Action for India's Renewal
Economic Times, June 25, 2012
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By Pradeep S Mehta
It is time for every citizen to
be counted in the peaceful campaign to tackle corruption and
kickstart stalled policy
The world is in turmoil and so
is India, but for different reasons. The common denominator
is that bad governance everywhere is the main reason for the
apocalypse. Europe is fighting a financial crisis resulting
from profligacy of some countries. However, because of their
interconnectedness, other countries are trying to salvage
the situation. Few other parts of the world, such as the
Arab world, too are not at peace or stable. In India, we
have an elected government, but rudderless, and an
Opposition that is suffering from sclerosis. There is severe
polity paralysis and policy stasis, sprinkled with a dose of
profligacy. While many politicians are busy in making money
in partnership with civil servants and businessmen, most of
our people are suffering from the adversity. Not all
politicians or civil servants or businessmen are crooked, so
it would be unfair to use a paintbrush. But all of us are
frustrated and agitated with the alarming situation, and are
hugely worried.
Our growth rates are plunging and it does not need any
explanation - much is being said in the media. The outcomes
will lead to a big dip in our economy and the poor will
suffer the most. To come out of a depression, it takes much
longer than going downhill. Recently, Fitch, the global
rating agency, has downgraded India's creditworthiness to
negative citing corruption, slow growth, inadequate reforms
and inflation. Earlier, Standard and Poor's too had
downgraded India from stable to negative.
Both crony capitalism and political patronage are
responsible for the decline. Crony capitalism, particularly
in the natural resource sector, is humongous, and the
government's showcase methods of arresting the disease
cannot succeed. All social welfare schemes such as MGNREGA
or the public distribution system are but milch cows for the
grassroots polity. Some benefits do accrue to the deserving
but the lion's share goes to the undeserving. Social audit
projects under MGNREGA have faced serious problems from the
local polity and babus, because it exposes them and will
pre-empt further rents. Even the proposal for state funding
of elections is not necessarily the best solution, because
it cannot overcome greed and avarice that is the cause for
increasing corruption.
The rot begins from the top, which Rajeev Chandrasekhar,
member of Parliament and former Ficci president, has argued
convincingly in an electronic debate run by CUTS
FunCompForum. The buck stops at the PM, and he cannot claim
innocence. Among other specific laws, the Indian Penal Code,
1860, inter alia covers acts of both commission and omission
by public servants, which includes ministers. There are just
two general exceptions to the code: if a police officer
arrests someone in the process of committing a crime without
a warrant, or if the person is a child below the age of
seven years.
None of the misdemeanours have been committed by
seven-year-olds, but by mature people, many of whom have
sworn an oath to uphold the Constitution. Alas, some have
been arrested but convictions are yet to happen, while most
go around without any fear.
On the other hand, corruption campaigners are being vilified
on the ground that their organisations receive foreign
funding. Even Magsaysay awardees are being labelled as being
suspect because the noted Philippines-based Magsaysay
Foundation gets financial support from US-based charities.
This is just stretching it too far and is plainly ludicrous.
Organisations getting foreign funding are under the
microscope of the government, but they certainly have not
sold their souls for a few pennies. But politicians and
others have salted away their ill-gotten wealth abroad, and
the debate for getting the money back home goes on without
any sight of resolution.
But there is some good news too: our savings rate continues
to hover around a healthy 30%, which enables higher gross
capital formation and that there are no major policy
reversals. Many good things have also been done during the
last few years. Notwithstanding the increasing menace of the
Naxalite movement, restoring some balance in our governance
systems on tribals and minorities, otherwise the social
unrest could have been more costly for our economy.
To deal with corruption, the RTI Act and the Aadhaar scheme
are proving helpful. Some states have also enacted laws for
assured access to basic services and fast-track courts with
the power to seize corrupt persons' properties. All new
initiatives will face hurdles but one need not be sceptic
about them.
Finally, we cannot find one particular medicine for the
malaise, as cancer cannot be treated by an aspirin, but
needs special treatment. There is need for rejuvenation and
it has to be done by connecting all the dots. Importantly,
trust between the people and government has been shrinking.
Only if trust is restored, people will respond positively
and raise production.
Fourteen eminent citizens wrote twice to the PM and others
in January and October 2011 on the seriousness of the
corruption pandemic with suggestions to deal with the issues
and restoration of trust. ET carried a month-long debate,
Agenda for Renewal, and several eminent people contributed
to it.
It is time to revisit the debate so that a healthy peaceful
campaign can be run in the country, to enable us to get out
of this morass and restore trust before it is too late.
The author is secretary
general of CUTS International
This news can
also be viewed at: http://economictimes.indiatimes.com/
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Programme
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2nd CUTS Thought
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Public Information Infrastructure and Innovations
July 09,
2011, Jaipur
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