IndoCarib
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Corruption, especially in high places, is eating up Indias gross domestic product (GDP) growth by at least 1.5% each year. This figure has been calculated in an internal report of the Planning Commission and points to similar concerns voiced by top business leaders of the country in the recent past.
If we could have reduced corruption, we could have clocked GDP growth of anywhere between 8.5% and 10%, Infosys chairman emeritus NR Narayana Murthy had said, supporting Anna Hazares campaign.
Azim Premji, chairman of IT major Wipro, had said the same thing earlier this week. If corruption levels in India were reduced to that in the Scandinavian countries, investment rate will increase annually by some 12 percentage points and GDP growth by almost 1.5% each year, the plan panels report said.
Indias Corruption Perception Index in 2009 was 3.4 whereas that of the Scandinavian countries Denmark, Norway and Sweden was 9.03. Even if India improves its corruption perception by 2.38 points, GDP growth will improve by 0.5 %.
That is achievable with countries such as North Korea, Cyprus and Zimbabwe improving their corruption index among 213 economies reported by Transparency International, the report said.
The study, done under former cabinet secretary BK Chaturvedi, now a panel member, has recommended deletion of article 311 of the Constitution, which provides protection to civil servants against dismissal.
It also wants ombudsmen at local levels for quick action against corrupt officials and special courts to decide cases of corruption within six months.
Graft costing India 1.5% of GDP growth each year - Hindustan Times
---------- Post added at 05:35 PM ---------- Previous post was at 05:34 PM ----------
If we could have reduced corruption, we could have clocked GDP growth of anywhere between 8.5% and 10%, Infosys chairman emeritus NR Narayana Murthy had said, supporting Anna Hazares campaign.
Azim Premji, chairman of IT major Wipro, had said the same thing earlier this week. If corruption levels in India were reduced to that in the Scandinavian countries, investment rate will increase annually by some 12 percentage points and GDP growth by almost 1.5% each year, the plan panels report said.
Indias Corruption Perception Index in 2009 was 3.4 whereas that of the Scandinavian countries Denmark, Norway and Sweden was 9.03. Even if India improves its corruption perception by 2.38 points, GDP growth will improve by 0.5 %.
That is achievable with countries such as North Korea, Cyprus and Zimbabwe improving their corruption index among 213 economies reported by Transparency International, the report said.
The study, done under former cabinet secretary BK Chaturvedi, now a panel member, has recommended deletion of article 311 of the Constitution, which provides protection to civil servants against dismissal.
It also wants ombudsmen at local levels for quick action against corrupt officials and special courts to decide cases of corruption within six months.
Graft costing India 1.5% of GDP growth each year - Hindustan Times
---------- Post added at 05:35 PM ---------- Previous post was at 05:34 PM ----------
