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South Asia’s fight against Corruption

Samali Fernando

Corruption refers to the abuse of power for personal gain, often at the expense of fairness, justice, or the public good. It occurs when individuals, usually in positions of power, engage in unethical or illegal behavior to benefit themselves, their families, or their associates.

The history of corruption is as old as human society itself and can be traced back to the earliest forms of governance and power structures such as ancient Egypt, ancient Greece, Ancient Rome, Ancient China, Mesopotamia and Ancient India. While corruption has evolved over time, its core characteristic of abuse of power for personal gain has remained consistent throughout history.

Corruption is a significant challenge in South Asia which comprises India, Pakistan, Bangladesh, Nepal, Sri Lanka, and Maldives. It affects both the public and private sectors undermining governance, economic development, and public trust. South Asia has some of the highest levels of perceived corruption in the world, as reflected in various global corruption indices, such as the Corruption Perceptions Index (CPI) by Transparency International.

Anti-corruption efforts are crucial for South Asia due to the profound impact corruption has on economic development, social equity, and political stability.

Types of Corruption and their costs.

Bribery - refers to offering, giving, receiving, or soliciting something of value (money, gifts, or favors) with the intent to influence actions, decisions, or behavior in a way that benefits the individual offering the bribe. Bribery occurs in both private and public sectors. For example, a company may bribe a government official to obtain a contract, or an individual may bribe a law enforcement officer to avoid punishment. Resources that could be used for public services, development projects, and infrastructure are often misallocated due to corruption, resulting in poor economic growth.

Embezzlement - a form of corruption that involves the misappropriation or theft of funds or resources entrusted to someone's care, typically by an employee, official, or someone in a position of trust. Some examples of embezzlement are corporate embezzlement, government embezzlement and nonprofit embezzlement. In countries or organizations with widespread embezzlement, leaders may be removed from office, or entire administrations may collapse, leading to power struggles and dysfunction.

Nepotism - a form of corruption or unethical behavior where individuals in positions of power favor their family members, relatives, or close friends when making decisions, particularly regarding hiring, promotions, or distribution of resources at the expense of fairness, merit, and equal opportunity for others. This practice often occurs in government positions, businesses, educational institutions, and non-profit organizations. This challenges the principles of meritocracy, where advancement should be based on capability. When unqualified people are given jobs or responsibilities due to nepotism, it can lead to inefficiency and poor decision-making within organizations or governments, as these individuals may lack the skills necessary to perform their roles effectively. Nepotism widens social divisions by excluding others from opportunities creating a sense of injustice.

Election rigging and voter manipulation - forms of electoral fraud that undermine the democratic process by influencing the results of an election through illegal, unethical, or deceptive means. This can take various forms such as ballot tampering, vote counting fraud, manipulating voter rolls, and electoral fraud in the voting process.


Corruption in South Asia

Corruption remains a significant challenge across South Asia, affecting various sectors and hindering development.

According to the 2023 Corruption Perception Index[1],

●      Bangladesh scored 24 out of 100, ranking 149th out of 180 countries, indicating a high perception of corruption. This positions Bangladesh as the second-most corrupt country in South Asia, following Afghanistan.

●      Sri Lanka scored 34 in the 2023 CPI, ranking 115th globally. The country's score has declined since 2020, reflecting increasing concerns about corruption.

A Transparency International survey [2]revealed that

●      Law enforcement authorities are perceived as the most corrupt public institutions in Bangladesh, India, Pakistan, Nepal, and Sri Lanka.

●      The judiciary was identified as the second most corrupt area in all countries except Pakistan.

These statistics highlight the pervasive nature of corruption in South Asia, underscoring the need for comprehensive anti-corruption measures to promote transparency and good governance across the region.


Factors affecting Corruption in South Asia

Corruption in South Asia is deeply embedded due to a combination of cultural, historical, and systemic factors.

Patronage systems, for example, favor relatives or community members in government appointments or business deals and offer gifts as a sign of respect to public officials to "smooth" bureaucratic processes normalizing corrupt exchanges under the guise of cultural etiquette.

Colonial administrations often institutionalized corruption by exploiting resources and creating bureaucratic systems that served the ruling elite. An example of this historical factor is the British colonial policies in India, where local officials collected excessive taxes and kept portions for themselves.

Another historical factor is post – independence political instability where weak state institutions and frequent regime changes in the post-colonial period created environments for politicians to use public funds for personal gain during political transitions. An example of this is the partition of India and Pakistan in 1947. Fragile governance allowed corruption to thrive during periods of nation-building.

