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Three economists—Daron Acemoglu, Simon Johnson, and James A. Robinson—who were awarded the 2024 Nobel Prize in Economic Sciences, argue that the effectiveness of institutions that uphold the rule of law, protect individual rights, and ensure broad participation in the economy is essential for sustained growth. In contrast, countries with weak legal systems and exploitative institutions struggle to prosper. Corruption, autocracy, and expropriation are major obstacles to growth. People are more likely to work hard and focus on long-term prosperity when they are confident that their property will be protected and their income and profits safeguarded for future generations. Corruption is one of the key expropriating channels, where individuals in powerful state institutions exploit the public—who are the true resource for growth—leading to feelings of helplessness, indifference, and disengagement.

The United Nations Convention of 2005 outlined a series of measures to prevent corruption. These include creating and implementing effective anti-corruption bodies, establishing transparent recruitment and promotion systems for civil servants, and instituting a regulatory and supervisory framework for financial institutions to detect and deter money laundering.

Corruption manifests in various forms, such as bribery, fraud, theft of public resources, favoritism, and the misuse of public assets for private gain. India has established a robust framework of regulatory acts and agencies to tackle corruption. Key laws and implementing bodies include the Bharatiya Nyaya Sanhita (the successor to the Indian Penal Code), the Prevention of Corruption Act of 1988, the Commissions of Inquiry Act of 1952, the Lokpal and Lokayuktas Act of 2013, the Central Vigilance Commission, the Central Bureau of Investigation, the Enforcement Directorate, the Foreign Exchange Management Act (FEMA) of 1999, and the Prevention of Money Laundering Act of 2002, among others.

The Supreme Court of India has consistently observed that corruption is not only a criminal offense but also undermines human rights. In fact, systematic corruption is considered a violation of human rights, as it often triggers economic crises (State of Maharashtra and CBI vs. Balakrishna Dattatrye Kumbha). In another case, the Court ruled that an accused person is presumed to be corrupt until exonerated by the appellate or revisional courts (Lily Thomas case, 2013, SC). The Court further emphasized that corruption is a serious malady that undermines the very health of the polity and, therefore, corruption trials must be conducted swiftly, ideally within one year from the date of framing charges.

In India, initiatives such as citizens’ charters, the RTI Act, social audits, public grievance redressal mechanisms, and the institution of Lokayuktas have made significant strides in promoting transparency. However, the corruption lobby is now attempting to hide citizens’ charters from public view in government offices and has even organized attacks on RTI activists. The Lokpal and Lokayuktas Act of 2013, enacted following public activist Anna Hazare’s movement, is a powerful tool in the hands of the Indian people. The Lokpal has the authority to conduct inquiries and launch prosecutions without prior government approval, including for cases involving the CBI. However, Group C and D employees, who have the most contact with the public, have been excluded from the Lokpal’s purview.

Anti-corruption laws should be accountable to the public through their respective legislatures. Review reports should be presented before the State Legislative Assemblies and Parliament at least every two years. Based on public feedback, amendments should be made to keep these laws dynamic, responsive, and focused on public welfare.

For India to reach its goal of becoming a $5 trillion economy by 2047, it is crucial that both government and private sector operations accelerate. Even personal relationships in India have been tainted by corruption, which extends to both the public and private sectors. Delay breeds corruption—if delays are eliminated, corruption will be significantly reduced. The delay in case resolution is also a significant impediment to economic growth.

The Nobel Laureates are clear in their assertion that countries with high levels of corruption, particularly within their legal and political systems, are unlikely to succeed. Through a combination of historical case studies and rigorous economic analysis, they have shown that institutions are the driving force behind economic development. This concept is also central to their groundbreaking book Why Nations Fail. The difference between a nation that fosters opportunities for all and one that concentrates wealth in the hands of a few is stark. In India, corruption has weakened institutions, undermining their capacity to function effectively. According to the Nobel Laureates, countries plagued by rampant corruption cannot expect sustained economic growth. Without strong, inclusive institutions, even well-intentioned economic policies are doomed to fail. Therefore, tackling corruption should be a priority for governments, requiring transparent, efficient, and impartial institutions.

The ideas presented by the Nobel Laureates are highly relevant for India today. Their recommendations to strengthen anti-corruption bodies and institutions entrusted with upholding the rule of law must be implemented both in spirit and practice. Members of the ruling party, who constitute a significant portion of those needing scrutiny, should not be exempt from these efforts, as power often breeds corruption. India should not be seen merely as a country engaged in dialogue but as a nation ready to implement new ideas and concepts for positive change.