26-06-2012, 06:11 PM
Rising Prices and Corruption
India is faced today with one of the most critical economic situations. At no other time did Indians witness the horrible pheno¬menon of spiralling prices as they do today, prices are soaring like rackets and each day one finds a rise in prices of more or less all essential commodities. Inflationary pressures are doing plenty of mischief and the people of middle class families are finding it a Himalayan task to make both ends meet.
In a developing economy, prices usually display an upward trend. But if prices keep rising persistently, they cause great hard¬ship to the people. They spare neither the rich nor the poor, neither the producers nor the consumer. They make economic activities uncertain and unstable, causing great unrest in the minds of the people.
Prices are expressed in terms of money. When the rupee or any other currency buys much less than what it used to, and more is to be paid for practically every item, then the problem of rising prices comes into being. In economic terminology it is known as 'Inflation'. Where the balance between money supply on the one hand and goods and services on the other is disturbed, a critical problem arises. “If money supply increases more than goods then services available prices will rise.” The fixed-income groups like salaried people, wage-earners and pensioners are the most helpless victims of inflation. As prices rise, their real income gets eroded.
In a developing economy a certain rise in prices in inevitable for at least three major reasons:-
• First, the programmes of econo¬mic development generate larger employment and money incomes and these increases the demand for basic consumer goods and services.
• Secondly, the same programmes of economic development as generate the new money incomes push-up the demand for certain goods wanted also by the consumer, such as agricultural products, fuel, housing materials and the like.
• A third reason, of which the first two may be looked upon as special cases, is the large increase in currency in emulation and the operation of the law of supply and demand.
Our government is quite conscious of the magnitude and implications of the problem. It has already initiated a number of steps to check inflationary tendencies. What we now need is a strict enforcement of these steps. Apart from accelerating growth and imposing curbs on money supply, we need an effective distribution system. We also need the support of the social workers and other public minded citizens to keep a watch on the unethical practices of shopkeepers. But nothing can mitigate the situation unless the growth of our population is checked.
With this another major problem is of Corruption which we are dealing now-a-days. Corruption is today a world-wide phenomenon. In our own country some people in high positions have been charged for it. A corrupt person is termed immoral, dishonest and unscrupulous in his dealings. His disregard for honesty, righteousness and truth results in his alienation from society. He is treated with contempt. But as erosion of values leads to decadence, remedies for the social malaise remain elusive, and so no amount of contempt can eradicate corruption which is a symptom of decadence. Corruption is the most virulent when crises everywhere threaten the very existence of the society and the faith in life is shaken. It has always been there like tie leech, but when the system grows weaker and the boat flounders, it gets bolder and drains its victims of the last drops of their blood.
Corruption is often attributed to the low salaries of civil servants. This differentiates between need driven (satisfying basic requirements for survival) corruption and greed driven (satisfying desires for status and comfort that salaries cannot match) corruption.
It may be true that it is more difficult to stay honest, hard-working and trustworthy on a low salary, but it is also true that most people with low salaries are still able to do so and that many corrupt officials are people in high, responsible positions, earning good salaries. However, low salaries are not a valid reason for and do not justify corruption. Corruption takes place in institutions where public officials:
• Have great authority;
• Can exercise discretion with respect to interpretation and application of regulations;
• Are not required to be accountable to anyone; and
• Are driven by greed.
Therefore, an environment with a higher range of discretion without accountability is more conducive to corruption. If corruption occurs on the top level and the political leadership of the country does not set a good example with respect to honesty, credibility, transparency, integrity and the persecution of offenders, citizens become disillusioned and offenders are not deterred from entering into corrupt practices. Corruption is a universal phenomenon and exists in all countries; it is a more serious matter in developing countries. The socio-economic conditions in low income countries are more conducive to the growth of corruption. Corruption is a symptom of deep-rooted economic and political weaknesses and shortcomings in the legislative and judicial system of the country.
The steps should be taken to correct the situation overall. Declarations of property and assets of the government employees are made compulsory and routine and surprise inspections and raids be conducted at certain intervals.
Though it is very difficult to control corruption but it is not impossible. It is not only the responsibility of the government but ours too. We can eliminate corruption if there will be joint effort. We must have some high principles to follow so that we may be models for the coming generation. Let us take a view to create an atmosphere free from corruption. That will be our highest achievement as human beings.