Global Business Bribery Risk Rankings

Context: India has slipped to 82nd position in 2021, five places down from 77th rank last year, in a global list that measures business bribery risks.
About the report

• The report measures business bribery risk in 194 countries, territories, and autonomous and semi-autonomous regions

This score is based on four factors

1. Business interactions with the government
2. Anti-bribery deterrence and enforcement
3. Government and civil service transparency
4. Capacity for civil society oversight which includes the role of the media.

Key highlights of the report

• India stood at 82nd position with a score of 44 out of 100.
• Norway, Sweden and New Zealand topped the rankings while North Korea, Turkmenistan and Eritrea were ranked the poorest.

Status of Bribery in India
Causes

• Slow and complicated bureaucratic process.
• Unclear regulatory frameworks.
• Desire to pay lower taxes than those demanded by the state.
• Opaque process and paperwork on the part of the government.

Impact

Loss of credibility

• Sector which is perceived as highly corrupt may lose ground when it comes to fair valuation of its business.

Economic losses

• Inadequacies in institutional efficiency could affect growth indirectly by lowering the private marginal product of capital and investment rate.

Bureaucratic inefficiency also affects growth directly through misallocation of investments in the economy.

• Corruption results in lower economic growth for a given level of income.

Provisions to combat bribery
Prevention of Money Laundering Act, 2002

• Aims to prevent instances of money laundering and prohibits use of the 'proceeds of crime' in India.

The Companies Act, 2013 (Companies Act)

• It provides for corporate governance and prevention of corruption and fraud in the corporate sector.

The Indian Penal Code, 1860

• It sets out provisions which can be interpreted to cover bribery and fraud matters, including offences relating to criminal breach of trust and cheating.

The Foreign Contribution (Regulation) Act, 2010

• It regulates the acceptance and use of foreign contributions and hospitality by individuals and corporations.

The Lokpal and Lokayuktas Act, 2013

• It provides for an establishment of an ombudsman for the central and state governments (Lokpal and Lokayuktas, respectively).
• These bodies are required to act independently from the government and have been empowered to investigate allegations of corruption against public servants, which include the prime minister and other ministers.