The failure of India's public institutions to keep pace with the dramatic political, economic and social transformations under way has led to severe gaps in governance. The end result of this disjuncture has been a proliferation of grand corruption - a malaise made up of a diverse array of regulatory, extractive, and political rent-seeking activities. Milan Vaishnav
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A "failure of public institutions" can be defined as a breakdown in the functioning of public institutions. This failure can be the result of corruption or abuse of power. It is often seen in cases where public officials receive bribes or kickbacks for giving out favors such as grants and licenses. It is also seen in cases where political leaders use their positions to reward friends and family members with contracts, jobs or other benefits.

Source: When Crime Pays: Money And Muscle In Indian Politics

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