Corruption & Economic Growth

B.K. Chaturvedi‚ Shekhar Chandra

The book examines the concept of corruption, its ethical interface and its measurement. It looks at economies of about 150 countries in different income groups and using cross-country regression analysis estimates how corruption impacts their economic growth. In the light of experience of some major global economies, it suggests a strategy for meeting the challenge of political and petty corruption.

It identifies the drag effect of low incomes on ability of countries to lower corruption and focuses on centrality of growth for reducing corruption. It brings out criticality of systemic reforms especially of institutions, participation of community and its education. It strongly emphasises need for laws covering both corruption in the government and private companies, and a fair and independent investigating agency with quick trials of corrupt public servants. The book also gives a brief history of corruption in India, efforts made in recent years and the Lokpal act, with changes required in the current law to address corruption.

“B.K. Chaturvedi and Shekhar Chandra have written a comprehensive book on corruption. They trace the origins of corruption and study its impact on economic growth in a cross-country framework. Corruption leads to incorrect choice of investors, resulting in inefficiency. The authors also come up with interesting suggestions for the modifications in the Indian laws relating to corruption. The book is a sober assessment of the harm that corruption inflicts on the economy and the polity.  A must-read book for all those interested in probity in public life.”
    — C. Rangarajan
        Chairman, Madras School of Economics, Chennai

“This is an important analytical tract on corruption in public life from one of our most distinguished senior civil servants known for his leadership qualities and integrity. Every student of public policy and anyone interested in creating a corruption-free administration should read this book.”
    — Sanjaya Baru
        Director for Geo-economics and Strategy, 
        International Institute for Strategic Studies, New Delhi

B.K. Chaturvedi served as Member, Planning Commission of India (2007- 2014) and of Thirteenth Finance Commission (2007-2009). Starting his career in the Indian Administrative Service in 1966, he rose to the highest position in Civil Service of the country when he was appointed Cabinet Secretary. He worked in that capacity for three years. 

He has experience of functioning of the Government at different levels for more than four decades. He has been Secretary to the Government of India in several Ministries, including Finance, Human Resource Development and Petroleum & Natural Gas for more than six years. He was also a member of the board of UNDP and UNICEF. In 2010, one of India’s highest civilian awards Padma Bhushan was conferred on him by the President of India. 

Shekhar Chandra is an Engineer by training and completed his B.Tech from G.B. Pant University, Uttar Pradesh and two Masters, one each from Indian Institute of Science, Bangalore, and Georgia Institute of Technology, Atlanta, GA. 

He has been working at the intersection of economic growth and environment, especially researching on India’s role in international climate negotiations by combining his analysis of domestic energy challenges with an analysis of the international negotiations, and in particular how India can achieve a fair deal without derailing the process.