CORRUPTION IN INDIA AND THE USA- A COMPARISION WITH AN EMPHASIS ON TIME.

 

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 24^th 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 20^th 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.