One need not necessarily believe in all the International indices that
are prepared. Especially in areas where one does not have tangible parameters
to quantify them. That said, it is nevertheless a pointer as to what our
position in the world is. One such is the Corruption
Perception Index (CPI) published by Transparency
International (TI). The last Index published in January 2023 was for the
year 2022. In this index 180 countries were ranked by TI and on this India were ranked 87 out of 180 with a score of 40.
In that report, the USA ranks 24th in the CPI with a score of
69. The index varies between 0 for completely corrupt and 100 for completely
clean countries. While Denmark stands out as the country with minimal
corruption with a score of 90, Somalia turns out to be the worst with a score
of a mere 12.
All of us know that corruption abounds in India, but how does it compare
to say the United States. Now the USA has got Independence for 247 years ago, while
India had it only for 75 years now. So obviously if we take the current figures
for both, then they become simply incomparable.
What happens if we push back the time of the US to 75 years after it
obtained independence? That would bring it to the year 1851. No doubt the
dynamics of the two economies are entirely different, at the same time the
comparison would then be more valid than what it would be now which merely
depends on the current perception figures and nothing else.
If we push back the US to 1851, what were the conditions then? We cannot
get the circumstances of that year now, but we certainly have the picture of
the Gilded Age of the US which started in 1865 after the Civil War and
continued till 1896. This was the time when the US grew to be the world’s
leading Industrial Power.
If we read about corruption in that gilded age, we would be shell
shocked. The Corporate Companies became all powerful in the US then and could
buy anything they wanted including politicians of course. This was the most
corrupt era in American History. It became a government by the Corporations, of
the Corporations and for the Corporations. Politicians took huge bribes from
Corporations and demanded kickbacks from them for the help they rendered.
Amazingly Railroads were the ones which generated the maximum amount of
corruption in the USA. (Luckily for us we never had that problem as they are
owned by the Government). The Federal Government helped the Railway projects by
granting more than 150 million acres of land to railroad Companies which sold
them to raise revenue.
These companies were more than willing to bribe Government officials. The
Central Pacific Railroad alone spent USD 500,000 (in the 1870’s or thereabouts)
each year in bribes. The executives of
one railroad together formed a sham construction company and submitted bills
for double the cost than the work done. To avoid any problem and investigation
the railroad officials bribed 12 influential Congressmen by allotting them
their Company’s shares at far below market prices.
In the Whiskey Ring scandal both federal agents and distillers under
reported sales revenue to escape paying Excise duty. In an attempt to corner the Gold market, one
Wall Street Financier and Railroad magnate bribed the brother in law of
President Ulysses S Grant (President 1869-1877) so that the policies of the
President are directed towards his plan.
Many public officials of that time did not rely on salaries for income
(just like many of our own Government officials do now) but relied on a cut of
fees or taxes they collected.
Most postmasters earned a percentage on the stamps they sold and Public
Prosecutors received fees for each case they brought. This deteriorated into
bribery and fraud.
New York City’s Tammany Hall (main
local political machine of the Democratic party) gained great power and
kickbacks in granting these highly lucrative public offices as plums. They also
fixed elections, committed widespread voter fraud and took lavish bribes in
awarding contracts. Tammany Hall leader William Boss made between USD 45 to 200
million on this before he was convicted on 204 cases of fraud. Politicians used
their inside knowledge of where public works would be built and indulged in
highly profitable land speculation. (This sounds too much like our current
local political dispensations)
Only the dawn of the 20th century brought out all this
corruption that was flourishing then. Tough press reporters exposed corruption
and paved the way for enactment of reforms by President Roosevelt.
Looking at all the above, one can clearly see the similarities todays
corruption in India has with that of the USA at that time.
I have never checked this aspect before and what I found about the US
really relieves me. India does have a chance to come out of this huge mire of
corruption it is in now. Without this input otherwise I had come to the
conclusion that corruption in India can never be eradicated.
So we do have a chance after all. If the USA could climb out of all that
mess, so can we. But for that I think a very active press is required,
unfortunately the press in India is now owned or strongly influenced by
political parties and it easily falls into line with its political masters. Hopefully
some Robinhood’s from the press may emerge to help cleanse the system.
Which individual alone can correct the society singlehandedly? It is
just not possible until more favourable conditions emerge. Corruption is like a
Hydra and has multiple heads which can regenerate effortlessly. So all we can
do now is to wait and watch for the right circumstances to emerge. No doubt strong
political leaders make a difference, but they alone are not enough if the
conditions are not conducive.
