Corruption In India: An Analysis Of The Changes Caused By Economic Reforms

Open Access
Sathi, Siddarth K
Area of Honors:
Bachelor of Arts
Document Type:
Thesis Supervisors:
  • Bee Yan Roberts, Thesis Supervisor
  • Russell Paul Chuderewicz, Honors Advisor
  • Corruption
  • Sathi
In this paper, I examine how and why the nature of corruption in India changed in 1991 following the implementation of market oriented reforms to the economy. While many studies assert that liberalization of the economy should decrease corruption, I find that the magnitude of corruption actually grew considerably following the reforms implemented by Prime Minister PV Narasimha Rao and Finance Minister Manmohan Singh. Through an analysis of how the License Raj era spurred corruption and how reforms changed corruption, this study will illustrate how the reforms increased the opportunity for rent-seeking, collusive corruption, and illicit capital outflows. These effects have helped change the petty corruption that characterized the License Raj era (1947-1990) to the grand corruption now evident within the post-reform period (1992-Present).