Weak institutions consisting of inefficient bureaucracies and inadequate checks and balances enable corruption without fear of consequences. High levels of poverty and unemployment push people to use corrupt means for survival or advancement such as when low-level officials accept bribes due to inadequate salaries.


Impact of Corruption in South Asia

Economic Impact

Due to corruption, South Asia suffers from stunted economic growth. Corruption diverts resources away from productive uses and reduces overall economic efficiency. [3]Investors lose confidence when uncertainty is caused by corrupt practices discouraging foreign direct investment (FDI).  Local entrepreneurs are discouraged since corruption leads to inefficiencies in public services and infrastructure projects.

For instance, corruption in managing state-owned enterprises (SOEs) like Sri Lankan Airlines[4] and the Ceylon Petroleum Corporation[5] has contributed to massive financial losses. In Nepal, businesses often collude with tax officials to underreport income, leading to revenue losses in both direct and indirect taxes. Mismanagement of funds due to corruption often results in excessive borrowing to cover deficits. Corrupt practices in governance and public procurement have increased Sri Lanka's debt burden. Controversial projects like the Hambantota Port have raised concerns about misallocation of funds and debt diplomacy with foreign lenders[6].

Social Impact

Corruption undermines faith in government, law enforcement, and the judiciary. Perceived favoritism or unequal treatment fosters divisions among different communities, ethnicities, or classes. In India, the Commonwealth Games (2010) corruption scandal[7] where officials misappropriated funds intended for infrastructure and event management led to public outrage and diminished trust in government accountability.

Corruption diverts resources meant for public services like healthcare, education, and welfare leaving marginalized groups underserved. Corrupt practices allow elites to amass wealth at the expense of the broader population. A study[8]revealed that in Bangladesh, 58% of households reported paying bribes to access basic public services such as healthcare, electricity, and education. Unfortunately, this burden falls disproportionately on poorer communities.

Political Impact

Corruption impacts political systems in South Asia mainly through weakening democratic processes and governance and enabling authoritarianism and political instability. Political corruption during elections, including vote-buying and bribery, has eroded public confidence in the electoral process. In Pakistan, the courts have been accused of selectively targeting opposition figures through disqualification and corruption cases[9]. It has historically been complicit in legitimizing military coups, as seen with the validation of martial law in the history of Pakistan.

Political corruption in South Asia enables authoritarianism and political instability. In Sri Lanka, corruption among ruling elites, including the misuse of public resources and nepotism, contributed to political authoritarianism under the Rajapaksa administration. This led to mass protests during the 2022 economic crisis.


Anti-Corruption Measures in South Asia

India established the Central Vigilance Commission in 1964. It is responsible for addressing corruption in the central government. The CVC has the authority to investigate cases of corruption and recommend disciplinary action against public servants. India has also passed the Whistleblower Protection Act[10] (2014) designed to protect individuals who report corruption and wrongdoing in government organizations from retaliation.

India's Right to Information Act[11] was introduced in 2005 to promote transparency and accountability in government by granting citizens the right to access information held by public authorities. The RTI Act transformed ordinary citizens into active participants in the fight against corruption. By demanding information, citizens exposed corrupt activities and held public officials accountable. RTI requests led to several major corruption exposures, such as the Adarsh Housing Society scam (2010) and Commonwealth Games scam (2010), leading to the resignation of top officials and changes in policies. Public access to government information can significantly deter corrupt behavior by making it harder for officials to misuse power. Ensuring that citizens are aware of their rights and equipped to demand transparency is key to success.

Pakistan founded the National Accountability Bureau in 1999 which is the primary institution charged with investigating corruption cases at both the federal and provincial levels. NAB has powers to arrest suspects, seize assets, and prosecute officials accused of corruption. However, NAB’s effectiveness is often questioned due to allegations of political bias and selective targeting. Pakistan has also passed the Benami Transactions (Prohibition) Act[12] (2017)seeking to combat illicit transactions and money laundering by prohibiting the use of benami (fictitious) names for property transactions.

Sri Lanka established the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in 1994 to investigate corruption within public offices. It has handled several high-profile cases, but its effectiveness has been constrained by limited resources and political interference. Similar to India, Sri Lanka has worked on legislation to protect whistleblowers who expose corruption in public offices.

