The complexity of corruption and recent trends in information technology for combating corruption in India

Abstract

Purpose

The paper examines the recent trends in information technology for combating corruption and its impact on the Indian economy. It further explores how technology is being used to tackle corruption in India and the resulting economic benefits.

Design/methodology/approach

The methodology encompasses qualitative analysis to investigate corruption comprehensively. It involves content analysis of corruption-related documents, case studies, and expert interviews. Recent information technological advancements are explored, including blockchain and AI, for their anti-corruption potential.

Findings

This study reveals that the negative impacts of corruption on society include reduced economic growth, weakened institutions, and decreased public trust in government. Various technological advancements such as e-governance, blockchain, AI, and big data analytics have been implemented to enhance transparency and accountability in government processes. Special cases and examples of application of such technology tools and techniques adopted by the organizations to control corruption are discussed.

Originality/value

This paper highlights the need for legal reforms, institutional strengthening, and awareness-raising campaigns to complement technological advancements in the fight against corruption.

Citation

Sakuntala, S.S., Sarakanam, S., Dhavan, A., Taggar, R. and Kohli, G. (2024), "The complexity of corruption and recent trends in information technology for combating corruption in India", Public Administration and Policy: An Asia-Pacific Journal, Vol. 27 No. 2, pp. 126-139. https://doi.org/10.1108/PAP-05-2023-0058

Introduction

Corruption is a severe problem in India, affecting all aspects of society, including the government, businesses, and individuals. India has consistently received low rankings in various international corruption indices, including the Corruption Perception Index (CPI) published by Transparency International. According to the 2021 CPI, India ranks 86^th out of 180 countries, with a score of 40 out of 100. This indicator evaluates 180 nations and territories based on the perceptions of experts and businesspeople regarding public sector corruption, using a scale of 0 to 100, where 0 represents very corrupt and 100 signifies very clean (Express News Service, 2022). Corruption in India can be considered as the misuse of public office or resources for personal gain. It manifests in various forms, including bribery, extortion, nepotism, and embezzlement. It is prevalent at every level of government, from municipal to federal, with bribery being the most common form of wrongdoing, where individuals offer officials currency or other incentives to obtain a service or favor they would not otherwise receive.

Corruption has a detrimental effect on India’s economy and society. It stifles economic progress, undermines the rule of law, and erodes public confidence in the government. Moreover, corruption disproportionately affects the poor and marginalized, who often lack the resources to bribe officials or navigate corrupt systems. The Indian government has implemented various measures to tackle corruption, including the establishment of anti-corruption agencies such as the Central Vigilance Commission and Lokpal. However, these efforts have faced criticism for their limited effectiveness and the need for greater political will to address corruption at the highest levels of government.

Corruption remains a significant challenge in India, demanding sustained efforts to address this issue and build a more transparent and accountable society. Technological advancements have enabled the collection of vast amounts of data on communities, the economy, and the environment at an unprecedented speed. Governments, groups, and individuals are continuously experimenting, inventing, and adapting to keep pace with this “data revolution”, which refers to the volume of data now accessible and technological advancements. This data revolution holds the potential to address critical societal issues, including corruption, by promoting transparency, accountability, and efficiency in government and business transactions.

Methodology

Qualitative analysis has been instrumental in delving into the complexity of corruption, encompassing content analysis of corruption-related documents, case studies of prominent corruption cases, and interviews with experts in the field. To comprehensively investigate this phenomenon, it is imperative to understand the multifaceted nature of corruption, its various forms, and the underlying causes. Additionally, it is essential to explore recent technological advancements adopted in the fight against corruption and to assess their effectiveness. This methodological approach involves an in-depth review of the literature to establish a solid understanding of corruption theories, typologies, and factors influencing corruption. It also explores the literature on emerging technologies such as blockchain, artificial intelligence, data analytics, and open data and their applications in anti-corruption efforts.

Data for this study are collected from various sources, including:

• - Corruption data: information on corruption levels, indices, and cases is gathered from reputable sources such as Transparency International, the World Bank, and government reports.

