Indian corruption is propagated by beaurocrats because the middle-man beaurocracy has power. The US gives power to elected officials, so corrupt money is channeled through lobbying and cushy retirement jobs.
The best we can do is to increase visibility (eg: making campaign finances public) and remove points of friction. The other alternative is to go full Singapore and become authoritarian. Democratic govts. have limited power, so they can't ensure quantity and quality at the same time.
It has led me to conclude that small-but-strong govts are optimal for to deterring corruption.
An unintented? consequence of demonetization was digitization of the Indian financial system, which has enhanced visibility. The sell-off of non-performing PSUs is another great step. Hope the Govt. picks up the pace on these changes, but at least the general.direction is encouraging.
Corruption doesn't happen because people have less money. If that was true, the poorest would be the most corrupt and the richest would be the least corrupt. This is definitely not the case. It happens when there is no downside to it.
> higher accountability of the funds allocated for government projects
How? By having more government employees to monitor the existing ones? This is the exact kind of solution that would come from a seasoned bureaucrat. It serves the purpose of looking like a solution while adding to the problem.
What should be done is to remove most of the government employees and hire firms to do the job instead. That way, the individual activity and performance is the responsibility of the firm. Will some of these private firms be corrupt? Yes, but they can be monitored and replaced much easier than you can do with millions of individual government employees. Corruption can be reported directly to the firms and they will have incentives to sack the corrupt employees because of the fear of being investigated and sacked by the government.
That is a bit simplistic. The penalty for corruption could be death, definitely a downside, but an official will only be singled out for punishment if they displace someone more powerful. Corruption as such thrives in countries without strong rule of law (where laws might be harsh but are applied arbitrarily).
It seems clearly true to me that poorer countries have greater issues with corruption than poorer ones. What makes you say that's not true?
As I understand things, highly corrupt countries have a sort of 'bribe pyramid' where the police chief remits a certain amount of bribe revenue to his boss in order to keep his job, who in turn gives a portion to his boss and so on, so the police chief sees a lot of money, but will be replaced if he develops a conscience.
Most people wouldn't accept a bribe that would be just pocket money (unless they're so corrupt they get as many as tips), but having a bribe offer equivalent to a month salary (or 2, or 3) really makes you think.
India's approach is technological, like the Aadhar biometric system to ensure financial aid payments are not embezzled by corrupt officials. Some cultures like Scandinavia have managed to develop a zero-tolerance approach to corruption, like the minister who had to resign because she used her government credit card to buy a chocolate bar.