Role of Institutions:
Institutions provide the framework for individuals and systems to function.
If institutions are strong, they are respected and it becomes difficult to manipulate them.
It enables the honest to survive.
In strong institutions, individual corruption is an irregularity but when they weaken, it becomes generalized.
It leads to individualization, illegality becomes acceptable and the collective interest suffers.
Situation of the day?
The rule of law is being subverted and illegality being committed on a large scale.
The growth of the black economy is a measure of illegality.
It has gone up from 4-5% of GDP in 1955-56 to the present level of 62%.
It has become ‘systematic and systemic’ and eroded institutional functioning all across the board.
This has damaged institutions.
Their breakdown leads to a failure of:
Functioning of society
Democracy is weakened
The sense of justice is eroded.
The opposition is sought to be suppressed.
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