Bhutan has adopted an e-procurement system that ensures transparency in the bidding process for government contracts. The system allows for online submission of bids, real-time tracking of procurement processes, and clear documentation of decisions. Bhutan’s government has been highly supportive of anti-corruption measures, creating institutions like the Anti-Corruption Commission (ACC), which has been empowered to investigate and prosecute cases of corruption. Bhutan’s strong cultural emphasis on Gross National Happiness[13] (GNH), which includes integrity and transparency as key values, has fostered a society-wide commitment to honesty and fairness.

South Asian governments are also engaged in international anti-corruption efforts through partnerships with organizations like the United Nations, the World Bank, and regional organizations like the South Asian Association for Regional Cooperation (SAARC) entering agreements such as United Nations Convention Against Corruption (UNCAC)

Despite these efforts, several challenges persist such as political interference, weak enforcement, and cultural factors. Even with laws and institutions in place, enforcement remains inconsistent. Political elites often escape accountability due to loopholes or inefficiencies in legal frameworks.


The Role of Civil Society and Media in Combating Corruption in South Asia

In South Asia, civil society, non-governmental organizations (NGOs), and independent media play critical roles in exposing and combating corruption. These sectors act as watchdogs, holding government institutions accountable and advocating for systemic reforms. They also help to raise public awareness and mobilize citizens to demand greater transparency and justice.

NGOs advocate for policy reforms, engage in public awareness campaigns, and sometimes directly investigate corrupt practices. Many NGOs also offer legal support for citizens who have been victims of corruption or who are willing to blow the whistle.

In South Asia, the media is often the first institution to expose large-scale corruption scandals. A free and independent media is key to holding power accountable. Investigative journalism provides the transparency necessary to uncover hidden practices of corruption in both government and business sectors.

Sri Lanka’s Aragalaya movement is an excellent example of the role of civil society and media in combating corruption. The Aragalaya which began in early 2022 was a mass protest against economic mismanagement and corruption, particularly by the then-President Gotabaya Rajapaksa and his administration. Citizens, frustrated by the country’s severe economic crisis, took to the streets to demand the resignation of political leaders, including the President, who was accused of being involved in corrupt practices leading to the collapse of the economy. Unlike many past protests, Aragalaya united a wide range of groups, from students to trade unions, civil society organizations, and even segments of the political elite who were dissatisfied with the regime. Protestors used social media to organize, document abuses, and communicate with a global audience. The presence of independent media, both domestic and international, helped amplify the voices of the protesters, holding corrupt officials accountable.


Technology and Innovation in Fighting Corruption in South Asia

Technology is playing an increasingly important role in fighting corruption across South Asia. Digital tools, blockchain, artificial intelligence (AI), and other innovative technologies can enhance transparency, reduce opportunities for bribery, and improve public sector accountability. By streamlining processes and making systems more open, technology helps tackle corruption from multiple angles, offering innovative solutions to entrenched problems. The adoption of online platforms for tax payments, land registration, and licensing reduces the need for personal interaction with officials, thus curbing bribery and fostering transparency. Additionally, the use of digital payment systems, such as mobile payments, has made financial transactions more traceable, reducing the chances of financial mismanagement or corruption in public offices. India’s Direct Benefit Transfer (DBT) system[14] is a significant success story of using technology to reduce corruption. The DBT system directly transfers government subsidies, welfare benefits, and other financial aid to the bank accounts of beneficiaries, bypassing middlemen and reducing leakages. This has helped prevent corruption by eliminating intermediaries who often siphon off funds.

Recommendations for the Future: Combating Corruption in South Asia

To effectively address corruption in South Asia, a multi-sector approach involving policy reforms, civic education, institutional strengthening, and regional collaboration is essential.

Policy reforms should strengthen anti – corruption institutions. The reach and power of national anti-corruption commissions should be expanded, better training and resources for anti-corruption investigators must be provided and anti-corruption agencies must be evaluated regularly to identify gaps and areas for improvement. South Asian Countries should pass stronger whistleblower protection laws to ensure that individuals who report corruption can do so without fear of retaliation. Public officials who retaliate against whistleblowers should face strict penalties, and whistleblowers should be guaranteed anonymity and protection from harassment. This can be achieved by enforcing stricter penalties for retaliation against whistleblowers, setting up independent channels for reporting corruption safely and offering legal and financial support to whistleblowers who face threats or persecution.

