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January-February 2003
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Path Breaking Research

Health – the most corrupt sector

Corruption in India

A study done in over 10 sectors of India shows that India pays 267 billion rupees bribe, with health and education sectors being the most corrupt. The survey is about the outflow of corruption and not an index of corruption levels.

Transparency International, a non governmental organisation (NGO) along with ORG MARG – a professional marketing and research organisation, conducted an All India survey to assess the presence and extent of corruption in various sectors of public domain and its impact on people. In all, 5157 people were interviewed all across the country and it covered sectors like education, police, health, land administration, judiciary, power, taxation, railways, telecom and ration. Though the police sector has been found to be the most corrupt sector, when seen in terms of the basis of actual experience, it is the health sector, which is most corrupt. A total of Rs. 7578 crores was paid as a bribe in the health sector by 25 per cent of the surveyed population. Bribing for getting admission to hospitals lead with non-proper care by doctors and nurses and also in terms of non proper supply of medicine, food etc. Payment to staff to gain admission to hospital is the most common corrupt practice in health care. Such payments are higher in southern India. "The key actors leading to corruption in this sector across zones are allegedly doctors (77%) followed closely by hospital staff (67%)," says the report. Lack of accountability and monopoly power were cited as the main reason for corruption. Nearly 23 per cent of the respondents felt that shortage of essential resources breed corruption.

Sectorwise outflow of coruption

Major actors in corruption in the health sector

Sectorwise outflow of coruption

Major actors in corruption in the health sector

The report revealed that there is a very high correlation between Corruption Perception Index (CPI) and Human Development Index (HDI). Countries, which are more corrupt, are less developed. According to the CPI, India ranks 71st among 102 countries that were covered in 2002. Though CPI is not based on hard data, it does help in identifying areas that need to be strengthened in terms of proper delivery and implementation.

Says R H Tahiliani, chief, Transparency International India, "These revelations are a cause for concern because nearly two-thirds of the 19.3 million public servants are involved in the 10 sectors. The impression that health and education are the two most corrupt areas arose because more people have of necessity to interact with the health and education sectors than say with the police, PDS, or railways. The share of health and education from the total amount of money paid as bribes by people - a staggering Rs 26,728 crore — is therefore much higher."

References:

Corruption in India – an empirical study 2002, Transparency International India and ORG-MARG Research Private Limited, December 17, New Delhi, pp 46.


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