Recap and Introduction
Part 1 of this series detailed how reservation, originally an affirmative action policy, has been distorted by electoral politics into a tool that erodes meritocracy and deepens caste divisions, forming the first pillar of a destructive triad with corruption and inflation. Part 2 focuses on corruption, a pervasive force fueled by the financial demands of frequent elections, which undermines ethical governance and public trust. By diverting resources and normalizing unethical behaviour, corruption perpetuates inefficiency and inequality, reinforcing the triad’s impact through its links to reservation and inflation. This part examines corruption’s electoral roots, systemic consequences, societal effects, and proposes targeted reforms to curb its influence, setting the stage for Part 3’s exploration of inflation and broader systemic solutions. Understanding corruption’s role in this cycle is critical to addressing India’s systemic challenges and restoring a governance model rooted in integrity and accountability.
Section II: Corruption – erosion of ethical governance
Roots in Electoral Politics
Corruption in India is deeply rooted in the uncertainties and financial demands of electoral politics. The high cost of elections, often exceeding legal expenditure limits, pushes politicians to engage in corrupt practices such as bribery, embezzlement, and cronyism to fund campaigns and secure their future. The precarious nature of political power, exacerbated by frequent elections every five years, compels politicians to prioritize wealth accumulation to hedge against electoral losses. This dynamic creates a self-reinforcing cycle where corruption becomes a means of electoral survival, undermining ethical governance. The pressure to amass resources for costly campaigns drives politicians to exploit public office, diverting funds from development projects and perpetuating inefficiencies. This cycle, fueled by the short-term imperatives of electoral dynamics, not only erodes trust in governance but also reinforces the triad by enabling reservation manipulation and inflationary populist policies, binding corruption to the broader systemic crises.
Campaign Financing Loopholes and Corruption
The electoral financing system in India is a key driver of corruption, creating a structural dependency on illicit funds. Studies show that political parties report expenditures significantly lower than actual campaign costs, with estimates indicating that true spending often exceeds legal limits by multiple times, reaching thousands of crores collectively across all constituencies, candidates, and parties. Candidates and parties rely on black money, sourced through bribes, or corporate kickbacks, to finance lavish rallies, advertisements, and voter inducements. This financial burden compels politicians to exploit public office to repay donors or amass wealth for future campaigns, creating a vicious cycle of corruption.
Opaque instruments like electoral bonds, introduced in 2018, have exacerbated this issue by allowing anonymous donations, enabling corporate and individual donors to influence policy decisions without accountability. Unlike reservation’s role in consolidating caste-based vote banks (Part 1) or populist spending’s link to inflation (Part 3), campaign financing directly ties corruption to electoral survival. Efforts to reform this system—through measures such as mandating full disclosure of funding sources, enforcing stringent expenditure limits, and auditing party finances—have failed to break this cycle. Given the nature of elections and the mindset of Indian voters, achieving transparent financing to reduce reliance on illicit funds and weaken the electoral incentives perpetuating corruption remains extremely challenging.
Also Read: Reservation, Corruption, & Inflation: Electoral triad undermining India #1
Systemic impact
Corruption permeates every level of governance, from local to national institutions, diverting public resources and distorting policy priorities. High-profile scandals involving politicians across the political spectrum illustrate how corruption erodes trust and undermines public welfare. At the grassroots level, petty corruption—such as bribes for ration cards, licenses, or police services—further alienates citizens, with roots in corrupt recruitment and politically influenced transfers. Estimates suggest that corruption significantly hinders economic development, reducing government revenue and limiting public service delivery. This stifles growth and perpetuates inequality, as resources meant for the disadvantaged are siphoned off. The pervasive nature of corruption, driven by electoral pressures, reinforces the triad by enabling the manipulation of reservation policies and fueling inflationary spending, creating a feedback loop that undermines India’s moral and socio-economic fabric.
Moral decay and societal impact
The normalization of corruption has reshaped societal values, where acquiring wealth through unethical means has become increasingly accepted. Ethical standards, once central to India’s cultural ethos, are sidelined, with corporate malfeasance and regulatory violations becoming widespread. Studies indicate that a significant portion of business leaders engage in unethical practices to meet targets, reflecting a broader societal shift toward self-interest. This moral decay, driven by the pursuit of wealth, creates a self-perpetuating cycle where corruption thrives, further eroding trust in institutions. The linkage to electoral politics is evident, as corrupt practices fund campaigns that promise reservation benefits and populist schemes, perpetuating the triad of reservation, corruption, and inflation. This erosion of ethics undermines the collective welfare, fostering a culture where personal gain overshadows societal good.