• - Technology data: data on recent technological trends and anti-corruption tools are compiled from academic articles, reports, and official websites of relevant organizations.

Literature review on corruption

The 1997 Asian economic crisis left many people astonished not only because of the economic downturn in several Asian nations but also it raised questions about how countries with pervasive corruption had achieved significant economic success before the crisis. Despite the prevailing belief that corruption cannot be a foundation for economic progress, this paradox sparked curiosity. The United Nations Convention Against Corruption (UN General Assembly, 2003) emphasized that corruption is no longer seen solely as a national issue but as a global phenomenon with multifaceted impacts on society.

Corruption has been a persistent issue, similar as a disease (Anand et al., 2004; Husted, 1999). Studies have shown a link between the legitimacy of rule-making and economic growth (Brunetti et al., 1998). Corruption, by directly affecting governance, can trigger distrust in institutions, leading to reduced compliance with government policies (Alfano et al., 2022). However, engaging in corrupt practices may offer immediate benefits to individuals or businesses (Lenway et al., 1996; Ring et al., 1990; Boddewyn, 1988). Corruption poses a complex, pervasive, and multifaceted threat to the common interests of all societies, resulting in significant systemic risks across various sectors, from local to global levels (Helbing, 2013). This is why there is growing interest in management and economics-related studies on corruption (Luo, 2002; Robertson and Watson, 2004; Reinikka and Svensson, 2005).

In many Asian nations, relationships or networks have been highlighted as one of the most effective strategies for conducting business (Peng and Zhou, 2005). Guanxi, a Chinese term, refers to the concept of personal relationships and networks essential for business and other activities in Chinese society, involving the exchange of favors and mutual benefits within a network of trusted connections. Similarly, in the Indian context, although not referred to as guanxi, the importance of building and leveraging personal relationships and networks is deeply ingrained in the culture and society, expressed through terms like jugaad, connections, networking and contacts (Jauregui, 2014).

In India, as in many other cultures, strong personal relationships play a significant role in various aspects of life, including business, politics, and social interactions. Establishing a network of trusted connections can assist individuals in navigating bureaucratic processes, securing deals, accessing resources, and gathering information. However, it is crucial to recognize that while there are similarities between the concepts of guanxi and the emphasis on personal relationships in India, the cultural, social, and historical contexts differ between the two countries. The ways in which relationships are formed, maintained, and utilized can vary, and what works in one cultural context might not directly translate to another. Networking skills, or guanxi, can be a competitive advantage when formal institutions are underdeveloped (Xin and Pearce, 1996). Guanxi is a connection grounded in reciprocal obligations.

Despite the widely accepted view that corruption imposes financial costs on society and is undesirable (Rose-Ackerman, 1999; Mauro, 1995), several Asian countries exhibit significant levels of economic development alongside high levels of corruption, prompting closer examination (Rock and Bonnett, 2004; Wedeman, 2002).

Corruption and its phenomena

Corruption has been a persistent problem in India and has affected the country’s development and progress. In recent years, there has been an increased focus on knowing the causes and effects of corruption in India. This literature review aims to provide an overview of the essential findings and insights from scholarly articles, books and reports on corruption in India. Research from the past demonstrates that the ambiguity in assessing the likelihood of obtaining the preferential treatment promised at the transaction of the bribes is where corruption has its most obvious consequences (Campos et al., 1999; Shleifer and Vishny, 1993; Uhlenbruck et al., 2006). Based on this idea, distinguished between the two types of corruption, they insist that the average chance of coming across a request for a bribe in business transactions reflects the pervasiveness of corruption. In other words, pervasiveness measures the extent to which an individual or organization controls the institutionalization of bribery in a community.

As a result, bribery is more noticeable in societies where corruption is more common. The easier for firms to decide whether to participate in bribery, the more visible it is. One may be sure that bribery would be an intelligent approach to conducting business in that atmosphere if one sees that every company pays bribes. Conversely, when bribery is rare, one may feel secure enough to conduct business without paying off government agents who could impact their enterprise.

