism that can help in promoting transparency and creating confidence in public
contracting is the use of integrity pacts". Elaborate
• The term refers to an agreement between the public agency involved in procuring goods
and services and the bidder for a public contract to the effect that the bidders have not
paid and shall not pay any illegal gratification to secure the contract in question.
• For its part, the public agency calling for bids commits to ensuring a level playing field and
fair play in the procurement process.
• An important feature of such pacts is that they often involve oversight and scrutiny by
independent, outside observers.
• Such pacts have contributed significantly to improved transparency and public confidence
in the manner in which major deals in Government and public sector organizations are
concluded.
• Many national legal systems now give considerable weightage to such pacts.

Example of impact of Reducing Discretion.

An interesting example of improved transparency is the system introduced for effecting transfers
of teachers in Karnataka. Under the old system, the practice was that every year some 15000
school teachers used to request transfers to a place of their choice through written applications
to several authorities, requiring initiation of action at different levels. Often, the process of
decision-making was non-transparent and was riddled with corruption. Under the changed
system, applicants are required to submit the reasons for the request for transfer and these are
prioritized centrally. A computer-generated list containing the names of transfer seekers along
with their ranking (based on the reasons for transfer) are published on the notice board of the
department, and objections, if any, are invited. It is reported that this scheme contributed to
considerably reducing corruption.

Discuss the concept of risk management and preventive vigilance in public administration. Also
highlight the challenges involved.
• The risk of corruption in government depends on the nature of the office and its activity
and the character of the person holding that office. An office having more discretion and
more public interface is more vulnerable to corruption than an office in which there are no
discretionary powers.
• This implies that it may be possible to classify various positions in government as ‘high risk
of corruption’, ‘medium risk of corruption’ and ‘ low risk of corruption’.
• Eg, the post of a tax assessing officer or an inspector at a border checkpost could be
classified as a ‘high risk position’, whereas the position of an official at an enquiry counter
is a ‘low risk position’.
• Similarly, individual government servants vary in their level of integrity, ranging from those
who indulge in outright extortion to those who are absolutely upright.
• A risk management system to prevent corruption should seek to minimize risk by ensuring
that ‘low risk personnel’ should hold ‘high risk jobs’ and vice versa.
Challenges-
• Risk profiling of government officials poses a challenge in the sense that the present
system of performance evaluation discourages a reporting officer from giving anything
‘adverse’.
• Moreover, categorizing an official as ‘high’ risk based on an adverse rating by one
reporting officer may not be fair (unless a glaring misconduct has come to notice).
• It would, therefore, be better if risk profiling of officers is done by a committee of ‘eminent
persons’ after the officer has completed ten years of service, and then once in every five
years.

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