Corruption as an Intractable Problem

"Corruption free government is not a necessary condition for rapid economic development. If the corporate and institutions work and uncertainty is checked, progress is possible". -S. Swaminathan
Corruption in long run may destroy the whole society morally, ethically and economically. May be in the long run, a country needs clean government to reach the top of the income ladder, may be rapid income growth by itself induces better accountability and governance, may be corruption in long run degenerates the society into several misfortunes and evils. But one fact still stands out: Clean government is not a necessary condition for rapid economic growth. A survey conducted for World Development Report some years ago, find one answer. Businessmen in surveyed countries said that the main problem with corruption was that it increases risks and uncertainties. The risks declined dramatically, if corruption produced reliable outcome (as in Indonesia). If all players have to pay 10% and could sure of getting their licenses (Madam Suharto was called 10%) entrepreneurs could treat this as just one more tax, factor it into their calculations of profit and so could invest with confidence of sure gain. Most businessman fear the arbitrariness where some entrepreneurs pay huge sums in vain, while others pay little or nothing and succeed. This happens when there is much discretion in decision making.
It also happens when some decision makers are corrupt and others are not. India is such a country where entrepreneurs are not sure of the things, some decision makers are corrupt and others are honest. One more crucial things about India is the rule of nepotism, rule of criminals and blackmailing through other modes even after paying demanded money. Arbitrariness in decisions, unreason ability of demands makes the business wary of dealing in such cases. There is a saying in India that we have honest politicians, who take money and do the needful, dishonest politicians who take money and...