The desire to pay lower taxes than those demanded by the state explains the demand side of corruption. The net result is that the corrupt officials collect bribes, the government fails to collect taxes for its own budget and corruption grows. The report suggests regulatory reforms, process simplification and lower taxes as means to increase tax receipts and reduce causes of corruption.[13][75]
It should be noted, however, that even well-written policies and audit systems can fail when faced with organization-wide corruption. The Siemens corruption scandal is one such example. In this case, Siemens appeared to do business according to the highest ethical and legal standards. The corporation had several anti-corruption norms and codes of conduct which had been in place since 1991 (Vernard, 2018). Yet, in 2006, after a police investigation, it was discovered that the Siemens corporation had used bribes and corruption for business gain. In 2008, the Siemens corporation pleaded guilty to committing bribery and other corrupt practices in foreign business dealings and paid 1.6 billion to American and European authorities as part of a settlement agreement (Lichblau and Dougherty, 2008). Significant reforms in Siemens followed this corruption case. An outsider, who was chosen as the new Chief Executive Officer of Siemens, restructured many aspects of the business, including its organizational structure and culture. More information about the lessons learned form the Siemens case is available in this news report .
Corruption In India Causes, Effects And Reforms
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The fall of the Soviet empire also had far-reaching effects on the world as a whole, particularly among its former Soviet satellite nations. For some countries, such as Azerbaijan and Kazakhstan, oil and natural gas exports have created prosperity but have also enabled corruption. Countries such as Lithuania and Latvia underwent dramatic transformations by quickly turning to the West, adopting Western ideals and political leanings, while other countries, such as Armenia and Tajikistan, have struggled to flourish in the post-Soviet era and many citizens remain poverty-stricken while the states and their politics remain in flux.
An anti-corruption regime refers to the legal frameworks, institutions, and capacities that countries enact and sustain to prevent, detect, and prosecute corruption. Legal reforms are insufficient without capacity to implement or enforce them, such as the ability to effectively investigate, prosecute, and adjudicate crimes. As corruption is increasingly transnational in nature, the ability of officials of individual countries to prevent and pursue corruption must be complemented by regional and global efforts and measures to support effective international cooperation and partnerships.
Do public service reforms improve citizen services? Over the last two decades both public-private partnerships and information and communication technologies have been promoted as tools for reforming service delivery in developing countries. However, observational studies of policies intended to promote these reform models are hindered by selection bias. Experimental evaluations, on the other hand, can be limited in their potential for generalization to broader populations. In this study, I adopt a combined experimental and observational approach to evaluate the independent effects of privatization and computerization in an initiative to improve citizen services in the south Indian state of Karnataka. Through the use of a citizen survey and field experiment, I show that privatization of service delivery, combined with computerization, has a larger positive effect than computerization alone on a number of service quality measures, including the demand for, and size of, bribes from citizens. While private, computerized centers do not improve all facets of service delivery and, interestingly, do not engender higher levels of satisfaction from citizens, their effect on corruption in the service delivery process is substantial.
Constituency service is an important element of Indian legislator activity. Early interest in the importance of the personal vote in India paid particular attention to the relevance of Indian electoral institutions for promoting the supply of constituency service to Indian citizens. Yet analysts have paid little attention to the potential effects of other institutional characteristics, such as the major decentralization reforms of the 1990s, on the nature of politician-citizen interactions. In this paper I use survey evidence from citizens in the south Indian state of Karnataka to show that, despite nearly two decades of formal political and fiscal decentralization in the state, in the majority of cases citizens continue to rely on the assistance of state-level politicians to navigate the state bureaucracy rather than their local counterparts. In addition I find that party affiliation, rather than demographic characteristics such as gender or caste, plays a predominant role in shaping both whom citizens have asked for help in the past and who they expect they would ask for help in the future. These findings contrast with the literature on decentralization that emphasizes the importance of decentralization for increasing the representation of minority groups and highlights the important role of party politics in linking constituents to their representatives and the resources controlled by those representatives.
Background: In spite of the large number of anti-corruption reforms implemented in different countries, there has been little research that empirically and systematically assesses the impact of these efforts.
