“In India I have seen business getting bankrupt resulting people losing their savings and investment and banks going bust. However I am still not able to find a business house going bankrupt.”
There are two basic levels of corruption.
a) Which the TT in the train, the babu in the office asks. This form basically leads to inconvenience and some level of frustration and is a predominant feature of public offices and govt. Privatization, better public awareness would be the best solution to it.
b) The high level corruption where the management is directly involved:
a. Tax evasion.
b. Under-reporting of income and over-stating of expenses.
c. Use of corporate/govt. funds for personal uses.
d. Asking and accepting a cut/ commission or gifts for actions which are part of your duty in office.
A govt has a written set of rules, regulation, processes and norms which makes it hard for a person to conduct them without the world knowing about you. The “right to Information bill” which the bureaucracy is trying to halt will actually help people unearth tons of skeletons in the govt. books.
I was looking at the origin of bureaucracy, and to my surprise its introduction was a welcome move in 19th century. With it came processes, standards, accountability, practices and made the officials answerable to the higher-ups. A drastic reduction of wasteful expenditure and manmani and better utilization of funds resulted. After morphing for 2 centuries India has come to a state where govt suffers because it has too much of it and pvt. Sector suffers for they do not have any.
Private sector has reached to a stage where corruption esp. the higher level one is omnipresent. Business houses are sitting on top of huge black money reserves and funds which cannot be profitably deployed because of their dubious origins. The 4 subcategory of corruption are socially acceptable in current society and they are considered a part of the perks which the management is entitled to. In case of small privately held enterprises it just results in loss for the govt, but when large corporations do it they simply rob the shareholders trust and investments.