Civic education about the societal costs of corruption through public awareness campaigns, school and university programs, and public engagements is a form of combating corruption in South Asia. Introducing corruption-related topics in the education system will foster ethical behavior from a young age. Engaging younger generations attending school and university in discussions on integrity will help cultivate a culture of value driven leadership. Public forums, debates, and workshops with citizens to discuss the impact of corruption on their daily lives will build a collective commitment to a corruption-free society.

Institutional Strengthening through reforms is another method of combating corruption in South Asia. Strengthening institutions across South Asia requires reducing political interference, increasing transparency, and improving performance management systems. Countries should implement merit-based hiring and evaluation systems for public employees to reduce nepotism and political favoritism. Open budgeting, accessible public records, and independent audits must be introduced to ensure transparency.

Regional Collaboration through cross border partnership is a method to combat corruption in South Asia. By sharing best practices and success stories from anti-corruption efforts, countries can learn from each other’s experiences and avoid common pitfalls. Countries should establish cross-border initiatives to collaborate on anti-corruption strategies and provide mutual support in tackling corruption cases that have transnational implications, such as money laundering or trade-based corruption. Regional conferences and seminars on anti-corruption can facilitate knowledge sharing and collaboration. Joint regional initiatives, such as a South Asian Anti-Corruption Network, will enable collaborative research and action on corruption.  South Asian countries should engage more actively with international anti-corruption organizations, such as the United Nations Convention against Corruption (UNCAC) and Transparency International, to adopt global standards and mechanisms for fighting corruption. By aligning national anti-corruption strategies with international best practices and ensuring that they meet global standards, countries can enhance their credibility and make it easier to cooperate with international enforcement agencies in cross-border corruption cases.


Conclusion

While the road to eradicating corruption is challenging, it is not insurmountable. With strong leadership, sustained efforts from all sectors of society, and robust legal and institutional frameworks, it is possible to reduce corruption's grip on societies. The collective will to fight corruption is critical, as it empowers citizens, strengthens governance, and paves the way for long-term economic and social development. Ultimately, the fight against corruption is a fight for integrity, accountability, and justice. By addressing corruption head-on, we can create a future where resources are used effectively, public trust is restored, and future generations can live in a fairer, more prosperous world.


[1] (n.d.). CORRUPTION PERCEPTIONS INDEX 2023 [Review of CORRUPTION PERCEPTIONS INDEX 2023]. Transparency International . https://transparencia.org.es/wp-content/uploads/Report_CPI2023_English.pdf

[2] Corruption Survey 2001-2002. (n.d.). Transparency International . https://www.cpalanka.org/wp-content/uploads/2007/8/Corruption_in_SL_English.pdf

[4] Sri Lankan Airlines — Commentary Archives. (n.d.). Advocata Institute | Sri Lanka | Independent Policy Think Tank. https://www.advocata.org/commentary-archives/tag/Sri+Lankan+Airlines

[5] Ceylon Petroleum Corporation — Commentary Archives. (2023, April 2). Advocata Institute | Sri Lanka | Independent Policy Think Tank. https://www.advocata.org/commentary-archives/tag/Ceylon+Petroleum+Corporation

[6] Carrai, M. A. (2021, June 5). Questioning the Debt-Trap Diplomacy Rhetoric Surrounding Hambantota Port. Georgetown Journal of International Affairs. https://gjia.georgetown.edu/2021/06/05/questioning-the-debt-trap-diplomacy-rhetoric-surrounding-hambantota-port/

[7] Shallow Window Of Opportunity: Examining Scandal Surrounding The Commonwealth Games (CWG) Hosted In India» Lawful Legal. (2025, January 8). Lawful Legal. https://lawfullegal.in/shallow-window-of-opportunity-examining-scandal-surrounding-the-commonwealth-games-cwg-hosted-in-india/

[8] Corruption Is Pervasive in Service Sectors, According to the TIB National Household Survey 2023. (2023). Ti-Bangladesh.org. https://www.ti-bangladesh.org/articles/story/7137

[11] Right to Information. (n.d.). Rti.gov.in. https://rti.gov.in/

[13] Your Questions Answered: What is Bhutan’s Gross National Happiness Index? | Asian Development Blog. (n.d.). Blogs.adb.org. https://blogs.adb.org/blog/your-questions-answered-what-bhutan-s-gross-national-happiness-index

[14] Direct Benefit Transfer – A blessing during the time of Pandemic | National Informatics Centre | India. (2020). Www.nic.in. https://www.nic.in/blog/direct-benefit-transfer-a-blessing-during-the-time-of-pandemic/

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