While corruption exists worldwide, regional differences exist in how healthy bribery accomplishes the bargains reached (Transparency International, 2020). This is particularly true when we look at the amount of arbitrary corruption linked with it (Wei, 1997). The degree of uncertainty connected to the possibility of receiving agreed-upon favourable treatment in corrupt transactions is known as the arbitrariness of corruption. Although it is still being determined whether favourable treatment will be received, it needs to be clarified whether bribery in commercial transactions is worthwhile. In commercial interactions, the party with discretionary authority providing favourable treatment in exchange for the bribe may arbitrarily alter the situation. For instance, during the negotiation process, government representatives can return and demand more bribes than was first agreed upon.

It might be challenging to know whom to bribe when discretionary authority is divided across several persons or government organizations. This makes paying bribes more difficult and expensive. In such a situation, businesses are still determining whom to pay, what to pay, and if the payments will deliver the promised goods or services. Government officials need more cooperation to make it easier for those who pay bribes to know whether the promised service will be delivered. Since organized corruption is more predictable, contend that while it may be more extractive regarding bribe demands, it may also be less destructive, as Shleifer and Vishny (1993) recommended. Gaining favourable treatment in exchange for bribery is more apparent when an organization’s discretionary authority is concentrated at the top since it cannot reverse agreed-upon accords. Bribery is relatively common in this setting. As a result, businesses may budget for this burdensome tax and make plans.

Complexity of corruption in India

To prevent Indian citizens from participating in politics, the British Raj, which came into effect in 1858, divided the country into districts, each with a provincial administration headed by a commissioner. The Official Secrets Act of 1923 made it unlawful for officials to disclose state information to civilians, ostensibly to gain military and governmental intelligence. Jagdish Bhagwati, a former CFR Senior Fellow for International Economics, claims that India’s corruption has traditionally been fueled by the overabundance of permits (Xu, 2014). The intention behind this was to ensure resource efficiency and prevent the wastage of foreign dollars. Indians have always been acutely aware of how the introduction of licenses and permits contributed to pervasive corruption.

In 2013, India ranked 94^th of 176 nations on Transparency International’s Corruption Perception Index, trailing behind neighbors like China and Sri Lanka but ahead of Mongolia and Colombia. Since the inception of the report in 1995, when the nation was ranked 35^th out of 41, its position has progressively declined. Numerous notable incidents have drawn attention to the severity of the problem. In 2010, allegations emerged regarding gross financial mismanagement during the Commonwealth Games, which ended up costing almost 18 times more than anticipated. Two prominent Congress Party members and other government representatives resigned due to claims of inadequate infrastructure and contract-related financial irregularities. According to the Central Vigilance Commission, there have been approximately $1.8 billion in financial misappropriations (Belluz, 2011).

In 2023, India achieved a score of 39 out of 100, ranking as the 93rd least corrupt nation among 180 countries. Over the years, India’s Corruption Index has averaged 33.64 points, with a peak of 41.00 in 2018 and a low of 26.30 in 1996 (Figure 1). India’s current standing in corruption highlights the urgent necessity for a thorough comprehension of its intricacies and the underlying drivers contributing to it.

Inadequate legal and institutional framework

Corruption in India is deeply rooted in a complex web of factors, encompassing institutional weaknesses, socio-cultural norms, economic conditions, and political structures. India’s legal and institutional framework is in need of strengthening, making it challenging to prosecute and penalize corrupt officials. Conversely, corruption directly undermines the functioning of government organizations as a whole and the judicial system in particular. It impacts the roles and responsibilities of judges, attorneys, prosecutors, and other legal professionals, thereby diminishing the capacity of the judicial system to safeguard human rights (The Times of India, 2021).

• a)

  Political corruption: Corruption in India is intricately connected to political power, with politicians frequently leveraging their influence for personal financial gain. Given that India has one of the highest rates of political corruption globally, this remains a significant concern as it undermines the political system and erodes the authority of the laws governing society (Agarwal, 2007).

