HC Deb 05 February 2001 vol 362 c409W
Mr. Streeter

To ask the Secretary of State for International Development what recent assessment she has made of the level of corruption in India. [147213]

Clare Short

Corruption is widespread in India at every level of public life, as in most developing countries, reflecting weak financial and administration systems. Rent seeking and other for Ms of corruption hit poor people particularly hard and have a significant impact on their economy.

The Union and State Governments of India are beginning to take anti-corruption measures beyond those that already exist in the form of statutory audit bodies and Vigilance Commissions. State Governments such as those of Andhra Pradesh and Medhya Pradesh, with both of whom DFID is working in partnership, are placing an increasing focus on good governance initiatives, including anti-corruption. Anti-corruption strategies are also being developed in a number of national public institutions.

DFID is supporting a number of strategic initiatives in all four of our partner states which will directly help reduce corruption. These initiatives include the introduction of VAT and revenue enhancement measures; increasing political accountability through decentralisation and local decision-making; the redesign of public expenditure management syste Ms including procurement and audit functions; and improved service delivery including the introduction of electronic governance bringing services directly to the poor. Our support for public enterprise reform will help reduce corrupt practices in public utilities through the introduction of sound, commercial practices and the creation of an effective regulatory framework. At the national level, in supporting health and education programmes, DFID has helped give priority to the introduction and strengthening of transparent transaction processes. We are also discussing support for broader governance initiatives that will help reduce corruption.