Does Democracy Check Corruption? Insights from China and India

While democracy is widely expected to control corruption, by commonly used yardsticks democratic India has done no better than China at checking corruption, and may have fared worse. Important aspects of corruption in India reflect institutional and political shortcomings of its democracy. Differentiating among types of corruption, and among the kinds of monopolies they embody, helps account for that contrast. Further, in the absence of economic development, democracy may have particular vulnerabilities to corruption, as economic development involves not just resources but also institutions protecting opportunities and assets while restraining excesses and abuses. Thus, prospects for reform in a poor democracy are not encouraging, even by comparison to liberal authoritarian regimes.