• b)

  Socio-cultural norms: Corruption is deeply rooted in India’s culture, where individuals often resort to corrupt practices to secure favors or resources. Empirical studies reveal that cultural and societal factors, including religious traditions, clientelism, human capital, and ethnic fragmentation, exert a significant influence on corruption.

• c)

  Economic factors: Poverty, inequality, and the dearth of economic opportunities have also been identified as drivers of corruption in India.

• d)

  Psychological factors: Individuals are more inclined to engage in corrupt activities when they perceive personal benefits, have limited self-control, believe that corruption inflicts only indirect harm, and work within institutions where unethical behaviour goes unpunished (Dupuy and Neset, 2018).

These multifaceted factors collectively contribute to the persistence of corruption in India, necessitating comprehensive efforts to address this deeply entrenched issue.

Consequences of corruption in India

• a)

  Undermining economic growth: Corruption undermines economic growth by reducing investment, increasing costs, and decreasing the efficiency of public institutions. Furthermore, for governments to function effectively, they must coordinate the supply of public goods and services. The government relies on a taxation scheme to fund these essential functions.

• b)

  Weakening democratic institutions: Corruption weakens democratic institutions by eroding public trust in government and undermining the rule of law. Also distorts the allocation of public spending; corrupt governments tend to spend less on education because there are fewer opportunities for bribes in this category of expenditures. “Another argument is that democracies develop norms and a culture of resolving conflict through negotiation and compromise, which similarly also affect their international relations.” (Kolstad and Arne, 2015, p. 1203).

• c)

  Increasing inequality: Corruption perpetuates inequality by granting the affluent and influential access to resources and services that are denied to those in poverty. Corruption also influences income inequality and poverty through various channels, including overall economic development, discriminatory tax laws, and poorly targeted social programs. Additionally, it may affect disparities in educational attainment, asset ownership, and factor accumulation uncertainty. High levels of corruption can contribute to high poverty rates for two reasons. First, studies show that higher growth is associated with faster poverty reduction (Ravallion, 1997), and corruption hampers development, slowing down poverty eradication. Second, it has been established that income inequality is detrimental to growth. Therefore, if corruption widens income inequality, it hinders growth, making it more difficult to reduce poverty (Ravallion, 1997).

• d)

  Hindering social development: Corruption hinders social development by diverting resources from education, health, and other public services. According to the UN, “Corruption affects all areas of society. Preventing corruption unlocks progress towards the Sustainable Development Goals, helps protect our planet, creates jobs, achieves gender equality, and secures wider access to essential services such as healthcare and education” (Habibullah, 2021, p. 1).

Information technology for combating corruption

Several recent trends in technology for combating corruption have significantly impacted the Indian economy. Some key trends in this area include:

E-Governance

The Indian government has increasingly utilized technology to provide citizen-centric services, including e-filing of taxes, online bill payments, and e-governance portals. This has reduced the need for intermediaries, making processes more transparent and efficient, thus reducing the opportunities for corruption.

E-governance, aimed at improving the effectiveness and efficiency of government operations through technology, can combat corruption in several ways:

• -

  Transparency: E-governance promotes transparency by making information easily accessible to citizens. By publishing information about government procedures, services, budgets, and transactions online, e-governance ensures government activities are open to public scrutiny, reducing opportunities for corrupt practices.

• -

  Automation: E-governance automates many government processes, reducing the need for human intervention and minimizing opportunities for corruption. For instance, online tax filing systems reduce interactions with tax officials, reducing opportunities for corruption.

• -

  Accountability: E-governance promotes accountability by establishing clear rules and procedures for government operations and enabling citizens to hold government officials and agencies accountable for their actions. Online complaint and grievance redressal mechanisms allow citizens to report corrupt practices, increasing the likelihood of action against culprits.