Psychological and Cultural Impacts of Corruption
Corruption’s societal toll extends beyond material losses, reshaping individual and collective behaviour in profound ways. Psychologically, citizens exposed to pervasive corruption develop learned helplessness, believing ethical behaviour is futile. Studies found that majority of Indians perceive corruption as an inevitable part of governance, reflecting deep-seated cynicism. This mindset erodes civic engagement, as citizens disengage from public institutions, further weakening accountability.
Culturally, corruption normalises unethical shortcuts, influencing younger generations to prioritise personal gain over integrity. The widespread acceptance of “speed money” to expedite administrative processes has created a societal expectation that bribery is standard practice. This cultural shift, distinct from reservation’s entrenchment of caste identities (Part 1) or inflation’s fostering of materialism (Part 3), undermines India’s traditional values of honesty and collective responsibility, replacing them with a transactional mindset. By funding campaigns that promise short-term electoral gains, corruption perpetuates the triad, eroding the moral foundation needed for nation-building and fostering a culture where ethical governance is increasingly unattainable.
Political Collusion Stifles Anti-Corruption Efforts
Efforts to curb corruption in India are thwarted by entrenched political collusion and institutional erosion, driven by electoral imperatives. Parties campaigning on anti-corruption pledges often descend into worse corruption, perpetuating impunity. The five-year election cycle fosters a transient political landscape, creating a fear of mutually assured destruction among politicians. Pursuing rivals for corruption risks retaliatory investigations when power shifts, leading to an unspoken pact to tolerate misconduct to protect mutual interests. The high cost of elections, often funded through illicit means like bribes and black money, entrenches this dynamic, as parties rely on unaccounted wealth to compete.
Compounding this, the BJP government’s 2019 amendment to the Prevention of Corruption Act, requiring prior government approval for inquiries against public officials, has crippled whatever little independence agencies like the Central Bureau of Investigation (CBI) and State Anti-Corruption Bureaux (ACBs) had. This legislative retreat, partly a reaction to past anti-corruption campaigns against the UPA government, shields the political elite, undermining accountability. These barriers, rooted in electoral politics, perpetuate corruption’s role in the triad, reinforcing inefficiencies and societal divides. Addressing this demands a fundamental reevaluation of India’s governance framework to restore integrity and public trust.
Linkages with Reservation and Inflation
Corruption significantly intersects with reservation and inflation. When reservation policies are manipulated for political gain, they enable candidates to secure positions based on caste rather than merit, fostering corruption. This can cultivate a sense of entitlement, promoting the misuse of public office for personal gain over commitment to integrity and public service. Likewise, corruption fuels inflation by misallocating public funds, increasing government borrowing and expenditure, which drives up prices. The nexus of political incentives links these issues, as corrupt practices finance campaigns promising reservation benefits and populist schemes, exacerbating inflation and perpetuating this interconnected cycle.
Convergence in Electoral Politics
The need to secure votes drives politicians to engage in corrupt practices, as seen in the high cost of elections and the resulting bribery and embezzlement. This nexus is evident in the competitive populism of Indian politics, where parties outbid each other with promises of freebies, quotas, and subsidies. The 2024 general elections saw parties promising everything from free electricity to cash transfers, reflecting the entrenched role of electoral incentives in policy-making. This prioritises short-term electoral success over long-term national interests, perpetuating the triad’s destructive cycle.
Consequences for India’s Moral and Economic Fabric
The triad has fundamentally altered India’s moral landscape. The politicisation of reservation has replaced merit with entitlement, corruption has normalised unethical behaviour, and inflation has fostered a culture of insecurity and materialism. These shifts undermine the values of integrity, fairness, and collective responsibility that once defined Indian society. The nature of the system through which individuals gain opportunities shapes their behaviour and values. Those who benefit from a corrupt or caste-based reservation system are incentivised to perpetuate these practices, using their positions for personal aggrandizement rather than societal good. This dynamic entrenches a culture of self-interest, further eroding India’s moral fabric.
Conclusion
Corruption, driven by the financial demands of electoral politics, erodes India’s ethical governance, diverting resources and normalizing unethical behaviour. As the second pillar of the triad, it reinforces reservation’s inefficiencies and fuels inflationary policies, deepening societal and economic divides. Through opaque campaign financing, moral decay, and entrenched political collusion, corruption perpetuates a cycle of distrust and inequality. The unspoken pact among politicians, fueled by the transient nature of political power and need for illicit funds for election campaigns, stifles anti-corruption efforts, undermining accountability. Addressing these barriers requires rethinking India’s governance framework to prioritise integrity over electoral expediency. Part-3 will explore inflation’s role in exacerbating poverty and propose reforms to break this destructive cycle. Can India restore integrity without rethinking its electoral framework? Share your views as we continue this series.
