Corrupt Institutions of India

Date: 06-03-2025

Puzzle of Growth: Rich Countries and Poor Countries

A nation's progress and development are heavily reliant on the strength and integrity of its institutions. When a country tolerates and even legitimizes corruption within its institutions, it sets a dangerous precedent that undermines the foundation of its society and hinders its potential for growth. Corruption erodes public trust, distorts the democratic process, and hampers economic development, ultimately leading the country down a path of decline and stagnation. To ensure a brighter future, it is crucial to foster a culture of accountability, transparency, and adherence to the rule of law, while actively combating corruption at all levels of government and society.

Institutions dictate incentives

Institutions dictate incentives for entrepreneurs, who bring new ideas and contribute to a prosperous nation.

Institutions in India that are impeding the country's progress due to corruption and inefficiency include:

Our Judicial System:

With over 80,000 cases pending in the Supreme Court and approximately 5 crore (50 million) cases pending in various courts across India, 1 crore of which are civil cases, our judicial system is in a dire state. Furthermore, the courts have become complicit in corruption and favoritism towards the government. This is evident in their inability to hold the Election Commission accountable by not allowing Electronic Voting Machines (EVMs), or counting all the VVPAT slips and their decision to pass religious laws, such as the construction of the Ram Mandir on the site of a demolished mosque, which has led to increased religious unrest. Judges delay cases, thinking that delaying is their birthright, and thereby normalizing the process. For example, delaying cases under draconian laws like PMLA and UAPA, which the government uses to harass dissenters or opponents.

Our Mainstream Media:

The mainstream media in India has become a lapdog of the government, spreading government propaganda and fake news rather than holding the government accountable for its actions. They have failed to expose the government's flaws and shortcomings.

Our Educational Institutions:

Indian schools and universities continue to teach an outdated, rote-based curriculum that lacks critical thinking skills. This outdated educational system is failing to produce well-rounded, informed citizens who can contribute positively to society. Instead of focusing on improving the curriculum, the government is engaged in saffronization.

Our Government:

The current government has spent in multiples of 1000 crore on advertisements to promote an uneducated prime minister as a "viswaguru" (universal guru) with god-like status. They have used the complicit mainstream media to hide their flaws and shortcomings. The government's poor economic policies have led to a slowdown in the economy, reducing the GDP growth rate from 10% to 5-6%, despite the rapidly increasing population. India has now become the country with the highest population growth rate, surpassing China.

Our government is trying its best to hide information by introducing bills like the Digital Personal Data Protection Act (DPDP Act) to dilute the RTI and control online media by tabling bills like the Broadcast Bill. Or amending income tax laws to transform India into a surveillance state, infringing on your right to privacy by enabling the scrutiny of every person’s social media accounts, personal emails, bank accounts, online investment accounts, trading accounts, and more.

These institutions, plagued by corruption, inefficiency, and a lack of accountability, are hindering India's progress and development. Reforms and significant changes are necessary to address these issues and ensure a brighter future for the country.

Form follows function

The principle of "form follows function" emphasizes that the design or structure of an entity—whether biological, architectural, or institutional—is shaped by its intended purpose or function. In biology, the structure of cells and organisms is intricately tied to their function. For example, the elongated shape of nerve cells allows them to transmit electrical signals over long distances, while the folded structure of mitochondria maximizes energy production. Similarly, in architecture, the design of a building reflects its purpose: a stadium's open, tiered structure facilitates large audiences, while a hospital's layout prioritizes efficiency and accessibility for patient care.

This principle extends to the design of institutions, where the structure defines their function and effectiveness. Well-crafted institutions—such as democratic governments, transparent legal systems, and inclusive economic policies—are structured to promote stability, equity, and growth. For instance, a decentralized government structure can empower local decision-making, fostering adaptability and responsiveness to community needs. Conversely, poorly designed institutions, such as those plagued by centralized power or lack of accountability, often fail to deliver their intended functions, leading to inefficiency, corruption, or stagnation.

The "form" of a nation's institutions—its governance structures, legal frameworks, economic policies, and social systems—directly influences its "function," which is the overall well-being and prosperity of its citizens.

Well-designed institutions that prioritize transparency, accountability, and adaptability create an environment conducive to economic growth, innovation, and social stability. For instance, strong property rights, efficient judicial systems, and inclusive political institutions foster trust and encourage investment, both domestic and foreign. Conversely, poorly designed institutions, marked by corruption or inefficiency, hinder development and perpetuate inequality.

Thus, the prosperity of a country is deeply tied to the intentional design of its institutions, ensuring they align with the needs and aspirations of its people. In this way, the form of institutional design becomes the foundation for achieving the function of national prosperity.