• -

  Efficiency: E-governance improves the efficiency of government operations, reducing the time and effort required to access services or complete procedures. This reduces opportunities for corrupt practices, such as demanding bribes to expedite processes.

Bhoomi-computerized land records in Karnataka, India

The “Bhoomi” initiative in the Indian state of Karnataka aims to digitize land records and make them easily accessible to the public. “Bhoomi” is a Kannada word that translates to “land” in English. The Bhoomi project was launched to address issues related to land ownership, transactions, and disputes by digitizing land records and making them available online through an official web portal and potentially a mobile application. It was established to digitize all land records in the state to prevent data corruption and manipulation. The initiative is jointly maintained by the Government of India and the Government of Karnataka (Kavya, 2020). This computerized property ownership data covers the state’s 6.7 million farmers, totaling nearly 20 million entries. Many tasks require the record of tenancy, rights, and crops (RTC), such as obtaining bank loans, which were previously only available through village record keepers upon farmers’ requests. In the manual process, an official oversees 9,000 villages, conducts a crop census three times a year, and manually updates RTC records. Depending on the size of the property, this process takes anywhere from 3 to 30 days. However, the Bhoomi initiative enables users to request an RTC copy by entering their name or plot number online, streamlining the process.

Computer-aided Administration of Registration Department (CARD) in Andhra Pradesh, India

The Computer-aided Administration of Registration Department (CARD) is an e-governance program in Andhra Pradesh. Its primary objective is to reduce process fraud. In Andhra Pradesh, there are 387 registration locations that use manual methods, with 120 million people registering annually. The traditional registration process involved 13 stages, including assessing property value, determining stamp duty, drafting legal documents, verifying them with a sub-registrar, making copies, and recording entries in registers (Kaur and Kamalkant, 2012). For citizens to sell small properties, they had to navigate multiple steps, involving document writers, stamp duty vendors, registration agents, and registration centers. The CARD initiative streamlined this process by digitizing it, making it more efficient and less susceptible to corruption.

Overall, e-governance can help combat corruption by promoting transparency, accountability, and efficiency, reducing opportunities for corrupt practices. However, it is essential to note that e-governance alone may not eliminate corruption, as corrupt practices can persist through other means, such as personal relationships or offline interactions.

CVC - Chief Vigilance Commission website

A dedicated platform called the Central Vigilance Commission (CVC) website facilitates the receipt and investigation of corruption-related complaints. The CVC is an independent agency responsible for investigating complaints and protecting whistle-blowers (Khedekar and Khedekar, 2016). The CVC website represents a highly innovative attempt at e-governance by a government agency tasked with preventing misconduct in the executive branch. Established in 1988 as a constitutional organization on the recommendation of the Supreme Court of India, the CVC created this website to educate the public about corruption, promote “zero tolerance” for corruption, and provide instructions on how to file grievances without fear of retaliation. The website also publishes information about designated officials from various agencies responsible for handling complaints and misconduct data, including a list of corrupt Indian Administrative Service and Revenue Service personnel accused of corruption or penalized.

Digital payments

The move toward a cashless society and the increased use of digital payment methods like Unified Payments Interface (UPI), Google Pay, and Paytm have simplified transaction tracking and reduced opportunities for illegal transactions and money laundering. Digital transactions leave a clear record for every transaction, ensuring full accountability (Upstox, 2022). With every rupee accounted for and maintained within the banking system, digital payments make it challenging to engage in corrupt practices.

Digital payment systems have played a crucial role in combating corruption in India by promoting accountability, transparency, and fewer opportunities for corruption. They have led to:

• -

  Reduction in cash transactions: One of the leading causes of corruption in India is the prevalence of cash transactions (Šumah, 2018). Digital payment systems have significantly reduced the reliance on cash, making it harder for corrupt officials to conceal their activities.

• -

  Increased transparency: Digital payment systems have introduced transparency to transactions, making it easier to track payments and reducing the possibility of illegal activities, such as money laundering (Mckinsey, 2022).

