By Vivek H. Dehejia – Economic development in a weak or collusive state like India’s often generates, and is fed by, corruption. This process creates inequalities of wealth, income, and power. However, it’s also possible that these very forces, by evoking public discontent, pose a danger to the legitimacy of the capitalist system itself. This danger necessitates a policy response from the state, regardless of its political system or ideological bent.
A number of developing states today, and in the past, have faced the problem of fighting the corruption that is often endemic to rapid economic growth. But the way they have addressed that problem has varied widely.
In the United States, the government responded by instituting regulatory reform and creating a welfare state. Post-unification, Bismarck-era Germany took a similar path around the same time, and later so did the United Kingdom as well as other Western democracies. more> http://tinyurl.com/3p6nqbg