Corruption vs Development –India

A series of high-profile corruption scandals has rocked the Indian government in the last few months and is a threat to the development of the country. India ranks 87 out of 178 countries on Transparency International's 2010 Corruption Perceptions Index. A 2010 report from Washington-based think tank Global Financial Integrity blames India's poor governance for the tax evasion and corruption, which result in illicit financial flows from the country of at least $462 billion. Some investment analysts say corruption is already a factor in declining foreign investment --which has been a key to India's growth over the last two decades--and is worrying domestic investors, too. India's surging growth rate of nearly 8.5 percent is also under threat from high inflation, which may further scare off foreign investors. A report from international organizations, including the UN Global Compact, estimates that corruption adds as much as 10 percent to the total cost of doing business globally, and as much as 25 percent to the cost of procuring contracts in developing countries. When it comes to ease of doing business, the World Bank ranks India 134 out of 183 countries in 2011.Corruption also harms poverty-alleviation efforts in India. The World Bank has found corruption the single greatest obstacle to economic and social development. India has a right-to-information law that promises to make government accountable, but whistle blowers have often had a fight on their hands , in several instances paying with their lives.