Rising corruption takes a toll on Indian poor

The survey, called Corruption Perception Index, interviews businessmen and country analysts. It placed Iceland as number one, followed closely by Finland and New Zealand, showing low levels of corruption in these countries. China was 82 in the world rankings showing high corruption in the emerging economic powerhouse.

“Corruption is a major cause of poverty and a barrier to overcome it. The two scourges feed off each other, locking their population in a cycle of misery,’’ said Transparency International Chairman Peter Eigen.

In fact, the survey says corruption is undermining economic growth and sustainable development that would free millions from the poverty trap. Research by TI shows that foreign investment is lower in countries perceived to be corrupt which further hits their chance to prosper.

“When countries improve governance and reduce corruption, they reap a ‘development dividend’ that according to World Bank institute can include improved child mortality rates, higher per capita income and greater literacy.’’

Indian politicians and police were perceived as the most corrupt by those surveyed last year. The survey showed that politicians score highest when compared to other arms of the society for being most corrupt. Police and state legislatures are next in the queue.

The Indian armed forces are perceived as the least corrupt of all.

Interestingly, India is one of the few countries, which has still not signed the United Nations Convention against Corruption that seeks to establish a global legal framework to fight corruption in a more cohesive way.

The UN convention, which will enter into force in December 2005, will expedite the retrieval of stolen funds, push banking centres to take action against money laundering, allow nations to pursue foreign companies and individuals that have committed corrupt acts on their soil, and prohibit bribery of foreign public officials.