Cynical Arithmetic of Corruption and Development

A former Prime Minister of India, late Rajiv Gandhi, made the startling revelation that out of One hundred Rupees released by the Government only fifteen rupees reach the target, rest of it is pocketed unethically by a plethora of intermediaries. So, he lamented that the financial effectiveness of utilization of funds intended for developmental activities is 15% only. Ironically, as per the general belief, there is little improvement in the situation even after quarter of a century. Lamentably, an impressive succession of Prime Ministers, belonging to different political parties, has not succeeded in curbing the menace.

Cynically speaking, if somehow the delivery is improved to 30% the rate of development may double. Surely, the level of pilferage of public money will still be an unconscionable 70%. Further, if the levels of delivery are improved to 45% or 60%, the rate of development would triple or quadruple respectively, though the level of corruption will remain unacceptably high.