• -

  Promoting financial inclusion: Digital payment systems have enabled the unbanked population to access financial services, reducing their dependence on cash transactions and the likelihood of corruption (The World Bank, 2016).

• -

  Improved accountability: Digital payment systems have made it easier to monitor and track government spending, promoting accountability and reducing opportunities for corruption (The World Bank, 2022).

• -

  Increased efficiency: Digital payment systems have improved the efficiency of transactions, reducing the time and effort required for payments and, in turn, reducing opportunities for corruption (Setor et al., 2021).

In summary, digital payment systems have significantly transformed how transactions are conducted in India, making it more difficult for corrupt officials to engage in corrupt activities.

Blockchain technology

Blockchain is a tamper-proof, decentralized ledger that securely stores and tracks transactions. It has the potential to reduce corruption by ensuring transparency and immutability in transactions. Blockchain technology has gained the attention of development agencies and anti-corruption groups as a potential tool to fight corruption and safeguard public records from fraud and tampering. It has even been linked to the Sustainable Development Goals aimed at achieving formal identification and financial inclusion (Arvik, 2020).

Blockchain technology can potentially combat corruption in India through:

• -

  Transparent and immutable transaction records: Blockchain provides an unchangeable record of transactions, making it challenging for corrupt officials to manipulate or engage in fraudulent activities.

• -

  Decentralized governance: Blockchain eliminates the need for intermediaries and ensures transactions are executed without human intervention, reducing corruption opportunities.

While blockchain technology is not a panacea for corruption in India, it has the potential to be a powerful tool in the fight against corruption. However, widespread technological adoption and integration will require significant investment and infrastructure development.

Artificial Intelligence (AI)

AI-powered tools, such as predictive analytics and machine learning algorithms, can identify patterns and anomalies in financial transactions, aiding in the detection and prevention of corruption. The Council of Europe’s anti-corruption body has recommended the use of IT tools to enhance surveillance systems to combat corruption and money laundering (Council of Europe, 2023). In the financial sector, big data and artificial intelligence are used in various areas, including detecting fraud and money laundering. Indian officials could utilize these innovative tools in their efforts to combat corruption.

AI holds the potential to combat corruption in India through:

• -

  Data analysis: AI is employed across sectors for data analysis, risk assessment, decision-making, chatbots, and fraud detection. It helps identify corruption patterns, develop risk assessment models, and reduce the influence of corrupt individuals.

• -

  Objective decision-making: AI-powered chatbots provide citizens with easy access to information, improving transparency. AI-driven fraud detection systems enable authorities to quickly identify and flag fraudulent transactions, preventing corruption (West, 2022).

Overall, AI has the potential to be a potent tool in the fight against corruption in India. However, its effectiveness will depend on the quality of data and algorithms used, as well as the capacity and willingness of authorities to adopt and integrate these technologies.

Whistle-blower protection

The Indian government has introduced the Whistle-blower Protection Act to shield individuals who report corruption from retaliation. Anyone with knowledge of unlawful, illicit, or fraudulent actions within an organization is considered a whistle-blower. Employees, vendors, freelancers, customers, or anyone aware of questionable business practices can be whistle-blowers. Several programs, such as those developed by the Occupational Safety and Health Administration (OSHA), the Securities and Exchange Commission (SEC), and the Sarbanes-Oxley Act, protect whistle-blowers from retaliation. Federal employees are safeguarded by the Whistle-blower Protection Act of 1989. Technology plays a vital role in this by providing secure, confidential, and anonymous reporting methods.

Whistle-blower protection can be crucial in combating corruption in India by affording individuals the necessary protection to report corrupt practices without fear of retaliation or persecution. In 2014, the Indian government passed the Whistle-blowers Protection Act, which provides legal safeguards for whistle-blowers reporting corruption, misuse of power, or criminal activity within government agencies, public sector companies, or other organizations. The Act shields whistle-blowers from victimization, including dismissal, demotion, suspension, or transfer to another location. Furthermore, the Act imposes penalties on those who retaliate against whistle-blowers and establishes a procedure for reporting corruption or deliberate abuse of authority.