Search methods: The literature search was conducted by querying three widely recognized electronic databases: RePEc, SSRN, and Web of Science. These databases are considered the most comprehensive in the socio-economic field of research. The main grey literature repositories were also queried. Both published and unpublished studies were searched on the basis of specific combinations of keywords. The terms used to define queries were based on the "types of corruption", "types of interventions/policies/reforms" and "study design" search strings. Specific conventions were used to "explode" or "truncate" keywords as appropriate. Screening of the references (i.e., snowballing) of the identified studies was also performed, and a reverse snowballing approach on Google Scholar was used. In order to ensure replicability, all searches were stored into Covidence, an online software developed by the Cochrane community for screening studies and extracting data for systematic reviews.
Results: The initial literature search led to the identification of 70 studies. Approximately one-third of the studies were excluded at the title/abstract stage because they either did not evaluate any anti-corruption intervention but simply assessed the relationship between corruption and other phenomena, or because the study design was not based on randomized controlled trials. Another 14 studies were excluded only after a full-text assessment. At this stage, the main reasons for exclusion were related to an unsuitable type of corruption (e.g., when the focus of the paper was political corruption, or private-to-private corruption instead of administrative corruption), the lack of regression output, or an unsuitable study design. At the end of the selection process, 29 studies resulted as eligible for inclusion.All the selected studies were written in English. The publication years ranged from 2007 to 2018. The majority of the selected studies (20) investigates the effect of anti-corruption interventions in high- and upper-middle income countries (Austria, Brazil, Canada, China, Germany, Italy, Mexico, the Netherlands, Thailand, the United Kingdom, and the United States). Nine studies focused on low- and low-middle income countries (Burkina Faso, Burundi, Ethiopia, India, Indonesia, Pakistan, Tanzania, and Uganda). All of them were randomized experiments. Twenty-five of these experiments were conducted in a laboratory, while four of them were field experiments.As to the type of outcome, the majority (18) of the selected studies addressed bribery (either active or passive), while 11 studies considered misappropriation of public resources (embezzlement). In terms of anti-corruption interventions, 19 studies tested the effect of deterrence interventions, while 10 studies focused on policies based on organizational and cultural change.Overall, the meta-analysis' findings indicate that the identified interventions decrease the level of corruption. Results are statistically significant (p < 0.01) and robust to different heterogeneity estimators-that is, (restricted) maximum likelihood and method of moment estimators. The observed high level of heterogeneity- I 2 is equal to 92.36%, of which 43.78% is due to between-study heterogeneity and 48.57% to within-study heterogeneity-albeit in line with other meta-analyses in economics, suggests the need for meta-regression analyses.To investigate the determinants behind the between- and within-study heterogeneity of the observed effect, both a random effect model and a multilevel model were adopted.The results of the multilevel model show that: 1)Control and deterrence interventions are more effective than organizational and cultural reforms in reducing corruption in the public sector.2)Combining different interventions reduces corruption more than single interventions.3)Interventions are more effective in preventing misappropriation of public resources (embezzlement) than passive or active bribery. Finally, the Funnel Asymmetry Test (FAT), conducted with both additive and multiplicative dispersion terms, shows no evidence of a strong publication bias in the literature.
If the goal of demonetization was to reduce black money, a gradual and steady withdrawal of high-denomination notes would have perhaps served the purpose better. If the objective was to make the country more tax-compliant, then it would have been better to pursue administrative reforms in taxation and increased automation of processes, along with amnesty plans and customer education. Some argue that the Tax Department now has information about who has money, and thus demonetization can help find those guilty of tax evasion. But to make use of this information, the country needs corruption-free, effective tax administration (which was part of the original problem Modi sought to correct). The success of the nationwide GST in bringing more people under the tax net, and increasing both direct and indirect tax collections, is proof that there are better ways to bell the cat. India is now moving faster toward cashless transactions. However, the government had been making moves to digitize before demonetization. Aadhaar (a unique identification number for each Indian), Jan Dhan (universal banking), UPI (unified payments interface), and many other initiatives were already underway. It would have been better to push through those plans gradually, bearing in mind the needs of the weakest sections of society. be457b7860
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