The Issue Of Corruption And Income Inequality Essay

1117 Words Oct 15th, 2015 5 Pages
Corruption is not a new phenomenon in India and has been prevalent since time immemorial. However, in recent times it’s in public eye due to its cancerous spread across the length and breadth of the nation. Both the public and the private sectors are infected with corruption, making it an eminent threat to the prosperity of the nation (Bardhan, 1997). It hampers economic growth, results in political instability, social capital and legitimacy, increases income inequality and has tremendous effect on the well-being of the poor (Kéita, 2010). This critical review examines three articles on the issue of corruption and income inequality. Where Charron, Heston and Kumar articles focusses on corruption in India, Gupta, Davoodi and Terme’s article focusses on the issue specific to corruption and income inequality. Hence, the difference also lies in their methodology. Where, Heston and Kumar (2008) undertakes secondary research and presents anecdotal evidence, Charron, Gupta, Davoodi and Terme carry out the empirical study and present robust evidences. The common hypothesis are, i) increases in income reduces corruption, and ii) the higher the corruption, the higher the income inequality.
2. SUMMARY OF THE ARTICLES: First, "Institutional Flaws and Corruption Incentives in India" (2008) by Heston and Kumar, focusses on the issues of petty corruption and the poor. They accentuate that India will not be able achieve its full economic potential if a large population cannot…

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