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This is an archive article published on October 21, 2004

Corruption Perception Index: India ranked 90

Private contractors in India paid more than Rs 32,000 cr—equivalent to 1.25 per cent of India’s GDP—to government officials l...

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Private contractors in India paid more than Rs 32,000 cr—equivalent to 1.25 per cent of India’s GDP—to government officials last year as bribe for securing government contracts, the annual ‘Corruption Perception’ survey conducted by a Berlin-based NGO, revealed. The report was released here at the India International Centre by Transparency International India today.

The ‘Corruption Perception Index’ for the year 2004, compiled by Transparency International, using information provided by a dozen organisations across the world, saw India slipping seven ranks, from 83 to 90 this year, largely due to better performance by other countries.

Though India and China managed to hold on to their old scores of 2.8 and 3.4 in the latest survey, both saw a considerable erosion in their ranking. While India dropped 7 places from 83 to 90—out of a total of 146 countries ranked this year—China saw its comparative credibility eroded from 66 to 71.

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The survey, based entirely on the perception of the business community on the levels of corruption existing in the award of government contracts, also saw Pakistan’s corruption index take a beating of 0.4 points, from 2.5 to 2.1 this year.

Placing the estimated amount of money paid as bribe for securing government contracts at a whopping $400 billion, the study noted that oil producing countries also have high levels of corruption. ‘‘Corruption in large-scale public projects is a daunting obstacle to the sustainable development and results in a major loss of public funds,’’ said Peter Elgen, chairman of Transparency International.

Releasing the report, R.H. Tahiliani, chairman of Transparency International India, pointed out that India needs its own special surveys to deal with the peculiar situation here. He added that his organisation is conducting a comprehensive study of corruption in Indian government departments that deal with the ordinary person. The survey is bing funded by a UK-based organisation.

‘‘The most pressing problem, as far as Indians are concerned, is perhaps not corruption in the award of government contracts. It is more the everyday bribes that they have to pay, to get a driver’s licence, proper treatment at a government hospital etc.,’’ he pointed out. The study is likely to be over by February 2005, he added.

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