In recent years, some prominent examples have demonstrated the crucial role whistle-blowers play in exposing corruption in India. For instance, in 2010, Satyendra Dubey, an engineer working on a government project, was murdered after he exposed corruption in highway construction. His case prompted calls for strengthening whistle-blower protection in India.

Of all, whistle-blower protection can be instrumental in combating corruption in India. The government’s efforts to establish a legal framework and an independent agency to protect whistle-blowers represent a positive step in the right direction. However, it is important to note, as Jennifer Bussell, an associate professor at the Department of Public Policy, University of California, Berkeley, points out, that technology alone has limitations. Its most significant contribution has been increasing individuals' access to information. In addition to technological advancements, administrative improvements, and local initiatives to expose wrongdoing, along with efforts by organizations like the Comptroller and Auditor General uncovering corruption at the highest levels of government, are all necessary.

It is worth acknowledging that whistle-blowing can sometimes be abused to settle personal scores or manipulate the stock market. To address this issue, audit committees analyze the credibility of complaints. Frivolous complaints may lead to complainants facing up to two years in prison (Upadhyay, 2019).

Conclusion

Effectively combating corruption requires a fundamental shift in strategy. It is crucial to move away from general, global descriptions of corruption, but instead focus on specific issues and how they manifest themselves. This entails accounting for changes in global trade and financial infrastructure, as well as the structure and organization of contemporary states, and how they impact the type of corruption and its potential emergence. Furthermore, these developments have increased public trust in the government, leading to greater participation in democratic processes and improved social welfare. Therefore, it is essential to temper our expectations and be realistic about what can be achieved at various levels.

It is important to highlight, however, that technology alone cannot eliminate corruption. Therefore, our efforts should be comprehensive and encompass legal reforms, institutional strengthening, awareness campaigns, and technological innovations. All these components are necessary to effectively combat corruption.

Corruption in India is a significant issue rooted in institutional weaknesses, socio-cultural norms, economic conditions, and political structures. It undermines economic growth, weakens democratic institutions, increases inequality, and hinders social development. Technology, particularly e-governance, blockchain, artificial intelligence, and whistle-blower protection, can help combat corruption by promoting transparency, accountability, and efficiency. E-governance initiatives in India have resulted in increased transparency, reduced reliance on cash transactions, and streamlined government processes. Blockchain technology offers transparent and immutable transaction records, making it difficult to manipulate or hide corrupt activities. Artificial intelligence tools analyze data, assess risks, make objective decisions, and detect fraudulent activities, aiding in identifying and preventing corruption, especially in financial transactions. Whistle-blower protection laws, facilitated by technology, empower individuals to report corruption safely and anonymously, encouraging greater transparency and accountability.

The paper suggests that India and other countries should prioritize technology-driven initiatives like e-governance, blockchain, and AI to combat corruption. Legal reforms, such as strengthening whistle-blower protection laws, investment in technology infrastructure, capacity building, and collaboration between government agencies, private sector entities, civil society organizations, and international bodies are also crucial for effective anti-corruption strategies.

This paper focuses on corruption in India, focusing on recent technological advancements. It acknowledges that the effectiveness of technology-driven anti-corruption initiatives may be challenging to quantify due to data availability issues. Additionally, the study acknowledges that cultural factors, including attitudes towards corruption and governance, may influence the success of technology-driven interventions, making it specific to India’s context. Future research should explore the long-term impact of technology-driven anti-corruption initiatives in India and other countries, focusing on their contribution to reducing corruption and improving governance. Comparative studies can analyze the effectiveness of different technology-driven approaches, while ethical considerations like data privacy and security should be explored. Behavioral analysis can provide insights into why individuals engage in corruption and how technology influences their decisions. Policy evaluation can inform improvements and refinements.

Figures

Figure 1

India’s Corruption Perception Index Rank (1995-2023). Source: Trading Economics (2023)