Public Administration Ethics: Status and Problems

The syllabus line

The syllabus reads "Public/Civil service values and Ethics in Public administration: Status and problems; ethical concerns and dilemmas in government and private institutions; laws, rules, regulations and conscience as sources of ethical guidance; accountability and ethical governance; strengthening of ethical and moral values in governance; ethical issues in international relations and funding; corporate governance". This module covers the first half; the next module covers international relations and corporate governance. This lesson looks at where ethics in Indian public administration stands today and what problems it faces.

What is ethics in public administration?

It is the set of principles and standards that guide public officials in using public power, money and information for the public good. It covers:

• Individual ethics – honesty, integrity, competence of each official.
• Organisational ethics – culture, systems, incentives in departments.
• Policy ethics – fairness and justice in the content of policies.
• Systemic ethics – checks and balances, accountability institutions, rule of law.

Public service values

Public service values are the qualities expected of anyone who serves the public. Sources include the Constitution, conduct rules, the Nolan principles and the draft Public Services Bill, 2007, which listed values such as:

• Allegiance to the Constitution and its ideals.
• Political neutrality.
• Integrity, impartiality and fairness.
• Accountability and transparency.
• Merit-based decisions.
• Responsiveness to the public, especially the weaker sections.
• Courtesy and good behaviour with citizens.
• Economy in the use of public resources.

The 2nd ARC (4th report, 2007) also suggested a Code of Ethics separate from the conduct rules, with core values like integrity, impartiality, commitment to public service, accountability, devotion to duty and exemplary behaviour.

Status: the positives

Indian administration has real ethical strengths:

1. Strong constitutional framework – fundamental rights, independent judiciary, CAG, Election Commission, UPSC.
2. Legal anti-corruption framework – Prevention of Corruption Act (1988, amended 2018), Lokpal and Lokayuktas Act (2013), Whistle Blowers Protection Act (2014), Benami Transactions Act (amended 2016), Prevention of Money Laundering Act (2002), Fugitive Economic Offenders Act (2018).
3. Transparency – RTI Act (2005), e-governance, online tenders (GeM since 2016), direct benefit transfer (DBT), social audits.
4. Professional civil service – merit-based recruitment by UPSC and State PSCs.
5. Many honest officers – innovation awards and cases of outstanding service.
6. Free press and active civil society that expose wrongdoing.
7. Election management – one of the world's largest and generally credible electoral systems.

Status: the problems

Despite this, serious ethical problems remain:

1. Corruption – India scored 38/100 and ranked 96th of 180 in Transparency International's Corruption Perceptions Index 2024. Petty corruption (bribes for certificates, licences) and grand corruption (procurement, land, mining) both persist.
2. Politicisation – transfers and postings used as rewards and punishments; officers aligning with parties.
3. Nexus – links between politicians, bureaucrats, criminals and business (the Vohra Committee, 1993, reported on the criminal–political–bureaucratic nexus).
4. Red tape and delays – complex procedures create opportunities for rent-seeking.
5. Lack of accountability – few officers face consequences for poor performance; disciplinary cases drag on for years.
6. Weak protection for whistle-blowers – the 2014 Act's rules have not been fully operationalised.
7. Colonial mindset – a "ruler" rather than "servant" attitude toward citizens.
8. Conflict of interest – post-retirement jobs in private firms or political appointments; the "revolving door".
9. Policy capture – powerful lobbies shaping rules in their favour.
10. Low morale and capacity gaps – understaffing, poor training in some cadres, outdated systems.

Causes of ethical decline

Klitgaard's formula sums it up: Corruption = Monopoly + Discretion − Accountability (Robert Klitgaard, 1988). Reforms must reduce monopoly (competition, choice), limit discretion (clear rules, digitisation) and increase accountability (audits, transparency, citizen feedback).

Ethical governance: what it requires

Ethical governance means governance based on rule of law, transparency, accountability, responsiveness, equity and integrity. The 2nd ARC listed measures:

• Making corruption a high-risk, low-reward activity.
• Simplifying procedures and reducing discretion.
• Protecting honest officers from vexatious prosecution while punishing the corrupt.
• Confiscation of illegally acquired property.
• Strengthening Lokayuktas and vigilance.
• Citizen's charters and grievance redress.
• Ethics framework for ministers and legislators, including a code for ministers.
• Social audits and e-governance.

Recent reforms

• Prevention of Corruption (Amendment) Act, 2018 – bribe-giving made a specific offence; prior approval needed before investigating public servants for decisions taken in official duties (Section 17A), to protect honest decisions.
• Lokpal became functional with its first chairperson in 2019.
• Mission Karmayogi (2020) – competency-based capacity building.
• Faceless assessment in income tax (2020) – reduces contact and discretion.
• Government e-Marketplace (GeM) – transparent procurement.
• DBT – payments directly to bank accounts, reducing leakages.
• Compulsory retirement under Fundamental Rule 56(j) for officers with doubtful integrity, used more frequently since 2019.

Committees and reports to quote

Ethics infrastructure

The OECD uses the term "ethics infrastructure" for the set of tools that support integrity in the public sector. It has three parts:

1. Guidance – codes of ethics, training, leadership commitment.
2. Management – coordination by an ethics office, personnel policies that reward integrity, clear procedures.
3. Control – legal framework, accountability, transparency, public involvement and independent scrutiny.

India has strong control tools (laws, CAG, courts) but weaker guidance and management tools; there is no single statutory code of ethics for civil servants, and ethics counselling is rare. Building these softer parts is the next frontier.

Petty and grand corruption

• Petty corruption – small bribes for routine services (driving licence, ration card, land record). It hurts the poor most because they cannot afford "speed money". Digitisation (online land records, DBT, faceless services) has reduced it in many areas.
• Grand corruption – large-scale, at high levels, often in procurement, natural resources, defence and infrastructure. It distorts policy and wastes huge public funds. Tools include auctions (coal and spectrum auctions after the 2012 and 2014 Supreme Court judgments), transparent procurement and independent audits.
• Collusive vs coercive – collusive corruption benefits both giver and taker at public cost (e.g., under-assessment of tax); coercive corruption extorts money from a citizen for something they are entitled to. The 2nd ARC suggested harsher treatment of collusive corruption.

Mains practice question

"Ethics in public administration is facing a crisis of credibility." Examine the status and problems of ethics in Indian public administration and suggest measures to strengthen it. (250 words)

Answer framework

• Intro: meaning; public service values.
• Positives: constitutional and legal framework, RTI, e-governance, honest officers.
• Problems: corruption (CPI), politicisation, nexus (Vohra), red tape, weak accountability.
• Causes: Klitgaard formula; individual to systemic.
• Measures: 2nd ARC, PCA 2018, Lokpal, Karmayogi, DBT, GeM, citizen's charter.
• Conclude: systems plus values.